This report aims to prompt commitments from banks to stop supporting oil & gas expansion in line with credible net-zero pathways. It includes an analysis of the largest 25 European banks’ oil & gas policies and gives an overview of financing provided in recent years to a selection of 50 companies with large upstream oil & gas expansion plans.
The report highlights three key findings:
- Oil & gas expansion is incompatible with net-zero by 2050. Banks committing to align with net-zero should see investment guidance from the IEA as an absolute minimum level of ambition.
- Financing oil & gas expansion is a risky bet for banks. Every field that gets developed increases transition risks and physical risks for the sector and other parts of the economy.
- The European banking sector supports the largest upstream oil & gas expanders.
ShareAction recommends that banks benchmark their position against peers and align with leading practice as soon as possible. Investors are encouraged to actively engage with banks on oil & gas expansion during the 2022 AGM season and beyond, by making clear, ambitious, and timebound requests where possible.