Demand Stronger Climate Guidance for Banks

In 2021 alone, the world’s 60 largest banks, including four major US-based banks, dumped an estimated $742 billion into fossil fuels. All four of those banks have commitments to achieve net-zero emissions by 2050.   

Something doesn’t add up.   

Despite touting their climate commitments, major financial institutions continue to fund fossil fuels at the expense of us all, especially our most vulnerable communities. The Federal Reserve is seeing the writing on the wall and has released draft principles to provide guidance for large banks to protect our economy from climate-related financial risks.   

While this is a good first step, it doesn’t go far enough.   

The principles don't go far enough to recognize the disproportionate impacts imposed on frontline communities the longer financial institutions delay reducing emissions. Nor do they take into account smaller regional banks that are vital to mitigation. And they lack science-based net-zero plans and a timeline for implementation practices.  

We can’t keep letting major banks slow-walk addressing the crisis they funded.  While the Federal Reserve is still taking feedback on these principles, this is our chance to demand that they establish the strongest possible recommendations to protect climate-vulnerable communities and our financial system.