Banks and Insurers Struggle to Turn Climate Pledges Into Results

JPMorgan Chase & Co., Allstate Corp. and many of their peers in the US financial services sector have made ambitious climate pledges amid heightened pressure. Poor long-term planning, varying definitions of what terms like “net zero” mean and inconsistent ways to measure progress, however, make it unclear how meaningful those goals are and whether firms are on track to meet them.

Fewer than 20% of financial institutions have made climate transition plans more than a year into the future, a recent survey indicates, and even the most aggressive pledge-takers have struggled to spell out their long-term commitments.

Allstate, for ...