WBA report finds most banks and asset managers lack credible fossil fuel phase out plans for low-carbon transition

A new assessment from the World Benchmarking Alliance (WBA) shows that 400 major financial institutions, including BlackRock, HSBC, and Allianz, are still not moving capital fast enough toward a low-carbon economy. While over a third have started transition planning, only 2 out of 400 have robust commitments to phase out fossil fuels: ING and Zürcher Kantonalbank. The report highlights that most banks, insurers, and asset managers lack short-term sectoral targets aligned with a 1.5 degree pathway. Low-carbon activities make up just 2.7% of total financed activities on average across the 400 institutions. Only 15% disclose their financed fossil fuel exposure. The WBA warns that without credible transition plans linked to capital allocation, financial systems remain exposed to fossil fuel volatility and economic instability.