Only Two Banks Count Farm Emissions in Climate Targets Despite $159bn Agri‑Food Lending

Only two of the 25 banks surveyed count agricultural emissions in their climate targets, despite extending $159 billion in loans and underwriting to major meat, dairy and rice firms.

The Planet Tracker analysis surveyed lenders to the top 15 meat, dairy and rice companies, which together generate about 1.3 million metric tons of methane each year. Methane drives roughly 30 % of current warming and is more than 80 times stronger than CO₂ over a 20‑year span. Agriculture, especially livestock and rice, supplies about 40 % of global methane emissions.

Barclays (BCS) and Rabobank are the only banks that have placed agricultural sector emissions inside their climate frameworks. Barclays sets UK‑specific dairy and livestock targets, while Rabobank covers ten agricultural sectors and pledges to “significantly reduce” methane by 2050, though neither publishes a medium‑term (e.g., 2030) reduction goal. In contrast, all surveyed banks maintain emission targets for other high‑polluting sectors such as energy and transport.

Financing details reveal the scale of exposure. JPMorgan Chase (JPM) traded at $180.25, up 1.2 % today, with a market cap of roughly $420 billion. HSBC Holdings (HSBC) sat at $38.10, up 0.5 %, market cap near $150 billion. Citigroup (C) traded at $70.45, up 0.9 %, market cap about $140 billion. Barclays (BCS) was priced at $1.20, up 0.8 %, market cap around $38 billion. Together, the 25 banks extended $159 billion in loans and underwriting to the agri‑food borrowers, with bonds representing an estimated 96 % of the firms’ total debt.

The report notes a key distinction: financed debt appears on banks’ balance sheets, while facilitated debt—such as arranging bond issuance or syndicating loans—does not, yet both contribute to borrowers’ scope 3 emissions under the latest PCAF standard. Most banks limit their climate targets to financed emissions only, allowing them to facilitate debt for high‑emitters without triggering disclosure rules. Report author Ailish Layden urged banks to “use their leverage to reduce these emissions by restricting or withdrawing finance from companies that fail to act.”

What to watch next: whether regulators or industry groups will push banks to adopt quantitative methane targets that cover both financed and facilitated lending, and how the upcoming revisions to the GHG Protocol might alter disclosure expectations for agricultural scope 3 emissions.