Seven Ways Banks Can Lead on Climate

Climate change is not just a future concern, it is a present reality accelerating across our communities and ecosystems. To protect our communities and our planet, we must reimagine and redesign our economic systems to prioritize climate action, equity, and long-term wellbeing for all. Financial institutions have a critical role to play in this transformation.

This Earth Day, we are calling for bold, systemic change in the banking sector to meet the moment’s urgency and help shape a future where people and the planet can thrive.

At Beneficial State Foundation, we believe finance must serve the public good. The way capital flows through our financial system determines which communities have access to opportunity, which industries grow, and how our natural world is protected. That is why we are spotlighting the role banks play in either accelerating climate solutions or exacerbating environmental harm.

Banks shape the future. Their decisions on what to fund directly impact the health of our ecosystems, the resilience of frontline communities, and the speed of the clean energy transition. To build a regenerative and just economy, banks must move away from extractive, profit-at-any-cost practices and invest in climate solutions rooted in equity and accountability.

So what does climate-aligned banking look like?

Here is what we believe every bank should be doing right now:

1. Join (and remain part of) the Net-Zero Banking Alliance

Banks must commit to aligning their lending and investment portfolios with net-zero greenhouse gas emissions by 2050. The Net-Zero Banking Alliance, a UN-convened and bank-led initiative, provides a clear pathway for setting science-based targets and aligning finance with climate goals.

2. Publish Transparent Climate Reports 

The IFRS S2 Climate Related Disclosures offers a global standard for evaluating and disclosing climate-related financial risks. Transparent reporting ensures accountability and builds public trust.

3. Prioritize Climate Leadership and Accountability Across the Organization

Banks should embed sustainability at all levels by appointing a Chief Sustainability or ESG Officer reporting to the CEO, creating board-level ESG commitments, and building internal working groups focused on climate action. Staff and boards must receive regular training on climate justice, the importance of biodiversity, and best sustainability practices.

4. Develop and Publish Net-Zero Transition Plans

Financial institutions need clear, actionable plans to decarbonize their portfolios. These plans must be science-aligned, equity-centered, and rooted in community resilience. Ceres offers resources to guide this transformation.

5. Join Peer Learning Networks like B Corp and the Global Alliance for Banking on Values (GABV)

These networks are redefining banking with purpose, impact, and collaboration. They offer tools, shared accountability, and a platform for banks to prioritize sustainability, transparency, and equity.

6. Embed Equity into Strategies to Advance Climate Justice

Climate action must advance racial and economic justice. Banks must design policies and practices that center frontline communities and address the disproportionate impact of climate change on marginalized groups.

7. Mobilize Public Accountability and Climate Advocacy

Bank leaders must use their voices and influence to support policies and partnerships that advance climate solutions. Campaigns like Protect Our Winters – Climate Finance and Rainforest Action Network – Defund Climate Change empower the public to demand more from financial institutions.

Every financial decision shapes our world. Where we bank, what we fund, and how we invest either deepens the climate crisis or supports the solutions our communities and planet urgently need.

This Earth Day, we call on banks to lead with accountability, and we encourage our communities to demand that our money serves a just and sustainable future.

It is time to move capital away from practices that harm people and the planet, and toward investments that heal, restore, and uplift.