Europe’s 20 largest banks – together with Barclays, Lloyds, Santander, HSBC and NatWest – are being urged to step up efforts on sustainable finance because the yr involves an in depth.

ShareAction, which campaigns for accountable funding, has written to the banks’ chief executives to name on them to set local weather targets based mostly in science to point out how they’re funding sectors essential for the net-zero transition.

The charity warned the banks that they’ll anticipate to see shareholder motion subsequent yr in the event that they fail to fulfill investor expectations for greener practices.

It comes after ShareAction not too long ago discovered that whereas all 20 banks had set a sector-specific goal for decarbonisation and slicing emissions, solely 9 had set one for sustainable finance – funding for sectors like renewable vitality and infrastructure.

Banks have been additionally not often discovered to offer a breakdown of how a lot sustainable financing they would offer to every sector.

Kelly Shields, senior marketing campaign supervisor at ShareAction, mentioned: “The position that we want Europe’s largest banks to play in financing our transition to net-zero economies can’t be underestimated.

“Except banks act now to extend ambition, the finance wanted to scale up areas like clear vitality and the rollout of inexperienced infrastructure will merely not be accessible.

“Crucially, traders need to see banks set targets grounded in science that clearly present how they’ll finance the sectors like renewable vitality which might be important to transitioning our economies and defending folks from harmful ranges of worldwide heating.

“Banks ought to heed the warning that shareholders will take motion subsequent yr in the event that they fail to fulfill investor expectations of pressing progress on this concern.”

It comes amid rising investor issues over how banks are approaching sustainable finance, with coalitions not too long ago backing statements at annual normal conferences this summer time, urging Societe Generale and HSBC to set key targets for transition sectors.

Katharina Lindmeier, head of sustainability technique at UK office pension scheme Nest, mentioned: “We help ShareAction’s name for Europe’s largest banks to set science-based targets, demonstrating how they’re funding sectors very important to the net-zero transition.

“By embracing renewable vitality and inexperienced applied sciences, banks can contribute to environmental sustainability while unlocking new avenues for development and innovation.

“These sectors will create jobs, drive financial growth, and pave the way in which for a extra resilient and sustainable future.”

A spokesperson for NatWest Group mentioned: “Within the first 9 months of 2024, NatWest Group offered £23.5 billion of Local weather and Sustainable Funding and Financing to our clients and we’re nearby of reaching our ambition to offer £100 billion between July 1 2021, when this ambition was set, and the top of 2025.

“The Share Motion report notes that we’re certainly one of solely two banks that it has written to with an vitality funding provide ratio in step with web zero by 2050.”

A Santander spokesperson mentioned: “The financial institution has set sustainable finance and emission discount targets for 2030 throughout a variety of fabric emitting sectors, and operates strict insurance policies governing our financing selections.

“Now we have been supporting the build-out of renewable vitality capability for many years, however our position can also be to work with purchasers and encourage their transition from brown to inexperienced sustaining vitality safety”.

The PA information company has contacted Barclays, Lloyds, HSBC and Societe Normal for remark.