Most of the largest commercial banks in the world are lagging behind in implementing effective measures to climate-proof their operations and those of the businesses they finance, according to a new ranking which assesses how well banks are responding to escalating climate risks. Despite growing awareness of climate adaptation, the ranking reveals that only seven of the world’s top 50 banks are meeting more than half of the climate adaptation criteria, and none meet all of them. 

The Top 50 Banks in the World Tackling Adaptation (2024) report from Climate X (a leader in climate risk data analytics) in collaboration with Climate Proof found that European and UK banks performed relatively better than their counterparts in the US, Canada, and Australia, driven by stricter climate policies and frameworks in the region. The leading institutions in the ranking include Standard Chartered, Banco Santander, and UniCredit, all of which demonstrated more advanced engagement with climate adaptation strategies.

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)

“The ranking comes at a critical time when climate change is having a profound impact on the global economy”, said Lukky Ahmed, CEO of Climate X. “From extreme weather events to longer-term environmental shifts like rising sea levels and biodiversity loss, the business landscape is being transformed, and the banks that finance these businesses must adapt to a rapidly changing world. Despite the growing urgency, the study shows a significant gap in how banks address climate adaptation.”

“Climate adaptation is no longer a choice for the financial sector – it’s a necessity,” continued Ahmed. “Our ranking demonstrates that while some banks are beginning to take steps to prepare for a hotter, more volatile world, the majority have a long way to go. It is vital that banks incorporate adaptation into their strategic decision-making processes and develop products and services that support resilience.”