UK Bank Majors Scale Up Sustainable Financing Investment Commitment Amid Criticism
(21 April 2020 – Europe) Global banking giants, Barclays and HSBC have been accused of contradicting the Paris Agreement 2015 which detailed that the banks would align their financing portfolio towards the sustainable goals of the Paris Agreement. However, both banks have recently invested a combined GBP£158 billion into the fossil fuel industry and are currently the two top fossil fuel financiers in Europe.
Non-governmental organisations are now lobbying banks to become fully compliance to the net-zero carbon emission climate guidelines set out by the United Nations (UN).
Notably, both banks have made huge progress towards sustainability commitments. Barclays have pledged to become a net-zero organisation by 2050 and HSBC have pledged to provide around GBP 100 billion in sustainably financing by 2025. Nevertheless, both banks are still largely allocating funding to the fossil fuel sector.
“Time-bound, numerical targets will be developed for other sectors Barclays invests in over time, as will more ambitious targets for investing in green innovation. Barclays has set a short-term commitment to provide £100bn of green finance by 2030 - £175m of which will be allocated to “environmental innovation” by 2025” Barclays said in a statement.
“The new position includes reporting on targets from 2021, and a specific 30 percent reduction of CO2 intensity in our power portfolio and a 15 percent reduction in CO2 intensity in our energy portfolio by the end of 2025. Achieving these milestones requires immediate new restrictions on fossil fuels which are also part of our announcement and take effect immediately” a Barclays spokesperson stated.
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