Credit Suisse (CSGN.S) investors managing $2.5 trillion have called for the bank to take a tougher stance on coal financing, amid concern its current policies are too lax, a letter seen by Reuters showed.
By Luigi Serenelli2021-04-30T14:44:00+01:00
Institutional investors with assets worth $2.47trn (€2trn) are pushing Credit Suisse to step up efforts to cut financing coal while the lender is under pressure for its role in the Greensill and Archegos crises.
In a statement ahead of the bank’s annual general meeting, held today, ShareAction and seven institutional investors demanded Credit Suisse to set a firm date to phase out from coal, citing the Intergovernmental Panel on Climate Change (IPCC), which recommends 2030 for the OECD and 2040 at the latest for the rest of the world.
The group of investors, coordinated by ShareAction, includes Amundi, BMO Global Asset Management, Actiam and Folksam, according to reports. Ethos Foundation also joined the group.
[Reuters]
Coal is falling out of favor across the developed world because of concerns over pollution and climate change, but it remains a growing energy choice in many parts of Southeast Asia driven by Chinese investment.
While many markets, including the United States, Europe, and East Asia, shift away from coal, Chinese banks, energy and construction companies remain committed to financing and building dozens of plants in Indonesia, Vietnam, Cambodia, and Laos.
That’s despite growing concerns about environmental degradation, electricity oversupply, and air pollution. Coal is widely considered the dirtiest fossil fuel for electricity generation, with the highest greenhouse gas emissions, and widespread air, water, and soil quality issues due to mining, burning, and coal waste.