Research conducted by Ethical Consumer magazine reveals that, despite numerous declarations regarding environmental commitments, only two of the UK’s 36 major banks have effectively demonstrated actionable plans to reduce their carbon footprints in a timely manner.
The magazine assessed the climate strategies of UK banks, assigning ratings of ‘worst’, ‘middle’, or ‘best’ based on their carbon management and reporting measures. Triodos Bank and the Ecology Building Society both earned a ‘best’ rating for their commitment to transparency; they accurately report their carbon emissions, including those from loans and investments, utilizing the Partnership for Carbon Accounting Financials methodology.
Conversely, Ethical Consumer critiques other institutions, such as Citi and Bank of Ireland, for producing “fine words” while falling short in addressing the enormity of the climate challenge ahead. Some banks have set specific future targets for carbon assessments, with NatWest being notably ambitious, aiming to quantify its climate impact and establish sector-specific targets by 2022.
In a significant move, the Co-operative Bank stands out as the only major institution to explicitly commit to refraining from financing new fossil fuel projects. Rob Harrison, editor of Ethical Consumer, highlighted the contradiction of investing in new coal or gas infrastructure in 2020, as such projects typically have a lifespan of up to 40 years. He emphasizes the urgency of meeting the collective goal of achieving net-zero carbon emissions by 2050, a mere twenty years away.