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Dear subscriber,
This year's unique season of remote Annual Meetings continued this month, turning up some seismic results on climate change for banks on both sides of the Atlantic.
At the AGM of JPMorgan Chase, an unprecedented 49.6% of shareholders voted in favour of a resolution asking the bank to produce a report on whether and how it plans to align its business with the goals of the Paris Agreement.
And at Barclays, 24% of shareholders voted for ShareAction’s resolution asking the bank to phase out financing for fossil fuels and utility companies that are not aligned with the Paris climate goals - meaning the bank will need to formally respond to its shareholders.
As Catherine Howarth, chief executive of ShareAction, commented, the vote "sends an unequivocal signal not just to the board of Barclays but to the entire global banking sector that all banks must start to phase out fossil fuel financing."
We've have been commenting extensively on most large bank AGMs on Twitter over at @nofossilbanks - follow us there for regular updates.
Also in this month's newsletter, some varying steps forward on fossil fuels from banks in Australia, France and Japan, and a new tool from us to keep track of bank progress towards the full fossil fuel exit that is so urgently required.
With best wishes,
The BankTrack Team.
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Banks in this digest
Barclays
BNP Paribas
Credit Suisse
JPMorgan Chase
Mitsubishi UFJ/MUFG
Mizuho
Natixis
SMBC
Standard Bank
UBS
Westpac
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BankTrack unveils new bank policy assessment tables, integrating "Banking on Climate Change " findings to bank profiles
BankTrack, May 29
BankTrack is publishing a new set of bank policy assessments on its website. The policy assessments, covering the fossil fuel finance policies of 49 banks, use a new new format which will now be rolled out for BankTrack's upcoming policy assessments. This will allow for easier comparison of banks' progress in different campaign areas, from climate and energy to forests and human rights.
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BankTrack publishes 2019 Annual Report
BankTrack, May 14
BankTrack released its Annual Report over 2019, detailing how we worked towards our mission to stop banks from financing harmful business activities, promote a banking sector that respects human rights and contributes to just societies and a healthy planet, and to support others in civil society who share these aims... Read more...
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BNP Paribas bids farewell to coal-fired power, but fails to exclude the rest of the coal sector
BankTrack, Friends of the Earth France & Reclaim Finance, May 12
After years of hemming and hawing, BNP Paribas has specified its phase-out requirement for the coal power sector (1). Specific provisions in the updated policy include extending the 2030 coal phase-out deadline to OECD countries outside the EU and excluding coal plant developers. Not included are measures to... Read more...
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265 Civil society groups call on Chinese actors to ensure that Covid-19 financial relief does not bail out harmful projects
Inclusive Development International, BankTrack and others, May 1
BankTrack has joined 265 civil society groups around the world in calling upon the Chinese government and state actors, including banks, to ensure that Covid-19 related financial relief for struggling Belt and Road Projects flows only to high quality overseas investments that meet stringent criteria aimed at protecting people and safeguarding the environment. Read more...
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Inga III, Democratic Republic of the Congo
Planned for decades, this megadam is expected to cause physical and economic displacement and impact biodiversity and marine life. The stated cost of Inga III is US $14 billion. It is expected that the project will be financed through a 75% debt and 25% equity structure, although this is subject to change. View the profile here.
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Civil Society news on banks
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New report: Credit Suisse and UBS still enable a tremendous amount of CO2 emissions
Greenpeace Switzerland, May 27
The Greenpeace report ‘’Still Wrecking the Climate’’ shows that Credit Suisse and UBS, despite their commitments to climate protection, have been financing fossil fuel companies with billions of dollars in the four years after the adoption of the Paris Agreement, and they do not shy away from financing particularly climate-damaging sectors like tar sands, fracking and coal. Read more...
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This shareholder season, investors are pushing Wall Street on climate action
Sierra Club, May 27
It’s spring, which means warmer weather, trees in bloom, and, of course, shareholder meetings. Every spring, the leaders of banks and other large corporations meet with their shareholders to answer questions about their leadership and business practices, hold votes on resolutions, and elect their board of directors. Over the past few years, these meetings have become important opportunities for investors and activists... Read more...
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International petition: Japan must not support Vung Ang 2
350.org Japan, Friends of the Earth Japan, Kiko Network & The Asian Peoples, May 26
Japanese environmental NGOs submitted a petition for the cancellation of the Vung Ang 2 Coal-fired Power Generation Project in Vietnam to the Japanese public and private sectors. The petition was signed by 127 organizations from more than 40 countries and regions. The recipients include three megabanks that are considering financing the project: Mitsubishi UFJ, Mizuho and SMBC. Read more...
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Natixis exits coal but remains stuck in shale oil & gas
Reclaim Finance, May 19
Just two days before its Annual General Meeting, Natixis made new commitments on coal and shale oil & gas. Reclaim Finance welcomes the steps on coal but deplores the lack of ambition with oil & gas. If the bank gets out of coal, the measures announced on shale oil & gas suggest a withdrawal from the riskiest activities but the continuous support for the more profitable ones. Read more...
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'Investor Toolkit on Human Rights' outlines roadmap for addressing risks to people
Investor Alliance for Human Rights, May 19
The Investor Alliance for Human Rights has published a new Investor Toolkit on Human Rights for asset owners and managers to address risks to people posed by their investments. This comes in the midst of the current international COVID-19 crisis, where systemic economic and social inequalities across societies have been laid bare and exacerbated, and the precarious foundation that financial markets rely upon is evident now more than ever. Read more...
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JPMorgan Chase faces unprecedented vote against its financing of fossil fuels
350.org, New York Communities for Change, Rainforest Action Network & Sierra Club, May 19
At the bank’s virtual annual shareholder meeting, JPMorgan Chase faced multiple questions on climate change as well as pressure to remove climate change denier and former Exxon CEO Lee Raymond from its board. 49.6% of shareholders voted to require Chase to produce a plan to align its business with the goals of the Paris Agreement. Read more...
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MUFG falls behind peers in new ESG finance policy announcement
Rainforest Action Network, May 19
Japan’s largest bank, Mitsubishi UFJ Financial Group, released a revised Environmental, Social and Governance financing policy today, but fell short of its global and domestic peers –– most notably Mizuho Financial Group and Sumitomo Mitsui Financial Group. Read more...
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24% of shareholders voice dissent at Barclays’ current fossil fuel support
ShareAction, May 7
At Barclays’ AGM, nearly 24% of shareholders voted for ShareAction's resolution asking the bank to phase out financing for fossil fuels and utility companies that are not aligned with the Paris climate goals. Read more...
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Westpac quits thermal coal by 2030
Market Forces, May 4
Westpac’s Climate Change Action Plan Update has been described as another nail in the coffin of thermal coal by Market Forces. The policy commits the bank to being out of thermal coal mining by 2030, while the emissions-intensity target set for the bank’s power generation lending effectively squeezes out new coal while making it almost impossible to finance new gas power plants. Read more...
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JPMorgan Chase demotes former Exxon CEO Lee Raymond from Board leadership role
Stop the Money Pipeline, May 2
Bowing to pressure from climate and shareholder activists, JPMorgan Chase will be demoting former Exxon CEO Lee Raymond from his Lead Independent Director position on the bank’s board. The news was buried in a filing with the SEC released on Friday. Read more...
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- 155 companies urge governments to enact net zero emissions recovery from COVID-19, 26 May, SDG Knowledge Hub
- A major oil pipeline project strikes deep at the heart of Africa, 21 May, Yale Environment 360
- What will it take to cool the planet? Bill McKibben's newsletter, 21 May, The New Yorker
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Tell Standard Bank and Sumitomo Mitsui Banking Corporation:
Don’t finance the East Africa Crude Oil Pipeline!
A new deal between oil companies could bring the East Africa Crude Oil Pipeline a step closer.
With Standard Bank's and SMBC's AGMs coming up, tell the banks & their shareholders to protect people and wildlife!
Sign here. #StopEACOP. |
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