Green bonds for 200 billion, but still leading fossils

(ANSA) - ROME, DECEMBER 03 - Banks have increased their commitment to sustainable finance, with green bonds (green bonds) that have gone from one billion dollars to over 200 billion in ten years, in 2019, but this commitment "is overshadowed by investments in fossil fuels" that have reached 2 trillion dollars since 2015 and continue to grow. This is what emerges from the study on 58 international banks carried out by the green investment company Boston common asset management "Banking on a low-carbon future".
The Boston common study indicates several advances in the sector, with 40 out of 58 banks adhering to the guidelines of the Task force on Climate-related Financial Disclosures. 81% of banks then provide reports on their commitment to climate policies (it was 71% in 2018), 84% use certifications on green products made by third parties (it was 66% a year ago) and more than 80% disclose information on low-emission products and services. Furthermore, 55% of the groups envisage explicit objectives on the growth of green products, while 40% define a specific focus on "clean and green" finance.
However, these policies tend to have "only a small impact on commercial behavior", notes the report, which indicates that "the climate emergency dimension requires a more radical transformation of the banking sector" and entails risks for shareholders to move forward with the "business as usual". In recent years, according to what the Financial Times writes in presenting the Boston common study, fossil fuel financing has been twice the total value of green bonds issued since 2007, which is equal to one thousand billion dollars.
Listed companies are likely to lose $ 1.2 trillion over the next 15 years if they do not immediately tackle the climate emergency, according to estimates by the UN Environment Finance Initiative cited in the report. And in the face of the risks of exposure to fossil fuels in their portfolios "banks should not need scenario analysis to make prudent investment choices", reads the text. Finally, the report reports that investing 1,800 billion in climate adaptation would lead to benefits of 7 trillion by 2030, according to the latest estimates by the Adapter Commission. (HANDLE).