Big banks around the world have been pledging to reduce their net carbon output to zero for years now. A new report alleges that they've been going back on their word by funding massive Big Oil projects.
What's happening?
While the world works to come together and protect our planet, giant companies like BP and Shell continue to expand the production of gas and oil. To do this, they need a tremendous degree of funding. Perhaps the only place that funding can come from is major banks. But while well over 100 big banks around the planet have made net-zero pledges to avoid funding a net positive contribution of carbon into the atmosphere, it seems Big Oil is still finding that funding.
A report from the Bureau of Investigative Journalism alleges that over 180 companies have acquired funding for dirty energy expansion projects from supposedly net-zero banks. The report claims that the money raised by these banks nears a staggering $1 trillion.
Specifically mentioned is the British banking giant NatWest. The report states that the bank helped BP raise half a billion dollars in 2023. NatWest has pledged to cut its climate impact in half by 2030 and go net zero by 2050.
Even if these banks are making internal environmentally conscious changes, funding massive projects to increase dirty energy production contradicts them entirely. It's, without a doubt, an egregious example of greenwashing. In other words, their comparatively small efforts, gestures, and publicly stated intentions appear more to sanitize their image rather than make a real difference in winding down the biggest contributions to the overheating of the planet.
According to John Lang, founder of Net Zero Tracker, "There's no way we can meet the temperature goals of the Paris Agreement if we continue financing the exploration of oil and gas."
"It's indefensible," Lang said.
Why is Big Bank greenwashing important?
The world's hope to reduce dependence on oil and gas depends on these giant banks to make good on their word. If they continue to do the opposite or even continue to push back their goals, then the world may see its carbon output increase significantly rather than decrease.
And as long as they've got the funding they need, Big Oil companies will continue to oppose efforts to protect the environment and public health.
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What's being done about big bank greenwashing?
It may seem an insurmountable task to stop big banks and Big Oil from doing whatever they please, but there are ways we can make an impact. That impact can start by reducing our own dependence on oil.
The International Energy Agency's 10-Point Plan to Cut Oil Use highlights some of the ways the world can do that. Among the ideas the document shares are working from home when possible and using public transportation or car sharing if not.
Another way to take a stand against the big banks and their greenwashing is to track the progress of their net-zero pledges and to avoid using them whenever possible. You can do that by keeping an eye on the Net Zero Banking Alliance through BankTrack or reviewing green bank and credit card options through Bank for Good.
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