Investor group calls for banks to set tougher climate targets
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A group of investors managing $11 trillion in assets has called on banks to set tougher emissions targets ahead of a meeting of world leaders aimed at accelerating efforts to fight climate change.
The group, which includes Pimco, the world's biggest bond investor, and Britain's biggest asset manager, Legal & General Investment Management, said they wanted lenders to set 'enhanced' pledges to decarbonise their lending books.
While a number of the world's biggest banks have already said they have an 'ambition' to reach net zero greenhouse gas emissions by 2050, many have yet to specify how they plan to do so and continue to fund heavy emitting activities.
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"The problem we face today is that too many banks are failing to consider climate harm when they make financing decisions, and too much money is being ploughed into carbon-intensive activities that we so desperately need to move away from," said Natasha Landell-Mills, Head of Stewardship at Sarasin & Partners.
As the United States gears up to host the April 22-23 Leaders Summit on Climate, the investor group said it wanted banks to speed up their efforts, including by setting interim targets to get to net-zero emissions by mid-century or sooner.