Banks are snubbing the climate pledges they made.
In April, they indicated they understood that they have an important role in the transition away from fossil fuels, and many signed up to the United Nations-backed Net-Zero Banking Alliance, which requires they set targets to reduce carbon emissions.
However, activist group ShareAction said on Monday that their analysis showed that twenty-five of the said banks have provided $33 billion (£24 billion) in loans and other financing to 50 companies with large oil and gas expansion plans. The oil & gas companies include America’s ExxonMobil, which have tried to defy shareholder demands to cut emissions, state-owned oil company Saudi Aramco and London-listed Shell and BP who have made huge profits from energy price increases in recent months.
More than half ($19 billion) of the financing since the net zero agreement came from four of alliance’s founders. They were London-headquartered HSBC and Barclays, France’s BNP Paribas and Germany’s Deutsche Bank.
HSBC, Barclays and BNP Paribas also provided the most finance to these companies since 2016, at $59 billion, $48 billion and $46 billion respectively.
The banks’ broken promises mean they are giving all of us the one-finger salute.
