Spotlight on ESG: Banking on change when it comes to Fossil Fuel Financing

The term ‘fossil fuel financing’ refers to the provision of financial support (including loans, investments, and other forms of capital) to companies involved in the exploration, extraction and production of coal, oil and gas. This financing enables fossil fuel companies to fund their operations, including the development of new projects, maintenance of existing infrastructure, and expansion of their businesses. Banks have played a significant role in fossil fuel financing by providing capital which is crucial for the functioning of the industry, but it raises concerns over the environmental, social and economic impact. That said, the banks can influence positive change by encouraging environmentally responsible practices and supporting the transition to cleaner energy sources over time.

On our latest educational webinar in our "Spotlight on ESG" series, Johnathan Owen, Portfolio Management discussed fossil fuel financing and how we engage with banks on this subject. The session touched upon some of the following topics: 

• Overview of fossil fuel financing and its significance for the global economy
• The role of banks in financing the transition to a greener economy
• Which banks are the worst offenders and how does it vary by geography
• Investor expectations and demands for fossil fuel phase-out policies
• Case studies and engagement examples