A survey conducted by responsible-investment campaign group ShareAction showed that Lloyds Banking Group Plc and UniCredit SpA are considered "bystanders" — or ranked the lowest in terms of climate-change response — among the 15 largest lenders in Europe.
The study surveyed the banks on four "themes" including climate-related risk assessment and management, low-carbon products and services, public policy engagement and collaboration with other organizations, and governance structures and strategy on climate-related risk and opportunities.
BNP Paribas SA, considered the "leader," ranked the highest in the survey, trailed by "challengers" UBS Group AG, HSBC Holdings Plc, Crédit Agricole Group, Société Générale SA and ING Groep NV.
Lloyds told the Financial Times that it is "considering what other action we can take to support the transition to a low-carbon economy."
While all surveyed lenders are aware of climate-related risk and opportunities, having already set out policies for risk mitigation, ShareAction said the research still revealed "some considerable weaknesses" in the banks' climate-change response. The organization warned investors about the underperformance of the banks, especially in more complex areas of risk assessments and management and low-carbon products and services, saying that it should be a "red flag."
Over 100 investors, who have combined assets under management of over $2 trillion, wrote to 62 of the world's largest banks calling for better climate-related disclosures, the FT noted in its Dec.7 report.
The survey also emphasized how French banks outperform their peers, with ShareAction noting their high placement with regard to legislation and regulatory measures. Meanwhile, the FT said the Bank of England plans to release its climate-change risk review for the British banking sector in a few months.
ShareAction said 2018 is likely to be "a good moment" for investors to begin climate-related talks with banks.
