Financial giants are still backing dirty energy, despite net-zero pledges
"Financial institutions want to have their cake and eat it too." That's how Dr. Daniel Klier, CEO of South Pole, summed up a new report on how big banks and investors are handling clean energy goals.
What's happening?
South Pole's 2024/25 Net Zero Report surveyed 350 financial firms across 13 countries. While 44% said they plan to increase investments in clean energy, 72% admitted they have no plans to reduce their dirty fuel holdings for the next decade.
In other words, firms are ramping up green PR — but still pouring money into oil, coal, and gas.
Dr. Klier said many institutions are trying to balance short-term returns with long-term sustainability goals. The report calls this strategy a "tightrope," one that's at odds with real progress.
Insurance companies seem to be ahead of the curve. Dame Inga Beale, chair of South Pole's board, said insurers are setting stricter pollution standards than other finance groups and are better positioned for the future.
Why does this contradiction matter?
Dirty fuel investments keep high-pollution industries alive. The more cash they get, the longer they delay a switch to less expensive and cleaner energy like wind, solar, and hydro.
That delay has real consequences: more overheating, worse air quality, and longer-lasting health problems, especially for families who live near industrial zones or rely on already fragile power grids.
The contradiction also makes it harder for people to trust clean energy promises from the companies holding the most money and influence.
Get started
Want to avoid giving your money to dirty energy? Many credit unions and banks now let you track how your deposits are used, including whether they help fund clean energy or support more drilling. Tools like Bank.Green and Mighty Deposits make it easy to compare.
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What's being done about it?
Even though 86% of firms say they're on track to meet net-zero goals, nearly half point to vague or inconsistent rules as a reason they're dragging their feet.
Stronger financial regulations — like full pollution disclosure and dirty fuel divestment policies — could close the gap between what companies say and what they fund.
"Those who proactively manage risk today will be better positioned for success tomorrow," she said, pointing out the insurance sector's more stringent decarbonization standards.
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