Re:Common: “UniCredit breached its own coal policy and supports oil & gas expansion"
On the occasion of UniCredit’s 2021 Shareholders' Meeting, Re:Common reports important regressive developments in climate commitments taken by the Italian bank
On the occasion of UniCredit’s 2021 Shareholders' Meeting, Re:Common reports important regressive developments in climate commitments taken by the Italian bank. Despite its positioning on coal, a first-class commitment acknowledged at global level, UniCredit failed to meet the commitments on coal exclusion provided by its policy. Two weeks ago, together with other international banks, the Italian group was involved in a loan arrangement to the Czech energy group EPH, for a total amount of €1 billion. EPH is widely known for its bad habit of buying obsolete and polluting coal assets in order to prolong their operation. The Czech group is the owner of the Fiume Santo coal power plant (Sardinia), one of the main sources of pollution in the northern part of the island. Since EPH is expanding its business with the acquisition of the Schkopau plant, owned by Uniper, this loan may configure as a breach of UniCredit's policy, which provides for the end of financial relations with all those companies that are expanding the their coal business. In addition to this, in 2020 alone, a remarkably difficult year because of the Covid-19 pandemic, UniCredit decided to provide loans and underwriting services to oil&gas companies, for a total amount of €5.8 billion. Furthermore, in the same year, UniCredit has experienced five-fold growth (from 60 to 340 € million) in financing in those companies that are expanding their fossil fuel business with projects promoting the exploration, production and transport…