As 2021 draws to a close, we look back on a year in which the volume of campaigning pressure on banks was truly dialled up to 11. Finance was a central focus at both the UN’s Kunming conference on Biodiversity in October and the Glasgow climate conference in November, and both events – but particularly Glasgow – saw concerted pressure from campaigners and the public on the need for financial institutions to stop bankrolling these escalating global crises. The reaction from the banks, however, has fallen far short of expectations. On climate, banks have almost universally rallied around the idea of 2050 net-zero targets for their financed emissions. While this represents at least some recognition of the 1.5 degree climate target of the Paris agreement, we cannot applaud any bank that still allows itself to keep financing new oil and gas extraction projects, new pipelines, and companies with fossil expansion plans that will bring this target fully out of reach. As 2021 ticks over to 2022, the number of years we have left to halve global emissions drops from nine to eight. The bank-funded expansion of the fossil fuel industry must stop now. We also, of course, look back at a second year of a global pandemic that right now does not look like it is going to go away anytime soon. This health crisis is deeply intertwined with the other global crises we face, and in response to this, we at BankTrack have been reflecting on our work and reformulating our mission. Starting in the new year, BankTrack…

New research conducted by BankTrack and Justice For Myanmar finds that major Japanese banks Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Financial Group (MUFG) and Mizuho Financial Group provide considerable loans and financial services to companies with ties to the Myanmar military junta, as well as loans and investment to junta-linked projects. According to the Central Bank of Myanmar’s 2018-19 annual report, the most recent available, Mizuho is the biggest foreign bank in Myanmar by assets, accounting for over 16% of the foreign banking sector. Sumitomo Mitsui Banking Corporation is second largest, and MUFG is fifth largest. The three Japanese banks were among nine international banks that in 2015 pledged to provide US$75 million each to obtain a license to serve foreign investors in Myanmar. The provision of finance, investment and services ultimately results in Japanese financial institutions playing an important role in propping up the military junta and contributing to the continuation of the deadly attempted coup and the Myanmar military’s atrocity crimes. These findings follow a report published in April 2021 by BankTrack and Justice For Myanmar, which revealed that 19 banks invested over US$65 billion in companies with ties to the Myanmar military cartel. Among many other banks, we noted that Japan’s big banks play an important role as investors, with Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Financial Group and Mizuho Financial Group together investing more than US$16.9 billion…

A major highlight of the COP26 summit was the UN-sponsored Glasgow Financial Alliance for Net Zero Emissions reaching 450 globally significant firms that collectively manage US$ 130 trillion of financial assets, including Deutsche Bank. This pledge comes with a Commitment Statement to align activities with limiting global warming to 1.5°C, an interim 2030 target, prioritising areas where banks can have the most significant impact and consistency with Science Based Targets initiative (SBTi). The International Energy Agency (IEA) says that under a 1.5°C alignment the world can’t afford any new coal, oil or gas developments globally, with immediate effect. That much is straightforward and clear. However, it seems that someone forgot to inform Deutsche Bank that a pledge signed off by the board is meant to be credibly implemented in good faith, and consistent with the bank’s fiduciary duties to manage key financial risks. It was recently reported that Deutsche Bank organised a non-deal roadshow for the bonds market in preparation for new debt raising by Whitehaven Coal. The report also mentioned Deutsche Bank’s intention to act as a bookrunner for any bond issue that emerges. Deutsche Bank has long trumpeted its climate credentials, emphasising its leadership in signing the Paris Pledge for Action back in December 2015. Yet Whitehaven Coal plans to build three new coal mines and extensions, which have no place in a 1.5°C aligned world. This is a clear contradiction of Deutsche…