Big Banks (Still) Pumping Billions Into Fossil Fuels

Time to change where you bank.

Banking on Climate Chaos Report 2024 https://www.bankingonclimatechaos.org/wp-content/uploads/2024/07/BOCC_2024_vF3.pdf

Your bank is financing pollution that is causing unnatural extreme weather and ruining our kids’ future.

Need-to-Know: Most big banks use our deposits to fund carbon polluters

The world’s biggest banks collectively provided more than $705 billion to fossil fuel companies and projects in 2023.

Almost half of them increased their financing to carbon polluters compared to 2022. Yes, last year many banks increased their investments in pollution that is scorching our planet.

In Canada, virtually all of the largest banks, insurance providers, investment firms, and pension boards put most of their energy-sector financing and investment into fossil fuels, according to a new report.

Common sense says it should be the other way around so our kids and grandkids will have a viable future.

The International Energy Agency (IEA) says renewable energy should receive at least 71% of banks’ and financial institutions’ total investments to be compliant with the Paris climate target. Only three institutions — Canada Pension Plan, Quebec Pension Plan (CDPQ), and Brookfield Corporation— have Paris-aligned, power-sector financing and investing.

Need-to-Know: EVERY country in the world agreed to the 2015 Paris target of well below 2 degrees C.

Here’s a shocking analysis of banks’ role in carbon pollution.

If your bank lends to carbon-intensive industries, just $1,000 in your account could produce as much carbon pollution as a flight from New York City to Seattle.

What to do? Change where you bank.

1. Find your bank’s green rating here.

   https://www.fossilbanks.org

   Banks in different countries are evaluated based on their investment ratio of clean energy vs. fossil fuel financing. For example, if the bank’s investment in clean energy is 80% or higher than those in fossil energy, it is rated BEST.

2. Find a better, greener bank.

   My ex-bank, TD Bank, is rated WORST as #1 in the world for tar sands financing. More about TD Bank here.

3. Switch to a new bank.

   My new bank, Alterna, is rated BEST.

   It took some time and paperwork to make the switch. We haven’t shifted everything yet (credit cards). The overall experience has been great, and we get the same, or even better service and returns.

Need-to-Know: Switching banks can be a powerful, relatively easy, and affordable climate action

The site can also suggest greener alternatives you might want to switch to. And if your bank isn’t there, you can ask Bank Green to check it out.

Need-to-Know: It makes perfect sense to invest in clean technologies to have safer, healthier communities

Until next time, be well.

Stephen

P.S.

The Global Alliance for Banking on Values puts finance at the service of people and the planet. Dozens of banks around the world have joined, sadly not many are from North America.