Global banking giants sign up to climate principles

Carbon intensive projects could be forced to disclose their greenhouse gas emissions and adopt the cleanest technologies available, if they wish to secure financial backing from some of the world's largest financial institutions.

The move follows Crédit Agricole, HSBC, Munich Re, Standard Chartered and Swiss Re signing up to a new set of green investment best practices.

The banks and insurers have today pledged to adhere to The Climate Principles, which have been developed by The Climate Group and will require financial institutions to consider the carbon impact of their investment decisions and services.

Under the principles, firms financing capital projects will request that clients disclose project greenhouse gas emissions and seek reduction and offset solutions wherever possible.

Investment banks will also agree to bolster their ability to offer financing to low-carbon technologies, while insurance firms will advise on climate change adaptation and mitigation.

The banks have also agreed to build up their expertise to support trading in emissions, weather derivatives, renewable energy credits and other climate related commodities.While the principles are voluntary, those companies signing up to them will be required to report annually to a steering committee on their compliance with the standards.

Steve Howard, chief executive of The Climate Group, said that the group would be looking for more banks to join the initiative.

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Source: Businessgreen.com