88% of global banks unprepared for climate disruption
A first-of-its-kind system has ranked the world’s 50 largest banks on readiness for a changing climate. The results aren’t good.
Almost all large commercial banks are lagging behind on implementing effective measures to climate-proof their operations and those they finance. Only seven of the world’s biggest firms in the sector were met more than half of climate adaptation criteria. None complied with all.
The report, The Top 50 Banks in the World Tackling Adaptation (2024), was compiled by Climate X, a leading firm in environmental risk data analysis. Produced in collaboration with Climate Proof, according the first-of-its-kind ranking system, European banks are leading in this area.
Four of the worst performing banks – Morgan Stanley, Goldman Sachs Group Inc., Capital One Financial Corp., and U.S. Bancorp, were all US based. Also in the bottom five was Japanese institution, Japan Post Bank.
Standard Chartered PLC (UK), Banco Santander SA (Spain), Banco Bilbao Vizcaya Argentaria SA (Spain), UniCredit SpA (Italy), and Sberbank of Russia (Russia) were the best performers.
Banks were ranked on 17 qualitative indicators, grouped into three categories: ‘think’ – strategic alignment and assessment of physical climate risks, ‘do’ – implementation of adaptation measures and strategies, and ‘track’ – monitoring, reporting, and transparency of adaptation actions.
‘With this inaugural annual ranking, we hope to shine a light on the gaps in the financial sector’s preparedness for climate risks,’ said Lukky Ahmed. ‘Our message to banks is clear: now is the time to act. The longer they wait, the more severe the consequences will be, not just for them, but for the entire economy.’
‘Despite the growing urgency, the study shows a significant gap in how banks address climate adaptation,’ the continued. ‘Climate adaptation is no longer a choice for the financial sector – it’s a necessity. Our ranking demonstrates that while some banks are beginning to take steps to prepare for a hotter, more volatile world, the majority have a long way to go. It is vital that banks incorporate adaptation into their strategic decision-making processes and develop products and services that support resilience.’
The top 50 global banks ranked in order of climate adaptation maturity:
| Bank | Country
|
Think Indicators | Do Indicators | Track Indicators | Total Indicators | Rank |
| Standard Chartered PLC | UK | 6 | 4 | 2 | 12 | 1 |
| Banco Santander SA | Spain | 5 | 4 | 2 | 11 | 2 |
| Banco Bilbao Vizcaya Argentaria SA | Spain | 4 | 4 | 2 | 10 | 3 |
| UniCredit SpA | Italy | 4 | 4 | 1 | 9 | 4 |
| Sberbank of Russia | Russia | 3 | 4 | 2 | 9 | 4 |
| Sumitomo Mitsui Financial Group Inc. | Japan | 4 | 4 | 1 | 9 | 4 |
| La Banque Postale SA | France | 4 | 4 | 1 | 9 | 4 |
| Rabobank | Netherlands | 4 | 4 | 0 | 8 | 5 |
| HSBC Holdings PLC | UK | 3 | 5 | 0 | 8 | 5 |
| Mizuho Financial Group Inc. | Japan | 4 | 3 | 1 | 8 | 5 |
| Groupe BPCE | France | 3 | 5 | 0 | 8 | 5 |
| Mitsubishi UFJ Financial Group Inc. | Japan | 3 | 4 | 1 | 8 | 5 |
| Lloyds Banking Group PLC | UK | 5 | 3 | 0 | 8 | 5 |
| Nordea Bank Abp | Finland | 3 | 3 | 1 | 7 | 6 |
| ING Groep NV | Netherlands | 4 | 3 | 0 | 7 | 6 |
| Commerzbank AG | Germany | 3 | 3 | 1 | 7 | 6 |
| Credit Mutuel Group | France | 3 | 3 | 1 | 7 | 6 |
| Credit Agricole Group | France | 3 | 2 | 2 | 7 | 6 |
| UBS Group AG | Switzerland | 3 | 3 | 1 | 7 | 6 |
| CaixaBank SA | Spain | 3 | 2 | 2 | 7 | 6 |
| Norinchukin Bank | Japan | 4 | 3 | 0 | 7 | 6 |
| Bank of America Corp. | US | 2 | 4 | 1 | 7 | 6 |
| Royal Bank of Canada | Canada | 3 | 3 | 0 | 6 | 7 |
| Westpac Banking Corp. | Australia | 4 | 2 | 0 | 6 | 7 |
| State Bank of India | India | 4 | 2 | 0 | 6 | 7 |
| Itau Unibanco Holding SA | Brazil | 3 | 3 | 0 | 6 | 7 |
| Intesa Sanpaolo SpA | Italy | 2 | 4 | 0 | 6 | 7 |
| Societe Generale SA | France | 3 | 2 | 1 | 6 | 7 |
| Commonwealth Bank of Australia | Australia | 2 | 4 | 0 | 6 | 7 |
| Toronto-Dominion Bank | Canada | 2 | 4 | 0 | 6 | 7 |
| Barclays PLC | UK | 3 | 2 | 1 | 6 | 7 |
| Bank of Nova Scotia | Canada | 2 | 4 | 0 | 6 | 7 |
| NatWest Group PLC | UK | 2 | 4 | 0 | 6 | 7 |
| ANZ Group Holdings Ltd. | Australia | 1 | 4 | 0 | 5 | 8 |
| BNP Paribas SA | France | 3 | 2 | 0 | 5 | 8 |
| Deutsche Bank AG | Germany | 3 | 2 | 0 | 5 | 8 |
| DZ Bank AG | Germany | 2 | 3 | 0 | 5 | 8 |
| Canadian Imperial Bank of Commerce | Canada | 3 | 2 | 0 | 5 | 8 |
| Bank of Montreal | Canada | 2 | 3 | 0 | 5 | 8 |
| PNC Financial Services Group Inc | US | 2 | 2 | 0 | 4 | 9 |
| DBS Group Holdings Ltd. | Singapore | 2 | 2 | 0 | 4 | 9 |
| Citigroup Inc. | US | 1 | 3 | 0 | 4 | 9 |
| National Australia Bank Ltd. | Australia | 1 | 2 | 0 | 3 | 10 |
| JPMorgan Chase & Co. | US | 1 | 2 | 0 | 3 | 10 |
| Wells Fargo & Co. | US | 1 | 1 | 0 | 2 | 11 |
| Japan Post Bank | Japan | 1 | 1 | 0 | 2 | 11 |
| Morgan Stanley | US | 1 | 0 | 0 | 1 | 12 |
| Goldman Sachs Group Inc. | US | 0 | 0 | 0 | 0 | 13 |
| Capital One Financial Corp. | US | 0 | 0 | 0 | 0 | 13 |
| U.S. Bancorp | US | 0 | 0 | 0 | 0 | 13 |
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