Banking on the transition: No net zero without lenders' support

Role of banks is critical

2021, culminating in COP26, was a massive step forward for net zero adoption. However, evidence shows that it is far easier to set nationally determined contributions (NDCs) than to deliver them at corporate level.

The number of companies meeting 'minimum standards' for net zero targets almost doubled but remains small at only 207. The science-based targets initiative has identified a pathway for corporates to adopt a realistic plan for achieving net zero, but it is early days and incentives are uneven. This is where banks hold the key. Banks' role in the transition process is sometimes described as that of a police officer. They have relationships with every sector of the economy and this privileged position allows them to bring about change at scale. For banks to take on this mantle in a credi...