Advertisement
Environment

Banks with net zero targets are ‘actively lobbying against’ climate policies

While 97 per cent of the world’s top financial institutions have net zero targets, none have fossil fuel financing policies in line with official net zero pathways.

The world’s biggest financial institutions are undermining their net zero targets with continued support for the fossil fuel industry, a new report has claimed. 

A study of the world’s 30 largest financial institutions by think tank Influence Map has revealed they provided a collective $740bn for fossil fuel production in 2020/21, while half are members of industry groups which have lobbied directly against climate policy.

While 97 per cent of the institutions (29) have set net zero targets, none have fossil fuel financing policies in line with net zero pathways outlined by the International Energy Agency (IEA) or the Intergovernmental Panel on Climate Change (IPCC), the report found.

Activist investor Sir Christopher Hohn said any bank making a net zero promise while “actively lobbying against necessary climate regulation” was guilty of “greenwashing”.

The study compared the net zero pledges of the institutions with their financial activity and other interests. Barclays, HSBC and Santander were all included in the analysis. 

While the report noted a significant increase in public support for climate action among finance institutions, it found a “disconnect” between words and action, with a collective $740 billion in fossil fuel financing enabled by the institutions over the past two years.

Advertisement
Advertisement

J.P. Morgan was found to be the biggest enabler of fossil fuel financing, contributing $81bn in 2020/21. The bank also increased its coal financing from $1.28bn in 2020 to $3.08bn in 2021.

Influence Map found significant conflicts of interest between financial institutions’ net zero pledges and membership of industry groups lobbying against climate policy. 

All 30 institutions remain members of associations which have “consistently lobbied to weaken key sustainable finance policies”, while 15 are members of real-economy industry associations which are “key blockers of action on climate change”, lobbying directly in line with fossil fuel interests. 

Subscribe to The Big Issue

From just £3 per week

Take a print or digital subscription to The Big Issue and provide a critical lifeline to our work.

This includes the US Chamber of Commerce and the American Gas Association.

Net zero pledges were found to be lacking in some institutions, with only 11 setting concrete decarbonisation targets across sectors for 2030 in line with the Glasgow Financial Alliance for Net Zero (GFANZ) pact signed at COP26.

The pact is based on evidence from the IPCC and IEA which have both said that lowering emissions by 2030 will be essential to keep global warming within manageable limits.

The Big Issue Shop

Eco-friendly gift hampers that make a positive impact

The Big Issue has collaborated with Social Stories Club to create limited edition gift hampers. Packed full of treats made by social ventures, this hamper would make the perfect gift for the festive season.

Influence Map senior analyst and report author Eden Coates said: “These global financial institutions have significant economic and political influence, and they are delaying action that is essential to respond to the climate crisis. 

“There is a stark disconnect between what they say about climate change and what they’re actually doing – particularly when it comes to pushing back on policymakers’ attempts to align financial regulation with climate goals.

“If they are serious about achieving their net zero targets, they should set concrete and actionable short-term targets across all aspects of their operations.”

Advertisement

Bigger Issues need bigger solutions

Big Issue Group is creating new solutions through enterprise to unlock opportunities for the 14.5 million people living in poverty to earn, learn and thrive. Big Issue Group brings together our media and investment initiatives as well as a diverse and pioneering range of new solutions, all of which aim to dismantle poverty by creating opportunity. Learn how you can change lives today.

Recommended for you

Read All
Oil giants Shell and BP have been handed £700m of taxpayer cash despite bumper profits
Energy crisis

Oil giants Shell and BP have been handed £700m of taxpayer cash despite bumper profits

Four reasons why net zero is a solution - not a problem - for the energy crisis
Net zero

Four reasons why net zero is a solution - not a problem - for the energy crisis

How to care for your garden during a heatwave and a hosepipe ban
UK Heatwave

How to care for your garden during a heatwave and a hosepipe ban

Here's how to cool down at home when heatwaves hit
Heatwaves

Here's how to cool down at home when heatwaves hit

Most Popular

Read All
All the places where kids can eat free during the summer holidays
1.

All the places where kids can eat free during the summer holidays

This Twitter bot is exposing celebrities taking three-minute private jet flights
2.

This Twitter bot is exposing celebrities taking three-minute private jet flights

Will free school meals and vouchers be offered over the summer holidays?
3.

Will free school meals and vouchers be offered over the summer holidays?

Estate agents caught saying they don't rent homes to people on benefits
4.

Estate agents caught saying they don't rent homes to people on benefits

Keep up to date with the Big Issue. The leading voice on life, politics, culture and social activism direct to your inbox.