Banks heavily finance oil firms despite climate goals: study

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Pedestrians stroll previous the brand for HSBC exterior a neighborhood department financial institution in Hong Kong on August 2, 2021. (Photograph by ISAAC LAWRENCE / AFP)

LONDON, United Kingdom (AFP) – European banks, whereas pledging to deal with carbon emissions, are closely financing firms concerned within the enlargement of oil and gasoline manufacturing, activist group ShareAction mentioned on Monday.

A complete 25 lenders, led by HSBC, Barclays and BNP Paribas, final 12 months supplied fossil gas teams with a complete of $55 billion (48.5 billion euros), ShareAction mentioned in a report.

The activist group urged buyers to make use of their shareholder rights to push banks to exclude finance for oil and gasoline enlargement.

“Final 12 months, shareholders have been instrumental in pushing banks to undertake or strengthen restrictions on coal finance,” mentioned Kelly Shields, senior officer for banking requirements at ShareAction.

“This 12 months, they should replicate that success with oil and gasoline enlargement.”

Responding to the findings, HSBC mentioned in a press release that it was dedicated to working with its “clients to realize a transition in direction of a thriving low-carbon economic system”.

Barclays mentioned it continued to deal with its “ambition to turn out to be a internet zero financial institution by 2050”.

Signage is seen exterior a department of British financial institution Barclays in central London on July 28, 2021. – British financial institution Barclays mentioned Wednesday that first-half internet income surged on lower-than-expected credit score losses, as the worldwide economic system reveals indicators of restoration from the pandemic. (Photograph by Tolga Akmen / AFP)

It mentioned that it has “restrictions across the direct financing of recent oil and gasoline exploration initiatives within the Arctic or financing for firms primarily engaged in oil and gasoline exploration and manufacturing on this area”.

ShareAction mentioned there was little proof to indicate that banks need to assist purchasers to transition away from fossil fuels.

“ShareAction’s analysis discovered that Danske Financial institution and NatWest are the one (European) banks publicly requesting a few of their oil and gasoline purchasers to publish transition plans by a set date”.

It mentioned that France’s La Banque Postale is the one lender to require purchasers to rule out oil and gasoline enlargement.

Reacting to the examine, BNP Paribas mentioned it supplied main finance to European power firms displaying “robust funding within the growth of renewables”.

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