Sustainability

CSRD reporting in the banking industry: a NatWest benchmarking study

08 Dec 2025 . 5 min read

We’ve conducted a comprehensive benchmarking study of 36 major banks across Europe, North America, and Australia to assess their progress in aligning with the Corporate Sustainability Reporting Directive (CSRD) and other global sustainability standards. This analysis draws from FY2024 public disclosures and highlights how banks are operationalising sustainability commitments, responding to regulatory expectations, and evolving their practices.

Key themes and findings

1. Governance and strategy

Over 80% of banks have board-level committees overseeing sustainability.
Executive teams and sustainability officers are central to strategy delivery.
ESG-linked KPIs are increasingly embedded in remuneration, though forward-looking metrics remain limited.

2. Double materiality assessments

72% of banks conducted double materiality assessments in 2024.
Climate change and workforce wellbeing emerged as the most material topics.
Tools like UNEP FI, SASB, and ECB Climate Risk Guide are widely used.

3. Climate metrics and targets

All banks have committed to net-zero by 2050, with 95% setting intermediate targets.
Sector-specific decarbonisation levers include renewable energy, electrification, and sustainable aviation fuels.

4. Sustainable finance frameworks

30 banks have set multi-year sustainable finance targets, often extending to 2030.
Targets include green, social, and transition finance, with increasing EU Taxonomy integration.
Green Asset Ratios (GAR) show upward trends in CapEx and Turnover KPIs.

Emerging themes

Transition plans: 83% of banks have published or embedded transition plans.
Exclusion policies: coal and unconventional oil & gas are widely excluded.
Nature & social themes: banks are integrating biodiversity and diversity targets into frameworks.

Read the full report

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