Recourse’s Post

U.S. Regional Banks Increase Fossil Fuel Lending Amid European Retreat As European banks scale back on fossil fuel financing due to stricter climate regulations and litigation risks, U.S. regional banks like Citizens Financial, BOK Financial, Trust Securities, Fifth Third, and US Bancorp significantly increase their loan activities in the oil, gas, and coal sectors. According to Bloomberg data, these banks have climbed the league table, showing a more than 70% average annual increase in fossil fuel loans since early 2022. This shift reflects a strategic seizing of market opportunities as these banks capitalize on relaxed regulations and growing financing needs within the fossil fuel industry, amidst a broader context of changing energy policies and anti-ESG legislation in certain U.S. states. #ESG #FossilFuelFinance #EnergyPolicy #BankingTrends

Some great Australian success stories here.

Are big banks truly committed to climate disclosure? 🏦 The spotlight is on Canada's financial giants as Investors for Paris Compliance raises eyebrows with a securities complaint, casting doubt on the sincerity of RBC, TD, BMO, CIBC, and Scotiabank's sustainability pledges. Despite committing $2 trillion by 2030, the complaint alleges a need for more data to support their claims. 💡 While sustainable finance takes centre stage, the question lingers: Are the big banks merely talking the talk without walking the walk? Critics call for more transparency, demanding tangible evidence to validate these financial institutions' core responses to climate change. Kyra Bell-Pasht from Investors for Paris Compliance emphasises, "We just want to make sure that investors can hold the banks accountable to their claims." As the spotlight on Canada's financial giants intensifies, utilising the right data when disclosing climate-related reporting remains challenging. At Climate X, we empower banks with accurate climate data, enabling them to navigate these challenges and meet regulatory requirements and consumer expectations when disclosing information. Read the full article 👉 https://bit.ly/3Hh1wJ3 #banking #bigbanks #canada #climatedisclosure #climaterisk #finance #sustainablefinance #transparency

🏦 The Bank of England has the power to redirect money away from dirty sectors and towards cleaner, greener ones 💚 For example, it could require banks to hold more capital for reckless fossil fuel lending 💷🔥 or put a lower interest rate on lending to projects like renewable energy or retrofitting 🌞💡 The Bank should start acting like this right now. https://lnkd.in/esAHxV94

Canada's biggest banks don't like her, but I certainly do. Senator Rosa Galvez is a true champ of the people and fighting for our climate through measures like the Climate Aligned Finance Act. She is challenging the myth that one must continue to do business with fossil fuel companies in order to advance the energy transition. The CEOs of the biggest fossil banks like RBC's Dave McKay have been summoned by Canada's House of Commons Environment Committee to respond to why they feel so threatened by CAFA that they sent their association - Canadian Bankers Association - to lobby against it. Watch them on June 13. Do they not want regulation to help them align their banking businesses with fighting the climate crisis? We need more leaders in government like Senator Galvez. #climatefinance #sustainablefinance #banking #oilandgas #climate https://lnkd.in/gA5vdKw6

In this episode, the European Banking Federation CEO shares his thoughts on ending fossil fuel investments and the problem with doing it too quickly. https://lnkd.in/gQzACz3j

A new report from InfluenceMap paints a devastating picture of the role that Canada's Big Five banks are playing in financing #fossilfuels and delaying the energy transition. The lending, underwriting, and advocacy activities of RBC, BMO, CIBC, TD and Scotiabank underscore why Canada urgently needs regulation to align financial institutions with climate commitments. https://lnkd.in/gCzJ6CCT “The Big Five banks have taken little voluntary action to align their business practices with their own net-zero commitments,” says the report by InfluenceMap. "This narrative placing banks outside of the shaping of the real economy downplays their influence and is in tension with their membership to industry groups that are active on real economy policy.” Some key findings: -The Big Five banks racked up $275 billion in loans and bond and equity underwriting to fossil fuel companies between 2020 and 2022, which represents 16.9% of their total financing activity. -Instead of moving to reduce their financing of oil and gas, the banks increased their fossil fuel involvement to 18.4% of total financing in 2022, up from 15.5% in 2020. -Canadian banks’ fossil fuel exposure dwarfs that of their U.S. and European counterparts. The Canadian bank tally of 16.9% fossil fuel exposure compares with 6.1% at the top five U.S. banks and 8.7% at the five largest European banks. -The financing flows of the large Canadian banks between 2020 and 2022 was 3.9 : 1 in favour of fossil fuel financing, roughly opposite to where the ratio needs to be to avoid catastrophic climate change. The top five European banks had a ratio of 2.0 : 1 in favour of fossil fuels, while the largest U.S. banks had a ratio of 2.8 : 1.  -Three Canadian companies alone – Enbridge, TC Energy and Cenovus Energy – received 23% of all fossil fuel financing from the five banks over the three-year period. -Banks are powerful actors in and of themselves and are indirectly working to maintain the current high-carbon economy through memberships in business groups opposing oil and gas emissions caps, carbon taxes and cap-in-trade policies. "This report shows that despite their position of power, the Big Five Canadian banks are failing to support ambitious climate policy in Canada in line with their net zero commitments. These banks hold the keys to unlocking the green transition if they commit to using their climate influence and redirecting financial flows from fossil fuels towards clean energy and solutions. This would not only help tackle climate change but also create good jobs and increase Canada's global competitiveness," says Catherine McKenna, CEO of Climate and Nature Solutions, Chair of UN Secretary-General’s High-level Expert Group on Net-Zero Commitments, former Canadian Minister of Environment and Climate Change.  Read the report here. https://lnkd.in/gbaaMA-N #cdnpoli #banks #climaterisk #sustainablefinance

Bank CEOs should show courage and stand firm as did the CEO of Suncor in the interests of protecting their businesses, shareholders, pension fund and other investors, and the very many retirees dependent on their strong and stable returns. They are appearing before a highly unsophisticated group of whiney self-serving children. Treat them as such. Climate alarmism is a ruse as is all the associated costly reporting. Banks must continue to finance and invest in areas that offer the highest returns. Canadian banks are a beacon of global success in Canada (one of a very few). The Trudeau LNDP government and its woke senate appointees must not be permitted to destroy it as they have done to everything else they have touched over the last 9 years.

The 2024 Banking on Climate Chaos Report reveals that the world's 60 largest banks have invested $6.9 trillion in fossil fuels over the past eight years, including $705.8 billion in 2023 alone 👀 Values-based banks are showing that divestment from fossil fuels – and investment in restorative alternatives like renewable energy and affordable housing – is possible and impactful. Read the latest Banking on Climate Chaos Report to learn more: https://lnkd.in/g2mYF52m #GreenBanking #EthicalBanking #BankingOnClimateChaos #MoveYourMoney #ValuesBasedBanking Beneficial State Bank Member FDIC | Equal Housing Lender

Development banks have received a ratings boost due to Fitch's announcement that debt payment freezes for climate-disaster-affected countries will not affect their credit ratings. Similarly, Fitch will not cap ratings on new 'hybrid' bonds. The introduction of Climate Resilient Debt Clauses (CRDCs) allows low-income countries to defer repayments during severe catastrophes, with Fitch noting minimal impact on banks' overall balance sheets and liquidity. Additionally, Fitch's revised approach to hybrid bonds, influenced by the African Development Bank, removes previous caps, enhancing banks' lending capacities. #ClimateFinance #ClimateResilience #SustainableFinance #ClimateAction #DevelopmentBanks #CRDCs #HybridBonds #ClimateDisaster #FitchRatings #GlobalLending #innovationlab #GlobalBank