Ceres Releases New Guidelines to Strengthen Climate Finance Targets and Disclosures in U.S. Banking Sector

Ceres has released new recommendations for the U.S. banking sector, focusing on improving climate finance target-setting and disclosures. Despite the growth of green financing opportunities, driven by policies like the U.S. Inflation Reduction Act, there is a lack of consistent methodologies for investors and regulators to assess U.S. banks’ climate-related performance.

In its report, “Ahead or Behind? The State of Climate Finance in the Banking Sector,” Ceres offers guidance on how banks can develop effective climate finance targets, improve disclosures, and adopt best practices.

Key recommendations include:

• Establishing climate-linked targets, products, and services
• Prioritizing the added impact of banking actions
• Adopting consistent accounting methods across metrics and targets
• Defining clear eligibility criteria for sustainable finance activities
• Enhancing the usefulness and consistency of disclosed information
• Aligning with international standards
• Collaborating with other banks to create voluntary disclosure standards.