HSBC, Barclays still funding fossil fuel projects despite green pledges: ShareAction report

HSBC, Barclays still funding fossil fuel projects despite green pledges: ShareAction report

RIYADH: HSBC, Barclays, and Deutsche Bank are still funding new oil and gas expansion projects, despite being part of a green banking group, according to UK campaigning organization ShareAction. According to a report from the group, big banks in Europe have invested over $400 billion in companies expanding oil and gas production since 2016. The report added that investors should urge banks to demand green plans from fossil fuel firms before giving funds. Spokespeople for all three banks insisted their organizations are committed to working toward a low-carbon economy. The report states that HSBC has put an estimated $8.7 billion into new oil and gas in 2021. The campaign group noted that Barclays has poured some $4.5 billion while Deutsche Bank has loaned $5.7 billion. Some of the fossil fuel companies who received the funds are Exxon Mobil, Shell, and BP. ShareAction warned that funding new oil and gas is a lose-lose for banks and investors. Xavier Lerin, a senior research manager at ShareAction, said: “If oil and gas demand decreases in line with 1.5 C scenarios, prices will fall and assets will become stranded. “On the other hand, if demand does not fall enough to limit global warming to