Crédit Agricole rated as one of the large world banks with the least funding for fossil fuels
According to a 2018 report by Rainforest Action Network, an international environmental organisation comprised of 56 associations, some $115 billion (€93 billion) in bank financing was allocated to the most polluting fossil fuel exploitation projects in 2017. Total bank financing was up 11% year on year.
Rainforest Action Network had this to say to the international community: “It is environmentally, reputationally, and often financially risky for banks to back these fossil fuel projects and companies. More and more, the public is tying the impacts of fossil fuels to the financial institutions backing the sector. The authoring organizations of this report demand that banks end financing for extreme fossil fuels, and all expansion of the fossil fuel industry, while ensuring that their financing does not contribute to human rights abuses.” The report, entitled “Banking on Climate Change: Fossil Fuel Finance Report Card 2018”, examines backing in the forms of loans and equities and bonds issued by the world’s 36 leading banks to the benefit of the 30 largest companies active in tar sands, Arctic and ultra-deepwater oil, coal mining and power, and liquefied natural gas export. The banks are not collectively responsible for greenhouse gas emissions. The study shows that US and Canadian banks are increasing their financing for fossil fuels, which are dangerous for the climate and people’s rights. In contrast, European, Chinese, Australian and Japanese banks have reduced their fossil-fuel financing in recent years. Here are some of the findings in detail:
In France, Societe Generale, BNP Paribas and Crédit Agricole contributed $5.4 billion (€4.4 billion) in financing to these sectors in 2017, with 60.1% of the total funded by Societe Generale, 20% by BNP Paribas and 19.9% by Crédit Agricole. Crédit Agricole is one of the major players in the energy transition
Speaking on Climate Finance Day on 28 November 2018, Philippe Brassac stressed our strong commitment to the fight against global warming and set out three commitments: 1. Support all our clients in the transition to a “low-carbon” economy in line with the 2°C trajectory of the Paris Agreement. 2. Integrate ESG criteria across the board in our financing and investments. 3. Invest and foster investment/financing in large-scale renewable energy projects. Crédit Agricole confirmed its world leadership in this field at the end of the year with an initial issue of €1 billion, upheld and shared by all the entities of the Crédit Agricole Group in France and internationally. The assets are mainly in the sectors of renewable energy, green real estate, energy efficiency, clean transport, waste and water management, sustainable agriculture, and forest management. The Group is the world’s leading arranger of green bonds and the leading institutional financier of photovoltaic power in France. In addition, the Group shrank the carbon footprint of its financing portfolio by 25% between 2012 and 2017, from 160 million tonnes to 120 million tonnes. Find out more about the study: