Planet Tracker 74d ago

Methane is responsible for roughly 0.5°C of current global warming. Over 80 times more potent than CO₂ over 20 years, methane is the fastest lever we have to slow near-term heating. Agriculture, including livestock and rice, generates around 40% of methane emissions, more than fossil fuels. However, banks are failing to act on rising methane emissions in the agriculture sector. Planet Tracker analysed 25 global banks financing 15 of the highest-emitting agri-food companies. These companies generate an estimated 1.3 million tonnes of methane emissions per year and are among the largest emitters in the sector. The banks provide lending and facilitate bond financing, with total exposure of USD 159 billion. Analysis of their policies and targets shows that: All 25 banks have targets for reducing greenhouse gas emissions from the energy sector, but only two include agriculture-specific targets. Only two banks have targets specifically for Agriculture, Forestry, and Other Land Uses (AFOLU) sectors. Only one bank (Deutche Bank) has a policy to withdraw financing from companies unwilling to transition. Only JPMorgan, Barclays and Citi include facilitated emissions within their targets. Bonds (rather than loans) account for 96% of the companies’ debt. However, most banks’ emissions targets apply only to lending, excluding the far greater climate impact of their role in arranging bond financing. Banks should use their leverage to reduce these emissions by restricting or withdrawing finance from companies that fail to act. Planet Tracker recommends that banks adopt robust and credible policies for methane emissions from the food and agriculture sector, covering both financed and facilitated debt.