Bank chairs who watered down their lenders’ climate commitments this year could face embarrassing shareholder revolts as campaigners try to hold bosses to account for environmental backtracking.
ShareAction, the campaign group for responsible investment, will issue detailed reports to pension funds and asset managers in the coming weeks detailing whether 34 of the world’s biggest lenders are sticking to their climate targets.
Its reports closely analyze any changes in lenders’ environmental policies, which are usually published alongside their annual reports.
The UK’s biggest banks are NatWest, Lloyds and Microscope in first place. HSBC All are required to release their annual reports by the end of February. Barclays will publish its annual report on Tuesday.
ShareAction calls on institutional stakeholders to vote against the re-election of any chair they believe is overseeing climate roll-back. Those votes will take place at annual shareholder meetings beginning this spring.
Kelly Shields, ShareAction’s senior campaign manager on its banking program, said it was unlikely to fire any owners but was a symbolic move that sent a personal message to directors.
Shields hopes to “slow this trend down [climate] Backtracking, and send a signal to the wider sector that backtracking comes with consequences”.
“These directors are getting approval with 98-99% votes,” she said. “Even if a small amount is struck down, it can send a very strong signal and make it a little more personal. That director will hopefully feel responsible and emboldened to act, or at least engage with investors on the issue.”
ShareAction’s campaign – which will gather some new and existing supporters in the investment world – will fall under banks and other financial institutions. Fresh pressure on their green commitments Since Donald Trump returned to the White House last year.
The Republican president’s anti-green agenda has emboldened right-wing climate deniers and fueled a revival of oil and gas production, putting pressure on banks to increase financing for fossil fuel companies.
This has notably led to a series of departures from the UN-backed Net Zero Banking Alliance (NZBA), which requires members to ensure that their policies ensure they hit net zero emissions targets by 2050 or earlier.
It eventually led to the withdrawal of key NZBA members, including JP Morgan, Citigroup and Goldman Sachs, as well as UK lenders Barclays and HSBC. The group’s demise in September.
HSBC announced last year Delaying important parts of its climate goals By 20 years and watering down environmental targets as part of a new long-term bonus plan for its chief executive, Georges Elhedary.
“We really want the banks to reevaluate this and do what’s necessary to make sure we’ve got long-term financial stability and put people and the planet first,” Shields said.
