American banking investors don’t supported climate resolutions shutterstock

American banking investors don’t supported climate resolutions

Ekaterina Belousova

Financial institutions play a key role in decarbonising the global economy and addressing systemic risks associated with climate change

In the United States, investors in three major banks, namely Wells Fargo, Bank of America and Citi, have refused to support resolutions calling for tougher fossil fuel financing policies.

However, according to the US environmental group Sierra Club, which submitted proposals, the resolutions found unprecedented support, despite the fact that they were not adopted, according to Financial Thimes.

The proposals called on banks to align their fossil fuel financing policies with net zero emissions by 2050 and to prevent new fossil fuel supplies. But these decisions were supported by only about 11% of the shareholders of Wells Fargo and Bank of America and less than 13% of the shareholders of Citi.

Similar proposals have been made to other US banks, including Goldman Sachs and JPMorgan Chase.

All six creditors have joined the Net-Zero Banking Alliance (NZBA), which requires them to decarbonize their cases by the middle of the century.

The article noted that the impact of lending and underwriting activities of large banks on the climate is increasingly being tested under pressure from shareholders, activists and celebrities.

At the annual general meeting, bank executives were asked several questions from shareholders about climate change issues.

Asked if BofA is going to end its relationship with fossil fuel companies that refuse to pursue a policy that limits climate change to 1.5 degrees Celsius, CEO Brian Moynigan said that although the bank will work with customers to help them to move towards this is, after all, their transition.

Jane Fraser, CEO of Citigroup, said that while the bank recognizes that emissions from the fossil fuel sector need to be reduced, it is impossible for the global economy to close the fossil fuel economy overnight.

"The transition needs to be accelerated, but it also needs to be managed to minimize the shock to our economy and communities," Fraser said.

Adele Schreiman of the Sierra Club's Fossil Funding Campaign said big asset managers did not use their power to hold banks accountable for their climate promises, but a clear signal was sent to Wall Street.

"Large banks have a responsibility to address their huge contribution to climate crises and protect their shareholders from climate risks by aligning their policies with their own zero commitments and by stopping support for fossil fuel expansion. They are under pressure from shareholders and the public only it's getting worse," Schreiman said.

Also, the New York State Pension Fund of $ 280 billion in early April supported the proposals submitted by all three banks. The fund called on shareholders to support these decisions, as financial institutions play a key role in decarbonising the global economy and addressing systemic risks associated with climate change.

We will remind, Europe is preparing investment in decarbonization in response to climate change and the Russian war.

As EcoPoliticа reported earlier, The EU Council agreed on its position European green bonds.

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