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Data year: 2023· Sources: CDP, IEA, EPA
0.3%
of global emissions
0.17
Gt CO2e / year
3.5
tCO2e / $M revenue
80%
Scope 3 share
Average emissions intensity for finance & banking companies (2023 data)
| Company Size | tCO2e / employee | tCO2e / $M revenue |
|---|---|---|
| Small bank / credit union | 2 | 5 |
| Mid-size bank / insurer | 4 | 3.5 |
| Global systemically important bank | 6 | 2.5 |
Small bank / credit union
2
tCO2e / employee
5
tCO2e / $M rev
Mid-size bank / insurer
4
tCO2e / employee
3.5
tCO2e / $M rev
Global systemically important bank
6
tCO2e / employee
2.5
tCO2e / $M rev
Key decarbonization actions for the finance & banking sector
Measure and disclose financed emissions (PCAF)
Transparency — prerequisite for all other actions
Set sector-specific portfolio decarbonization targets
15-30% reduction in financed emissions over 5 years
Phase out fossil fuel project finance
Significant long-term portfolio decarbonization
Green building operations and renewable electricity
50-80% reduction in Scope 1&2
Green and sustainability-linked loan products
Redirects capital to low-carbon activities
The largest global banks continue to finance fossil fuel expansion. Financed emissions are orders of magnitude larger than operational emissions.
Financed emissions are the greenhouse gases produced by companies and projects that a bank funds through loans and investments. For large banks, financed emissions are 100-700x larger than their own operational emissions.
Banks enable carbon-intensive activities through capital allocation. By directing money toward or away from fossil fuels, banks have enormous leverage over the real economy's emissions trajectory.
The top fossil fuel financiers are primarily US, Canadian, and Japanese banks. The Banking on Climate Chaos report tracks this annually.
The most impactful action is measuring financed emissions and setting portfolio decarbonization targets, followed by phasing out fossil fuel project finance and scaling green financial products.
Data represents global averages for 2023. Actual emissions vary by company, region, and methodology.