According to a Wednesday published study, Asian banks are “falling short” in meeting global climate pledges and aligning themselves with decarbonisation aims. Nearly 200 countries signed an agreement in Glasgow last year, calling on financial institutions and banks around the globe to mobilise more financing to help achieve global climate goals.
Asia Research & Engagement (ARE), a Singapore-based environmental group, found that 32 banks across East and Southeast Asia had not made clear commitments to the Paris climate accord. It said that while banks have been quick in launching green financial products, they have lacked the necessary infrastructure to clean up existing products and implement policies to divert capital from carbon-intensive industries.
The report stated that “This raises concerns about greenwashing: that banks seek a marketing advantage for sustainable finance deals while providing greater levels of finance to dirty industry.” Only nine of the 32 major banks in countries like China, Japan and South Korea had long-term net zero commitments for emissions. While only 13 have policies that prohibit the financing new coal-fired power,
The DBS Group of Singapore was the highest-ranking Asian bank. While it has a long term net-zero target, it has not yet made any specific short- or mid-term plans. It also has a lot of gaps in its financial policies. DBS Group in Singapore did not immediately respond to a request for comment.
Five banks received the lowest rating, as they had “barely began” their journey towards climate ready, including China’s Bank of Ningbo (Ping An Bank), Shanghai Pudong Development Bank (Shanghai Pudong Development Bank) and Ping An Bank (China’s Bank of Ningbo). None of the three banks responded immediately to requests for comment.
ARE stated that banks must establish clear climate policies aligned to national goals to avoid regulatory risks in the future and ensure clients’ transition to cleaner, more competitive technologies.
(This story was not edited by Devdiscourse staff. It is generated automatically from a syndicated feed.
