Research: 88% of Top Global Banks Unprepared for Climate-Related Disruptions

Despite growing awareness, only 7 of the top 50 banks assessed meet more than half of the climate adaptation criteria, and none meet all criteria. The report also highlights regional disparities, showing that European banks lead in climate adaptation, while banks in the U.S. and Australia lag, with many ranked at the bottom of the list.

Top Ranked Global Banks by Climate Adaptation Maturity

• Standard Chartered PLC (UK)
• Banco Santander SA (Spain)
• Banco Bilbao Vizcaya Argentaria SA (Spain)
• UniCredit SpA (Italy)
• Sberbank of Russia (Russia)

Lowest Ranked Global Banks by Climate Adaptation Maturity

• Japan Post Bank (Japan)
• Morgan Stanley (US)
• Goldman Sachs Group Inc. (US)
• Capital One Financial Corp (US)
• U.S. Bancorp (US)

Lukky Ahmed, CEO of Climate X, said: “As the climate crisis accelerates, the ability of banks to help clients better understand and manage physical climate risks is critical to long-term economic stability. Our research shows that, despite increasing awareness, many banks are still falling short in implementing robust climate adaptation strategies. It is vital that banks incorporate adaptation into their strategic decision-making processes and develop products and services that support resilience.”

“This ranking sheds light on significant transparency and action gaps across the banking sector,” said Kamil Kluza, COO of Climate X. “While a handful of institutions are making strides, the vast majority lack evidence of clear metrics and strategies for supporting communities and businesses affected by climate-related disasters. With climate inaction potentially costing up to 20% of cumulative global GDP by 2100, banks will need to take a leadership role in driving adaptation financing to ensure that businesses and economies can withstand the challenges posed by climate change.”

Link to full ranking of the top 50 banks by climate adaptation maturity here.