Despite growing awareness of climate adaptation, the ranking reveals that only seven of the world’s top 50 banks are meeting more than half of the climate adaptation criteria, and none meet all of them. The study found that European and UK banks performed relatively better than their counterparts in the US, Canada, and Australia, driven by stricter climate policies and frameworks in the region. The leading institutions in the ranking include Standard Chartered, Banco Santander, and UniCredit, all of which demonstrated more advanced engagement with climate adaptation strategies.US banks, by contrast, propped up the list, with Morgan Stanley, Capital One, Goldman Sachs and US Bank bottom of the rankings.Lukky Ahmed, CEO of Climate X, comments: “Climate adaptation is no longer a choice for the financial sector - it’s a necessity. Our ranking demonstrates that while some banks are beginning to take steps to prepare for a hotter, more volatile world, the majority have a long way to go. It is vital that banks incorporate adaptation into their strategic decision-making processes and develop products and services that support resilience.”The ranking was conducted using a methodology designed to evaluate the adaptation maturity of banks through 17 qualitative indicators. To assess each bank’s level of preparedness, Climate X analysed the most recent public disclosures from each institution, focusing primarily on their annual reports. A Large Language Model (LLM) was employed to determine how well the banks aligned with the indicators, offering a high-level view of their preparedness for climate adaptation challenges.“The methodology we used gives a comprehensive picture of how these banks are progressing in their adaptation efforts,” said Kamil Kluza, COO of Climate X. “However, it also reveals significant gaps in transparency and action. Most banks are not setting adaptation impact metrics, and few have clear lending strategies that support communities and businesses hit by climate-related disasters.”