Amid shifting political and regulatory priorities, independent tracking is key to understanding risk and sustaining momentum in financial institutions’ transition efforts
- More than 80% of tracked financial institutions by assets under management/owned have adopted some type of climate target
- Implementation actions have strengthened, particularly in climate risk management and disclosure
- However, corporate finance remains fossil-dominant, with 70% of tracked banks’ new energy finance credit going to fossil fuel activities
6 November, London — Financial institutions have more than doubled their adoption of climate targets since 2019, new data from Climate Policy Initiative’s Net Zero Finance Tracker (NZFT) shows.
The latest report, Tracking the Transition: Global private financial institutions’ progress toward net zero, offers the clearest and most comprehensive picture yet of the financials sector’s climate transition efforts. Providing a standardized assessment of 1,500 financial institutions and tracking USD 286 trillion in assets—about 60% of the global financial system—the NZFT platform displays progress across 17 transition indicators at the institutional, country, and global levels.
The release comes at a critical moment for the global financial sector. Last month’s disbandment of the UN-backed Net Zero Banking Alliance and revisions to the Net Zero Asset Managers initiative have sparked widespread debate about the future of voluntary climate coalitions. These developments increase the need for independent, credible tools to monitor risk, progress, and impact.
“As alliances evolve and policy landscapes shift, the need for independent, data-driven insight into how financial institutions are responding to global climate risks has never been greater,” said Dr. Barbara Buchner, Global Managing Director at Climate Policy Initiative. “CPI’s Net Zero Finance Tracker is a tool to bring the clarity of hard data in an uncertain world. It provides a cohesive evidence base that regulators, investors, and institutions themselves need to assess risks, identify gaps, and accelerate action.”
Key findings from the NZFT 2025
Drawing on data from 58 public and proprietary data sources, the NZFT standardizes that data and applies a rigorous methodology to assess financial institutions across three dimensions: Targets, Implementation, and Impact.
Findings show progress across the 1,500 tracked institutions, but also persistent challenges in translating commitments into measurable impact outcomes:
- Climate target adoption more than doubled since 2019, with the percentage of financial institutions with some type of climate target up from 34% of assets under management or ownership (AUM/O) to 82% in 2024, representing USD 233 trillion.
- Implementation actions have strengthened across climate risk management, disclosure, and internal accountability, with well over three–quarters of FIs integrating climate considerations into governance and business processes.
These internal actions have laid the groundwork for some positive movement on clean and transition energy investments, though more progress needs to be made:
- NZFT-tracked direct finance for clean and transition energy projects reached USD 114 billion in 2024, a 130% increase since 2019. While this represents 65% of the total energy project finance tracked, the remaining 35% going to new fossil fuel projects. This goes against main climate scenarios, undermines progress, and exacerbates risks.
- This is the result of large amounts of financing going to expansionist fossil fuel corporates. For example, 74% of private financial institutions’ energy holdings were in fossil fuels, mostly in companies expanding their operations.
Financial institutions are at a turning point: The global financial system both drives and depends on the climate transition, while its long-term stability and growth hinge on accelerating decarbonization rather than remaining tied to high-carbon pathways.
Independent tracking remains essential: With many voluntary industry climate alliances restructuring or winding down, the NZFT is a crucial tool for maintaining transparency, comparability, and accountability across financial systems.
The updated NZFT data platform features our largest and most comprehensive dataset to date. Reach out to CPI’s experts for insights and guidance on its use.
Media contact:
Anitta Banjwa
Senior Communications Associate
anitta.banjwa@cpiglobal.org
