US banks with high climate transition risk exposure are less likely to disclose these risks, and more likely to “actively lobby” against stricter climate policies, according to a new study, which questions banks’ role in helping decarbonise the economy.
The study by Swiss and German researchers on climate transition risks of 34 major US banks, including Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase and Morgan Stanley, calculated a climate transition risk exposure or CTRE score for each bank based on the carbon footprint of borrowers in their $4tn syndicated loan portfolios during the period 2002-2021.
