The voices of the GABV CEOs in my prior post are unfortunately not a majority of bankers. But the risks which they discuss are real and will impact banking results and stability. The Financial Times highlighted the concerns of regulators regarding stranded assets in the energy sector that are focused on carbon. As noted in that article “the Financial Times’ Lex team concluded that meeting the terms of the UN’s Paris Agreement — to limit global warming to 2C — would leave 29 per cent of oil reserves stranded and wipe about $360bn from the value of the top 13 international oil companies by reserves.”
And pressure on large banks from investors will continue to grow. Share Action has filed a resolution for Barclays to try to force a more proactive approach to carbon based energy lending and investments. As noted by Share Action, this was necessary “(b)ecause banks are the laggards on climate action.”
When will all banks realise the need to take action to reduce their support for a carbon based economy?
