Bad Banking

On the 5th December 2018, Greenpeace made their mark on Barclays branch at Piccadilly Circus, as they branded them ‘THE DIRTY BANK’. 6,000 of Barclays customers threatened to switch banks if they continued to invest in pipelines for oil from tar sands, which is the dirtiest fuel on the planet - worse than any other fossil fuel and especially worse than renewable energy sources. We all try our best to help the environment, but Bea O’Kelly examines parts of the banking industry that do not do the same. So which green banks can you swap to? Co-operative Bank was the first UK high street bank to introduce a customer led ethical policy. Their website clearly states: “In 2017, we marked the 25th anniversary of our Ethical Policy. We have worked together to tackle the things that matter to you. From climate change to human rights.”

Greenpeace claimed that if the tar sands were fully exploited, it would take up 15% of the world’s carbon budget if governments are to meet the goal of limiting global warming to 1.5 degrees. It was an absolutely unacceptable investment on behalf of Barclays, but the question is, has anything changed?

‘‘Destruction that they continue to fund’’

I’m afraid to say, if change has occurred, it’s for the worse. Customers, shareholders and governments have demanded change, but the Rainforest Action Network calculated that 33 of the biggest banks have funded £1.5 trillion into fossil fuels in the last three years. Barclays leads Europe, spending roughly 65 billion in fossil fuel expansion, despite Barclays spokesperson claiming in January 2019:

“We recognise that climate change is one of the greatest challenges facing the world today. Our approach balances the need to accelerate the transition away from the most carbon intensive fossil fuel sources, with ongoing financial support for clients operating responsibly.”

However, Barclays has secured deals for three of the four top fracking companies active in America’s most prolific oil basin since that statement. HSBC is no better, as it increased its total fossil fuel investment in the years after the Paris Agreement to more than £18 billion.

“It is the one greatest challenge we are facing, have ever faced, and the biggest we are ever likely to face”

Triodos Bank is one of Europe’s leading ethical banks and aims to enable money to work for positive social, environmental and cultural change. It has established partnerships with The Soil Association and Friends of the Earth.

Ecology Building Society is dedicated to improving the environment as it promotes sustainable housing and communities. Money invested in them is used to fund mortgage lending on energy efficient housing, ecological renovation and low impact lifestyles.

Swapping banks can be a hassle. However, it is the only action that will impact these big banks who continue to turn a blind eye to the destruction of our planet - destruction that they continue to fund. It’s time for change.

Bea O’Kelly

Overall, neither bank is environmentally cautious, something simply unacceptable in today’s climate. Barclays spokesperson was wrong, it isn’t ‘one of the greatest challenges’ facing today’s world, it is the one greatest challenge we are facing, have ever faced, and the biggest we are ever likely to face. Barclays and HSBC are not treating this with the urgency it deserves, but some banks are.