According to Asia Research & Engagement (ARE), a Singapore-based environmental group, a review of 32 banks in the eastern and southeastern parts of the continent showed that none had made clear commitments or adequate implementation plans to meet the goals of the Paris climate agreement.
Nearly 200 countries signed a pact in Glasgow last year calling on financial institutions around the world to mobilize more funds to help meet global climate goals and find innovative ways to pay for climate adaptation.
However, according to the research, what is being done so far is not enough. Asian banks are not aligning with national decarbonization policies and have yet to take the necessary steps to meet global climate goals, ARE said.
Also according to the research, financial institutions have launched green products, but are lagging behind in cleaning up their existing stock and carrying out the necessary policies to divert capital away from carbon-intensive industries.
Banks are seeking a marketing benefit for sustainable financial deals while providing higher levels of financing to dirty industries, the report says.
Of the 32 entities investigated in China, Japan, South Korea, Singapore and Indonesia, only nine showed to have long-term net-zero emissions commitments for the goals they re financing, while only 13 had policies that prohibited the financing of new coal-fired energy.