Although every bank questioned has committed to achieving net-zero, the study reveals a notable discrepancy in their short-term goals, with just six banks establishing explicit criteria for short-term emissions reduction, according to ESG News. Instead of focusing on complete cutbacks, these objectives frequently favor intensity-based reductions, which leaves important sectors like chemicals and agriculture inadequately covered. Notably, none of the banks have set particular goals for the chemicals industry, and only one has done so for the agriculture sector.

The banks' fossil fuel policies are also under examination; while more than 75% of the banks have phased out coal, these policies are criticized for favoring current customers over environmental sustainability. There is a disconnect between policy and practice that is more focused on customer retention than climate urgency, since only a small number of banks prohibit funding new oil and gas projects or compel their clients to submit transition plans.

With banks receiving an average score of only 35% for biodiversity initiatives and 48% for climate activities, the research shows an even more alarming trend in biodiversity. The banks are criticized in the study for failing to fully include biodiversity issues into risk assessments and for not having specific, achievable biodiversity objectives. Many banks lack the necessary resources to properly evaluate or lessen their effects on biodiversity as a result of the insufficient use of instruments such as the Integrated Biodiversity Assessment Tool (IBAT).

The validity and efficacy of green financing projects are also questioned in the study. Despite the fact that 24 banks have established goals for green finance, concerns about greenwashing have arisen due to the lack of thorough external audits. These issues are made worse by inconsistent reporting and ambiguous standards for what constitutes green financing activity.

The research calls on banks to implement more stringent fossil fuel and biodiversity policies with measurable goals in order to close these disparities. It promotes greater use of the instruments now available to evaluate environmental implications thoroughly and urges for increased openness and external monitoring of green financing transactions.

The banking industry in Europe is at a turning point in the struggle against biodiversity loss and climate change. The report's conclusions highlight how urgently banks must adjust their business plans to meet global sustainability targets in order to make a significant impact.