Six UK high-street banks - JP Morgan Chase (NYSE:JPM), Santander (BME:SAN), Barclays, HSBC, NatWest Group, Lloyds Banking Group (LON:LLOY) - have been identified by Which? and Reclaim Finance as key financiers of the fossil fuel industry due to their inadequate environmental policies. The findings, published on Thursday, also indicate that despite setting emission reduction targets, some banks continue to fund fossil fuels.
JP Morgan Chase scored a low 16% for environmental impact and has contributed $434 billion (£357 billion) to fossil fuel financing between 2016 and 2022. However, the bank has set a target of $1 trillion (£820 billion) for green initiatives by 2030. Santander has financed $51 billion (£42 billion) in fossil fuels.
Barclays has set unique power and energy targets for 2025 and provided £87 billion of green finance since 2018. HSBC received a two-star rating for its coal, oil, and gas policies. Meanwhile, Lloyds Banking (NYSE:LYG) Group and NatWest Group scored 40% and 43%, respectively, on their environmental impact.
Despite making ambitious strides to reduce its exposure to fossil fuels, NatWest continues to finance them. Lloyds, although less involved compared to its peers, has not excluded all financial services for oil and gas firms.
The study also revealed that TSB is indirectly linked to fossil fuel financing through its parent company Sabadell. On the other hand, Nationwide Building Society, The Co-operative Bank, and Triodos Bank UK have earned the Which? Eco Provider badge for their commitment to a net-zero future and setting emission reduction targets for 2030.
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