fbpx

Latest Posts

Sorry, no posts matched your criteria.

Stay in Touch With Us

Odio dignissim qui blandit praesent luptatum zzril delenit augue duis dolore.

Email
[email protected]

Phone
+32 458 623 874

Addresse
302 2nd St
Brooklyn, NY 11215, USA
40.674386 – 73.984783

Follow us on social

Green Is The New Black

35 Global Banks Still Investing Heavily in Fossil Fuels (And What You Can Do About It)

Reading Time: 4 minutes
Share this story:

Despite the Paris Agreement banks show little sign, nor genuine commitment, of slowing their investments in fossil fuels. In fact, spending is ramping up. So which banks are the worst offenders? And what, if anything, can you do about it?

The Intergovernmental Panel on Climate Change (IPCC) has issued repeated warnings of the catastrophic consequences should the world exceed 1.5 degrees of warming. Although nearly 200 nations outlined plans to reduce emissions following the 2015 Paris Agreement, since then banks have done little to positively contribute. In fact, their continued financing of fossil fuels aligns instead with climate disaster.

But as shareholders, regulators, clients, and the general public recognise that banks must be held accountable, will we begin to see systemic change? Here, we take a closer look at the global banks who are failing to take responsibility and mitigate their climate impact. 

What’s the issue?

The Paris Agreement states that finance needs to be “consistent with a pathway toward low greenhouse gas emissions.” But according to the Banking on Climate 2020 report, large global banks aren’t working towards this goal. In fact, they’re failing miserably.

Over the last four years, the world’s largest banks have pumped $2.7 trillion into fossil fuel firms. (This equates to more cash than is currently in circulation across the entire U.S.A.) And financing looks set to increase with American, Canadian, Chinese, European, and Japanese banks leading the way. 

While some have taken steps to mitigate their impact by setting climate-friendly targets, the report states that “overall major global banks have simply failed to set trajectories adequate for dealing with the climate crisis”.

Why does this matter?

To meet the climate targets outlined in the Paris Agreement, by 2030 we must slash carbon emissions by 45% (below 2010 levels). And by 2050, net emissions must be at zero. But this is looking increasingly unlikely without concerted effort and immediate action by banks. Why? Because just 100 companies are responsible for 71% of global emissions. And it’s the banks that continue to fund them, acting as enablers to expand their presence globally.

While we’re being led to the brink of a tipping point, it’s indigenous communities who are paying the price for bank’s failures upfront. We recently reported on the plight of the Canadian Wet’suwet’en clans and the destruction of their native territory thanks to the Coastal Gaslink Pipeline Project. And more recently, President Trump’s administration has finalised plans to open up the Arctic National Wildlife Refuge for oil exploration and drilling.

And that’s before we mention those impacted by increasingly frequent wildfires and hurricanes, and the millions of people forced further into poverty through food scarcity. Put simply, the implications of poor global banking practices isn’t something that *might* impact our planet in future. Their failure to divest from fossil fuels is affecting vulnerable communities and our environment now.

The dirty 30 (well… 35, actually)

We’re naming and shaming #SorryNotSorry. Here’s the reality of just how much cash banks have pumped into financing for over 2,100 companies across the fossil fuel life cycle. Yikes.

 

Data and table courtesy of Banking on Climate Change 2020

Data and table courtesy of Banking on Climate Change 2020

  

A special shout-out to JPMorgan Chase…

According to Forbes, over the last four years, JPM has invested a total of $268 billion into coal, oil, and gas firms; significantly more than any other bank. It also claims the dubious title of the world’s number one bank for fossil fuels (by 36%) and is also the number one banker (by 68%) of 100 top companies expanding fossil fuels. 

Its response? CEO, Jamie Dimon, has publicly declared his support of the Paris Agreement and his opposition to Donald Trump’s withdrawal from the climate accord. Yet he continues to lead the bank further into fossil fuel funding. Can you say hypocritical? In addition, earlier this year, the bank’s shareholders defeated the call for greater climate-change disclosure.

If this makes you feel feisty (*read effing furious*), use this letter toolkit created by the Rainforest Action Network to contact JP Morgan demanding action. 

Banks taking action

It’s not all bad news. In September 2019, 33 banks (who collectively hold $13 trillion in assets) signed the Collective Commitment to Climate Action. It sets out specific and time-bound actions that the signatory banks must take to align their lending with the objectives of the Paris Agreement. These include:

– aligning their portfolios to reflect and finance the low-carbon, climate-resilient economy required to limit global warming to well below 2, striving for 1.5 degrees Celsius;

– taking concrete action, within a year of joining, and use their products, services and client relationships to facilitate the economic transition required to achieve climate neutrality;

– being publicly accountable for their climate impact and progress on these commitments.

See the full list of signatory banks here. The questions is, will these banks back up the intention with real action? Watch this space…

#LittleGreenSteps

You may be reading this thinking WTF can individuals do to influence financial powerhouses. The answer is, a surprising amount. As consumers, we do have power. And it is possible to #MoveYourMoney away from banks that don’t align with your personal values. 

– We recently shared this article on how to divest your money from fossil fuels and unethical businesses. It contains multiple hints, tips, and advice on how to green your bank account, savings, and investments.

Yourethicalmoney.org is an excellent resource to understand how ethical your bank is. And MakeMyMoneyMatter.co.uk is also worth exploring if you hold a UK pension.

– Use this letter toolkit created by the Rainforest Action Network to contact JP Morgan demanding action. You can also use the template and adapt it for your own personal bank.

– Use this letter template created by The Guardian to contact your pension fund asking for clarification surrounding how they are investing your money.

– Read the full Banking on Climate Change 2020 report here.

Love articles like this? Join our weekly newsletter

Be a part of the conscious movement that's making waves across Asia. Drop your email down below and you'll be the first to know what's new. We don't spam, ever.

Help us keep our content free

It seems like you enjoyed our content and are on your way to better understanding how to be more conscious. As you’ll know, we’re on a mission to make sustainability accessible, mainstream and sexy. And we would not be able to do it with you. We would love you to support us even further in our GITNB movement by helping us create even more content to keep inspiring you and the rest of the world. Aside from being able to enjoy even better reads, you’ll also receive a GITNB t-shirt consciously made from upcycled fabrics in partnership with a Cambodian social enterprise supporting women. For a small donation you will make a huge difference.

SUPPORT US HERE
preloader