Last year, the world’s 60 largest private banks provided over $700 billion in loans and underwriting to fossil fuel companies, according to a report released by several environmental groups on Monday.
While bank funding for oil, gas, and coal has seen a slight decrease since 2021, environmentalists argue that the reduction is not happening quickly enough.
Environmental groups have been pushing for increased pressure on financial institutions funding the fossil fuel industry in order to accelerate the transition to clean energy. The incorporation of ESG (environmental, social, and governance) principles into the strategies of many large financial institutions in recent years has shown some progress in climate change advocacy.
Despite these efforts, banks worldwide continue to finance both new and existing fossil fuel-related projects. Since the ratification of the Paris Agreement in 2016, banks have lent an estimated $7 trillion to fossil fuel interests.
JPMorgan Chase was identified as the largest investor in fossil fuels for the third consecutive year, increasing its commitment from $38.7 billion in 2022 to $40.8 billion in 2023.
While some banks have raised concerns about the report’s methodology, experts suggest that the overall analysis is reasonable. However, there are lingering doubts about the inclusion of sustainability-linked bonds issued to fossil fuel companies as fossil fuel-related transactions.
Mizuho Financial Group and Bank of America rank closely behind JPMorgan Chase as major fossil fuel investment companies. Mizuho has focused on methane gas, with Japanese banks committing significant funds to gas expansion projects.
Advocacy groups are planning protests on Wall Street this summer to urge banks to stop financing fossil fuel companies. The protests are part of the Summer of Heat campaign, targeting banks like Citigroup for their financial support of fossil fuel interests.
Citigroup, which has contributed billions to fossil fuel interests since 2016, aims to transition to a low-carbon economy and reduce carbon emissions from its activities to zero by 2030.
Protesters will continue to target Citigroup in June, emphasizing the need for financial institutions to divest from fossil fuels and transition to sustainable investments.
Source: www.nbcnews.com
