Most of the world’s largest banks have committed to becoming net zero across their own operations and energy consumption (Scopes 1 & 2) as well as within their lending and investment portfolios (Scope 3). However, only 6% of banks are currently on track to reduce their Scope 1 & 2 emissions by 2050. Even fewer are set to meet their Scope 3 commitments.
Scope 3 (category 15) is an urgent priority, because the emissions banks finance represent more than 95% of the total emissions for which an average bank is responsible.
Measuring and reducing Scope 3 emissions, over which banks have no direct control, is a huge challenge. But unless banks quickly master the preliminary stages of their own transition to net zero and simultaneously get to grips with their Scope 3 emissions, they are likely to miss the opportunity to grow their businesses, build closer relations with corporate customers and advance sustainability.