A significant step for French banks towards a responsible transition
One week before the 7th Climate Finance Day, the six largest French banks* have made a joint commitment.
Starting in January 2022, the group of banks will no longer finance dedicated projects and companies when their share of non-conventional hydrocarbons in exploration and production activities (shale oil, shale gas, and oil sands) exceeds 30% of their activities.
For Laurent Mignon, Chairman of the FBF's Climate Commission: “This represents a significant step forward, a world first, that demonstrates once again the determination of French banks to be leaders in a global, sustainable and responsible transition. We hope that other players and markets worldwide will rapidly follow this example. By publishing their figures – thereby providing proof of transparency – and by making this new commitment, French banks are speeding up the pace of the transition by supporting the entire economy.”
It should be remembered that the financing of companies involved in coal accounted for only €2.1 billion, or 0.16% of French banks’ corporate portfolios, at the end of 2020. At the same time, the banks are increasing their financing of renewable energies at a rapid pace, an area that amounted to more than €44.3 billion in 2020, an increase of 68% in 4 years.
*BNP Paribas, Groupe BPCE, Crédit Agricole SA, Crédit Mutuel, Société Générale, La Banque Postale