Finance is leaving oil and gas

To date, over 100 and counting globally significant financial institutions* have announced their divestment from coal.

Now they’re leaving other fossil fuels including oil, LNG, fossil gas, oil sands and arctic drilling. 

Many have also committed to reducing their fossil fuel exposure to align with the Paris Agreement’s emissions reduction target of 1.5 – 2.0° celsius.

The questions is, who’s next?

Progress

Multilateral Development Banks
Central Banks
Global Banks (Private)
Export Credit Agencies
Development Finance Institutions
Insurers / Reinsurers
Asset Managers / Owners
Pension Funds

It’s a magical alignment that’s igniting and accelerating a transition

Without the economics, would be much harder.

Antonello Cammisecra, CEO Enel’s gas, coal, oil and green power generation worldwide

You talk to anyone at the moment, they say there’s no money

Boris Kamstra, executive director, Alphamin Resources

The science has made clear the targets and time frames

The course that we have charted will see Cbus reduce our portfolio emissions while investing further in renewable energy and climate solutions, as well as avoiding ‘stranded assets’ as the economy transitions.

Kristian Fok, Chief investment officer, Cbus 

Achieving net zero will require a whole economy transition

Every company, every bank, every insurer and investor will have to adjust their business models

Mark Carney, Governor of the Bank of England

The trend in financial markets is that you see fewer and fewer investors still willing to fund fossil fuels

Eskom CEO Phakamani Hadebe

Even for companies that have good projects it’s very difficult for them to raise any money in these markets

Caroline Donally, managing director, Denham Capital

We’ve excluded all coal-related investments and oil

Nick O’Donohoe, chief executive, CDC Group

Global Financial InstitutionTypeCountry and/or HeadquartersFinance RestrictionsCommitment to reduce total fossil fuel exposure and/or align with 1.5-2.0°CRestrictions Introduced
ABN AMROBankNetherlandsOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2018-11
Aegon N.V.Insurer / ReinsurerNetherlandsOil sands Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-01
African Development Bank Group (Banque Africaine de Développement) (AfDB)Multilateral Development BankCôte d’IvoireArctic drilling Aligning with 1.5-2.0°C2019_09
Agence française de développement (AFD)Multinational Development BankFranceOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2019
Asian Development Bank (ADB)Multilateral Development BankPhilippinesArctic drilling
Aligning with 1.5-2.0°C2019-06
ATPAsset Manager / OwnerDenmarkOil sands2020-02
AxaInsurer / ReinsurerFranceOil sands Aligning with 1.5-2.0°C2017-12
AXIS CapitalInsurer / ReinsurerBermudaOil sandsReducing total fossil fuel exposure 2020-01
Banco Santander, S.A.BankSpainOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2018-11
Bank of Montreal (BMO)BankCanadaArctic drilling2020-10
BarclaysBankUKArctic drilling Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-04
BNP ParibasBankFranceOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2017-10
CDC GroupDevelopment Finance InstitutionUKOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-07
CitigroupBankUSArctic drillingReducing total fossil fuel exposure2020-04
Crédit Agricole GroupBankFranceOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2017-12
Crédit Mutuel Asset ManagementAsset ManagerFranceOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-02
Credit Suisse GroupBank
SwitzerlandArctic drillingReducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-07
Deutsche BankBankGermanyOil sands
Arctic drilling
Reducing total fossil fuel exposure2020-07
European Bank for Reconstruction and Development (EBRD)Multilateral Development BankLondonOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2018-12
European Investment Bank (EIB)Multilateral Development BankLuxembourgOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2019-11
FMO (Dutch Development Bank)Development Finance InstitutionNetherlandsOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-11
Folksam GroupInsurer / ReinsurerSwedenOil sandsReducing total fossil fuel exposure 2019-05
Generali GroupInsurer / ReinsurerItalyOil sandsReducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-03
Goldman SachsBank / Asset ManagerUSArctic drilling2019
Government Pension Fund Global (GPFG)Asset Manager / OwnerNorwayGeneral exclusion of all oil and gas exploration firms globally. Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-09
Hannover Re / Talanx GroupInsurer / ReinsurerGermanyOil sandsReducing total fossil fuel exposure 2019-11
HSBC HoldingsBankUKOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-02
ING GroupBankNetherlandsOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2019_06
Inter-American Development Bank (IDB)BankUSOil sands
Arctic drilling
2020-09
JPMorgan Chase & Co.BankUSArctic drilling2020-02
KfWDevelopment Finance InstitutionGermanyOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-11
KLPPension FundNorwayOil sandsReducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2019-10
Landesbank Baden-Württemberg (LBBW)BankGermanyOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2019-03
Lloyds Banking GroupBankUKOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-01
MetLifeInsurer / ReinsurerUSOil sands 2020-07
Morgan StanleyBankUSArctic drilling2020-05
Munich ReInsurer / ReinsurerGermanyOil sandsReducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2019-12
National Australia Bank (NAB)BankAustraliaOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2019-12
NatixisInsurer / ReinsurerFranceOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2018-11
NatWest Group (formerly The Royal Bank of Scotland Group)BankUKOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-07
NN Group (Nationale-Nederlanden)Insurer / ReinsurerNetherlandsOil sandsReducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2019-05
NordeaBankFinlandOil sandsReducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2019-05
RabobankBankNetherlandsOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-04
RobecoAsset ManagerNetherlandsOil sands
Arctic drilling
Aligning with 1.5-2.0°C2019-09
Royal Bank of Canada (RBC)BankCanadaArctic drilling2020-10
SCORInsurer / ReinsurerFranceOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2019-07
Société GénéraleBankFranceOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2018-05
Standard CharteredBankUKOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020
StorebrandAsset Manager / OwnerNorwayOil sands Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-08
Suncorp GroupInsurer / ReinsurerAustraliaWill stop financing overall oil and gas sectorReducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-08
Svenska Handelsbanken ABBankSwedenOil sands
Arctic drilling
Aligning with 1.5-2.0°C2020-03
TD Bank GroupBankCanadaArctic drillingReducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-11
The Hartford Financial Services GroupInsurer / ReinsurerUSOil sands2019-12
The World BankMultilateral Development BankWashingtonOil sands
Arctic drilling
Reducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2017-12
UBSBank / Asset ManagerSwitzerlandOil sands
Arctic drilling
Reducing total fossil fuel exposure 2020-03
UniCreditBankItalyOil sands
Arctic drilling
2019-09
Wells FargoBankUSArctic drillingReducing total fossil fuel exposure
Aligning with 1.5-2.0°C
2020-03

Note

* Significant financial institutions are restricted from this tally if they have AUM<US$10billion, and/or the institution’s announcement has not been followed up with public disclosure, and/or the restrictions are selectively limited. Asset managers/owners are included only if AuM >US$50bn.

Insurance companies divest fossil fuel investments across their asset portfolio and restrict the provision of insurance, while banks restrict lending and underwriting to fossil fuel companies or projects.

IEEFA will continue to monitor announcements and will add or delete institutions pending implementation of said announcements.

Why are financial institutions restricting oil and gas funding?

Significant investors* are divesting from oil sands exploration, production, transport and processing, and also arctic oil and gas projects over concerns about carbon emissions.

These investors are increasingly aligning their portfolios with the emission reduction goals of the Paris Agreement.

Oil sands (sometimes known as tar sands) consist of heavy crude oil mixed with sand, clay and bitumen, and is used to produce gasoline, diesel, jet fuel and other petroleum-based products.

To extract oil, oil/gas companies burn the fossil fuel ‘natural’ gas to generate enough heat and steam to melt the oil out of the sand. Some five barrels of water are needed to produce a single barrel of oil.

Oil sands extraction is among the world’s most carbon intensive large-scale crude oil operations. Carbon emissions are reported to be 31% higher than from conventional oil. The release of methane (from gas) during the oil extraction process generates upstream greenhouse gas emissions, which are worse for the climate than coal in the short term.

Arctic drilling to extract ‘natural’ gas and oil is more costly and technologically complicated than drilling for oil on land. Large amounts of water are consumed in the process. And the ability to respond to oil spills is severely limited.

Banks, insurers and asset managers are reducing or eliminating their support for fossil fuel projects.