Insight - Europe’s biggest banks warn of major flaw in a key ESG metric

Germany’s Commerzbank AG said the green ratios of some banks might look lower due to the specialised lending they do, or because of the regions to which they cater.

IT’S meant to be the ultimate metric for gauging how clean European banks are. But some in the industry say it will be flawed from the get-go.

The European Union’s (EU) planned Green Asset Ratio, intended to reveal how much a bank lends to climate-friendly companies and projects, will offer a distorted picture of reality, according to a Bloomberg survey of some 20 major European banks.