A group of investors representing $1.8tn has written to the world’s largest banks to act on climate change.
JP Morgan, Deutsche Bank, HSBC and Bank of America are among the 60 banks that have been approached by 100 investors, including Aviva Investors, Hermes Investment Management and Candrium Investors.
Banks could lose 5% to 20% in value if they continue in with business as usual, a recent study estimates.
One of the letter’s recipients, Australia’s Commonwealth Bank, currently faces an investor lawsuit over allegations it has failed to properly disclose climate change risks to the business.
The letter calls for climate action through risk management, low-carbon banking products, public policy engagement and strategy and implementation. The Paris Agreement target to limit global warming to two degrees requires $93trn of investment by 2030. The international agreement also states that finance needs to flow towards low greenhouse gas emissions and climate-resilient development.