Banks and Insurers struggle to turn climate pledges into results

illuminem summarizes for you the essential news of the day. Read the full piece on Bloomberg Law or enjoy below:

🗞️ Driving the news: Many US financial institutions, including JPMorgan Chase and Allstate Corp., are struggling to turn their ambitious climate pledges into concrete results
• Despite commitments to reach net zero emissions, poor long-term planning and inconsistent metrics hamper progress

🔭 The context: A recent survey shows fewer than 20% of financial institutions have climate transition plans extending beyond one year
• While some have set aggressive targets, such as Allstate's goal to zero out direct emissions by 2030, they often lack detailed plans for Scope 3 emissions, which comprise the majority of their carbon footprint

🌍 Why it matters for the planet: Achieving net zero emissions is critical for meeting the 2016 Paris Agreement targets
• Financial institutions play a pivotal role in this transition by directing investments towards sustainable projects and away from high-emission sectors

⏭️ What's next: The UK may develop a formal standard for climate transition plans as part of its transition to the International Sustainability Standards Board guidelines
• This could provide a roadmap for companies to better tailor their plans and assess progress

💬 One quote: "These goals are wonderful if they are achieved, but they are worse than nothing if they are not backed by concrete plans for implementation, interim goals, and clear metrics," said Michael Gerrard, founder of the Sabin Center for Climate Change Law at Columbia University

📈 One stat: Fewer than 20% of financial institutions have made climate transition plans more than a year into the future, according to a recent survey

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