Banks face ‘penalty for just being in the room’ as climate debate turns political

A former UN environment head has called on banks to “stand up for what they believe in”, and not bow to political pressure to backtrack on their climate commitments. The former secretary of the UN’s Environment Management Group also criticised UN-led climate alliances such as Gfanz for making it easy for firms to tout their climate credentials without being penalised for “not doing anything”.

The UN-led principles for responsible banking and investment, the Glasgow Financial Alliance for Net Zero, and industry groups under Gfanz all have one thing in common, according to Satya Tripathi, who is now secretary-general of the Global Alliance for a Sustainable Planet: “There was no penalty for being in the room and not doing anything.” He spoke to The Banker on the sidelines of Climate Week NYC in New York.