Banks Vs. The Paris Agreement 2017 Report

ShareAction`s latest ranking shows that the vast majority of European banks` climate change strategies are not in line with the goals of the Paris Agreement: only 35% of banks surveyed say their climate change strategies aim to limit the rise in global temperature to 2°C or less. Worryingly, only 10% of them say they are in line with the most ambitious goal of keeping warming at 1.5°C. Two of its coal-fired power plants, both heavily delayed, are Kusile and Medupi, which, given the company`s financial difficulties, now look like classic white elephant projects. After these projects began, Eskom faces not only serious financial risks, but also excess electricity capacity that South Africa does not need. So far, in 2017, we have seen Rabobank, BNP Paribas, Deutsche Bank, US Bancorp, ABN Amro, PNC and DZ Bank make withdrawal announcements to varying degrees for coal energy financing. These new or updated guidelines exclude direct funding for new coal-fired power plants around the world and some of them go further, also exclude indirect funding of certain coal-fired power plants, or commit to reducing coal funding over time (see the “Best Practices Policies” section below). Here you will find a complete overview of coal deductions from major banks since 2015. On average, the banks surveyed are the worst performers in the section on assessing and managing climate risks (29%), including their position on financing carbon-fired energy such as coal, oil sands and other fossil fuels. While banks have largely stopped financing projects for the coal industry and coal, they are reluctant to end the general financing of coal companies, an area in which their policies are generally non-existent or insufficient. Many banks exclude only new customers, while continuing to support existing customers who rely on coal.

Nineteen of Europe`s twenty largest banks provided information to ShareAction, which they then assessed based on their performance in tackling climate change. The study aims to shed light on the evolution of banks on this issue since 2017, when the last survey was conducted. The average score in this survey is only 39.9%, while BNP Paribas touches the ranking with a score of 63.2%. Banks at the bottom of the ranking, including ItaliansIntesa Sanpaolo, show little indication to limit the adverse effects of their activities on the climate. . . .