A damning report on banks’ financial support for the coal industry has been published by a consortium of NGOs. The report details banking practices that have powered coal’s meteoric growth – and clear contradictions between lending practices and the banks’ stated environmental aims. The banks are ranked according to their total coal-related loans and underwriting, with Citi, Morgan Stanley, Bank of America, JP Morgan Chase, and Deutsch Bank shamefully topping the list. Other banks are singled out for vocally denouncing coal while bidding on massive coal projects. This disparities between banks’ environmental marketing and their actual banking practices. The study is the first of its kind, and it discusses additional metrics that could reviewed in future reports, particularly funding for coal mining infrastructure.
Given the powerful influence such reports can have on institutional and private investing, the twenty banks ranked in this report would do well to adjust their practices. The report also serves as a warning to other companies that might approach their CSR reporting with vague promises. In these days of growing transparency, platitudes are no longer a substitute for direct action. CSR Consulting helps its clients mitigate the risk of such marketing catastrophes and will bring a depth of experience to your CSR reporting to ensure it withstands this sort of heightened scrutiny.
To read the full report, click here.
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