Stop the Money Pipeline
Part of a press release written by Third Act, a climate justice group for people 60 and older:
US-headquartered banks are by far the worst offenders when it comes to financing fossil fuel companies for their polluting projects.
The top four fossil fuel financing banks are JP Morgan Chase, Citi, Bank of America and Wells Fargo, pumping over one quarter of the $4.6 trillion total financing for fossil fuels by the top 60 global banks between 2016 and 2021.
While the US banks have verbally committed to help reach the global target of Net Zero emissions by 2050, none have published a credible transition plan or ruled out fossil fuel financing for expanding projects.
By contrast some European banks are making these commitments, leaving US banks lagging in the drive to cut global emissions and address climate change. In December HSBC, Europe’s largest bank, announced it would no longer finance new oil and gas projects. Danske Bank this year said it would stop financing oil and gas projects and corporate financing.
US-headquartered banks have financed controversial projects in the US. This includes funding harmful methane gas companies and projects along the Texas and Louisiana Gulf Coast which disproportionately impacted communities of color.
The banks are also funding climate destruction globally. Citi is the second largest methane gas financier in the world, it is the biggest funder of fossil fuel expansion in Africa, the largest backer of state-run projects in the Amazon and was found to have been involved in a deal in Peru which allegedly involved oil spills and links to terrorist groups.
US banks have also been found to have dismally low levels of financing of renewable energy. Just 2% of financial backing by JP Morgan Chase and Citi for energy companies went to renewable energy activities between 2016 and 2022, according to data released in January.
Thousands and thousands of customers have pledged to move their money out of these banks if the banks won’t move their investments out of fossil fuels, and these pledges were delivered to the banks. People do not want their money, savings, and credit cards to be used by these banks to finance climate destruction.
In light of the recent upheavals in the banking sector and the greater concentration of deposits in the large Wall Street banks, more than ever we need to demand that these banks use their power and funds responsibly. The banks must manage both financial risks and climate risks; indeed climate risks are financial risks. We need safe and secure banking on a safe planet.
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