: Big investors ask banks to get serious on climate change

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A group of 35 major global investors managing a total of $11 trillion in assets have asked banks to set “enhanced” pledges to make sure their lending practices are aligned with tougher emission targets, according to Reuters.

  • The signatories notably include Allianz unit Pimco
    ALV,
    +0.69%
    ,
    the world’s largest bond investor, and Legal & General
    LGEN,
    -0.25%
    ,
    the U.K.’s biggest investment fund.

  • The group wants banks to set interim targets to get to net-zero emissions by midcentury or sooner.

  • Bankers’ pay should include an element indexed on attaining the targets, they say.

  • The investors also ask banks to set “explicit criteria” for pulling out of what they call “misaligned” activities — those running counter to the net-zero ambition.

Read: U.S. and China agree to cooperate on climate crisis with ‘urgency’

The outlook: The call comes on the eve of the virtual summit on climate with 40 world leaders convened by President Joe Biden this week. And even if some of the world’s largest banks have already committed to reach a zero-emission target by 2050, it will sound as a warning to most of the banking industry. 

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