Some of the UK’s biggest high-street banks have been put in a “red” warning category based on their fossil fuel investments and policies on tackling climate change.
Consumer group Which? examined the environmental policies of 13 of the UK’s leading current account providers, and only three qualified for the Which? Eco Provider badge.
Banks can finance the fossil fuel industry through project finance (lending to fossil fuel companies for specific projects), general corporate lending, or through capital markets activity such as underwriting.
In the analysis, the researchers also considered transparency levels, whether banks had credible targets to reduce their exposure to environmentally damaging sectors, and whether they publish independently verified data.
JP Morgan Chase, Santander, Barclays, HSBC, NatWest (including RBS) and Lloyds (including Halifax and Bank of Scotland) were classified in the “red” category.
Those in the “green” category — with no exposure to fossil fuels in their banking activities — were Nationwide, The Co-operative Bank and Triodos Bank UK.
“Consumers seeking to make more sustainable choices might want to consider switching banks if they are uncomfortable with their money being invested in the fossil fuel industry and other projects which could be damaging to the environment,” said Sam Richardson, deputy editor of Which? Money.
“By choosing one of Which?’s three Eco Providers, customers can feel confident that their bank has impressive green credentials and steers clear of investing money in coal, oil or gas.”
