Pakistani Banks Score Below 2/10 on Climate and Nature Policy Tests
Seven major Pakistani commercial banks averaged just 1.12 out of 10 on climate policy and 1.69 on biodiversity, exposing a critical gap in sustainability commitments.
Seven major Pakistani commercial banks have received failing grades on climate and nature policy assessments, scoring an average of just 1.12 out of 10 on climate policy and 1.69 out of 10 on biodiversity measures, according to findings released November 1 from Bangkok.
The results expose a stark disconnect between the sustainability pledges these institutions have publicly made and the actual financing safeguards they have disclosed. Analysts note that low disclosure scores typically signal that banks lack the internal frameworks needed to screen loans and investments for environmental risk, leaving significant portions of their portfolios potentially exposed to climate-related financial losses.
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Pakistan is among the world's most climate-vulnerable nations, regularly ranked in the top tier of countries facing extreme weather, flooding, and agricultural disruption. The absence of robust climate and biodiversity safeguards in its banking sector raises questions about systemic financial risk, particularly as international development partners and foreign investors increasingly require environmental due diligence from counterpart institutions.
The findings add pressure on Pakistani regulators to accelerate the country's sustainable finance framework. The State Bank of Pakistan has previously issued green banking guidelines, but the survey results suggest implementation at the commercial bank level remains far behind global standards and the expectations set by multilateral lenders.
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