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State of the banking transition 2026

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Listed:
  • Brochard, Algirdas
  • Diaz Puerto, Nelson
  • Hajagos Toth, Akos
  • Jahn, Valentin
  • Martins, Madalena
  • Taylor, Maddy
  • Dietz, Simon

Abstract

The TPI Centre’s State of the Banking Transition 2026 report reviews the progress of 36 large global banks on the low-carbon transition using two assessment tools: the Net Zero Banking Assessment Framework and Carbon Performance for Banks. Our analysis reveals that over a decade after the Paris Agreement, banks remain at an early stage in enabling the transition to a low-carbon economy. Indeed, there are signs of stalling. In the past three years, assessed banks have reduced their low-carbon ambition overall, with some even cancelling their commitments, targets and policies outright. Amid shifting regulatory expectations, the pace at which banks are enabling the low-carbon transition warrants continued scrutiny. This report provides a basis for assessing how banks’ climate commitments and policies are evolving, including where they are being scaled back.

Suggested Citation

  • Brochard, Algirdas & Diaz Puerto, Nelson & Hajagos Toth, Akos & Jahn, Valentin & Martins, Madalena & Taylor, Maddy & Dietz, Simon, 2026. "State of the banking transition 2026," LSE Research Online Documents on Economics 140943, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:140943
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    File URL: https://researchonline.lse.ac.uk/id/eprint/140943/
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    JEL classification:

    • F3 - International Economics - - International Finance
    • G3 - Financial Economics - - Corporate Finance and Governance
    • N0 - Economic History - - General
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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