The Royal Bank of Scotland announced a new suite of energy financing policies at the end of May, which are designed to substantially reduce the bank’s exposure to fossil fuel investments and includes halting project-specific financing for new coal-fired power stations, coal mines, and oil sands and Arctic oil projects.
The bank framed the announcement of its new policies as part of its larger desire to reduce exposure to fossil fuels and increase its growth in renewables, specifically as it refocuses its attention on the UK, Ireland, and Western Europe. “There is growing interest in the role banks can play in tackling climate change,” the bank explained, pointing to a recent decision it made to commit £10 billion in funding to the sustainable energy sector between 2018 and 2020. This came at the same time as the bank announced that 80% of its energy project financing in 2017 was directed to renewables.
As such, the new policies continue the bank’s desire to change its approach and shifts its directions for the mining, power, and oil and gas sectors. Specifically, the Royal Bank of Scotland (RBS) will not provide project-specific financing to the following:
New coal fired power stations
New thermal coal mines
Oil sands projects
Arctic oil projects
Unsustainable vegetation or peatland clearance projects
Ask what your bank or credit union is doing in this regard. Bring them in this article and ask that it be passed on to upper management, the CEO or the board.