Tracking the Transition: Global Private Financial Institutions’ Progress Toward Net Zero
Financial Institutions (FIs) play a crucial role in enabling the global shift to low-carbon and resilient economic pathways. As owners and financiers, their decisions determine whether the economy will successfully transition or remain dependent on high-emission, vulnerable systems.
Report Overview
Using data from CPI's Net Zero Financial Tracker (NZFT), this report evaluates the transition progress of 1,500 private FIs across 67 countries. While scaling investments for climate transition and realizing its economic and environmental benefits is possible, it demands central involvement from financial institutions.
Challenges in the Climate Transition
Progress is evident, yet recent developments raise concerns. Since late 2024, several major FIs have exited climate coalitions. Additionally, the Net Zero Banking Alliance was disbanded, and the Net Zero Asset Managers Alliance underwent revisions in 2025, marking notable setbacks.
Even as political backlash and regulatory uncertainty have led some institutions to reconsider their public climate commitments, many continue to view decarbonization as vital for sustainable growth and risk reduction.
Future Outlook
The global move toward decarbonization is underway. Financial institutions that accelerate their efforts and maintain commitment to net-zero pathways will likely gain the most from this transition. Banks and asset managers must adapt to evolving market demands and regulations favoring sustainability, as carbon-intensive assets face declining value.
Author's summary: Financial institutions are pivotal in achieving net zero, yet recent coalition withdrawals and regulatory shifts pose challenges; sustained commitment will determine future success.