LONDON, Feb 10 (Reuters) – European banks danger jeopardising the trail to net-zero carbon emissions and the expansion of renewable power until they cease straight financing new oil and fuel fields this 12 months, buyers managing belongings price greater than $1.5 trillion stated on Friday.
ShareAction stated it had made the demand in letters despatched to the heads of Barclays (BARC.L), BNP Paribas (BNPP.PA), Credit score Agricole (CAGR.PA), Deutsche Financial institution (DBKGn.DE) and Societe Generale (SOGN.PA).
The accountable funding group, which is coordinating the letters, stated the investor signatories embody Aegon Asset Administration, La Francaise Asset Administration and Britain’s Native Authorities Pension Scheme.
ShareAction stated the 5 banks it had contacted and Britain’s HSBC (HSBA.L) rank as the most important European financiers of the highest oil and fuel firms increasing manufacturing between 2016 and 2021.
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Nevertheless, HSBC stated in December that it will cease straight financing new oil and fuel fields, becoming a member of different banks limiting asset financing, ShareAction famous.
“Traders are placing these banks on discover that they may face ever-increasing stress in the event that they don’t act quickly to reverse their financing of latest oil and fuel,” stated ShareAction’s Jeanne Martin.
A Barclays spokesperson stated the financial institution believed it may make the best distinction by working with prospects and purchasers as they transition to a low-carbon economic system.
“This consists of many oil and fuel firms which are actively engaged and important to the transition,” the spokesperson stated, including that Barclays was decreasing its financed emissions from power.
BNP Paribas stated in an electronic mail that it had introduced new targets final month to “speed up the transition to a low-carbon economic system”, together with ending financing of latest oil and fuel exploration and manufacturing and slicing fuel publicity.
Credit score Agricole stated it had already ended financing of latest oil extraction tasks and that it had a plan to achieve carbon neutrality by 2050.
Societe Generale declined to remark, however a spokesperson stated the financial institution would assess the letter as soon as its executives had obtained a replica. The spokesperson pointed to the French financial institution’s targets to cut back publicity to grease and fuel manufacturing by 2025.
Deutsche Financial institution stated it had “considerably diminished” its engagement in carbon-intensive sectors since 2016 and had agreed targets for lowering financed emissions by 2030 and by 2050.
“We’re centered on supporting our prospects of their transformation in the direction of turning into carbon impartial,” the financial institution stated in an emailed assertion.
Though banks have been tightening their lending standards for fossil fuels as a part of pledges to chop financed carbon emissions to zero by 2050, environmental teams say they’re doing too little, too late.
The Worldwide Power Company stated in 2021 that funding in new oil, fuel and coal provide tasks should be halted to attain net-zero emissions by mid-century.
Reporting by Tommy Reggiori Wilkes
Modifying by Alexander Smith and David Goodman
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