Fewer than half of Belgium's banks are on track to meet their climate commitments under the Paris Agreement, according to a new report published on Wednesday by L’Echo and De Tijd.
The study, carried out by Belgian sustainability consultancy Climact on behalf of the Federal Public Service (FPS) Environment, found that only four out of ten banks (38%) have climate plans aligned with the Paris targets for at least one of their activities.
The Paris goals aim for carbon neutrality by 2050 and to keep global warming well below 2°C, ideally capped at 1.5°C. But researchers found that most Belgian banks are still far from meeting those ambitions.
Climact reviewed the climate strategies of 13 Belgian banks, including the country's four major players, and interviewed sustainability teams at 11 of them. Under new EU transparency rules, banks are required to publish detailed sustainability reports outlining how they plan to reduce emissions from both their own operations and those of their clients.
The findings show that six in ten banks have set short-term environmental targets, such as boosting green loans or offering sustainable investment products,but these goals are not explicitly tied to the Paris Agreement and often lack measurable impact.
Five banks, meanwhile, have yet to establish any concrete climate targets at all.
Researchers say part of the problem lies in data collection, as many institutions struggle to measure the carbon footprint of their clients' activities. Inconsistencies between regional policies also make it harder for banks to coordinate climate strategies effectively.
The report comes just weeks before the COP30 climate summit in Belém, Brazil, where global financial institutions are expected to face renewed pressure to align their portfolios with the world's climate goals.
