A review of more than 32 banks in Asia found that zero had made clear commitments or plans to meet Paris client agreement goals, according to Singapore-based environment group Asia Research & Engagement.
While nearly 200 countries signed a pact in Glasgow last year calling on financial institutions worldwide to support climate change goals, efforts in Asia continue to lag.
According to a review of 32 banks by Singapore-based Asia Research & Engagement (ARE), only nine made long-term net-zero commitments for financing emissions and 13 had policies prohibiting the financing of new coal-fired power.
None of the banks reviewed made any clear commitments or adequate implementation plans to meet the goals of the Paris climate agreement.
Green Washing Risk
Despite the limited commitment and lagging efforts to clean up the existing product shelf, the review underlined great willingness at the region’s banks to market and launch new ones focused on green finance.
«This raises concerns of greenwashing: that banks are seeking a marketing benefit for sustainable finance deals while providing higher levels of finance to dirty industries,» the ARE report said.
Asia’s Highest Rated
Singapore’s DBS was the highest ranked Asian bank though the report also noted it had made no clear short and medium-term plans and had gaps in its financing policies.
China – a key player for Asia to achieve its climate change ambitions – was notably present amongst the bottom rankings making up at least three out of the five banks with the lowest ratings including Bank of Ningbo, Ping An Bank and the Shanghai Pudong Development Bank.
