• European banks are massively fuelling the petrochemical boom despite the associated climate, environmental and health risks
• BASF, Dow, ExxonMobil and LyondellBasell alone receive €11.6 billion in financing for their business activities
• Despite a threefold increase in greenhouse gas emissions, the petrochemical industry remains largely overlooked in many banks’ sustainability policies

European banks are providing extensive and continuous support for the expansion of the petrochemical industry, which is associated with significant risks. This is revealed by the new Dirty Profits 13 report by Facing Finance. Between January 2023 and December 2025, the German and European banks examined provided four major petrochemical corporations, BASF, Dow, ExxonMobil and LyondellBasell, with a total of €11.6 billion in financing. In addition, as of the end of 2025, the financial institutions examined held investments totalling €11.2 billion in the petrochemical companies analysed.

By financing these companies, banks are supporting an industry whose expansion entails significant climate, environmental and health risks. The petrochemical industry relies on fossil feedstocks and is closely linked to the production of plastics and synthetic fertilisers. Approximately 74% of petrochemicals are used to produce plastics or fertilisers. At the same time, greenhouse gas emissions from the petrochemical industry have tripled over the past 25 years.

Mina Schmidt, Project Coordinator of the Dirty Profits report, says: “While discussions about phasing out fossil fuels continue, the industry is further expanding its fossil-based business models through plastics and other petrochemical products. Banks are providing the capital needed for this expansion, thereby running the risk of financing climate and environmental risks that are still not adequately addressed in their own sustainability policies.”

The financing provided to the four largest corporations examined illustrates this particularly clearly. BASF received €4.7 billion, Dow €2.9 billion, ExxonMobil €2.3 billion and LyondellBasell €1.7 billion in financing, provided in particular by Deutsche Bank / DWS (€2.3 billion), HSBC (€2.2 billion) and Barclays (€1.4 billion). BASF was the only company examined to receive financing from all 15 financial institutions analysed.

The close relationship between the financial sector and fossil-based petrochemicals is also evident in investment holdings. ExxonMobil accounts for the largest share, at €8.35 billion. DWS, the investment subsidiary of Deutsche Bank, held €1.6 billion in investments in the petrochemical companies examined as of the reporting date. Swiss bank UBS held investments worth as much as €4.3 billion.

Petrochemicals remain a blind spot in banks’ policies

The research also reveals a gap in the sustainability and exclusion policies of the banks examined. While some banks have already introduced restrictions on specific fossil fuel activities, petrochemicals are often not recognised as a separate high-risk sector. For example, UBS’s sustainability and exclusion policies do not explicitly mention petrochemicals at all. At Société Générale, petrochemical activities are likewise not covered by its oil and gas policies.

Financing the sector also exposes banks to significant risks related to stranded assets. The report identifies at least seven categories of risk, including physical, regulatory, legal, technological, market, geopolitical and reputational risks. Regulatory changes and declining demand alone could turn substantial industry assets into stranded assets. The Carbon Tracker Initiative estimates that up to US$400 billion in petrochemical assets could be affected.

“Banks must stop treating petrochemicals as a marginal segment of the fossil fuel economy. Taking climate risks seriously also means addressing the financing of plastics, synthetic fertilisers and other petrochemical products,” says Frederike Potts, Managing Director of Facing Finance.

Facing Finance calls on banks to take action

“Financial institutions must recognise the petrochemical industry as a sector with significant climate, environmental and health impacts and adapt their financing and investment decisions, as well as their policies, accordingly,” emphasises Thomas Küchenmeister, Chair of the Board of Facing Finance e.V.

Banks should:

• Systematically incorporate petrochemical risks into their sustainability and risk assessments.
• Regularly review existing and planned financial relationships with companies across the petrochemical value chain.
• Apply particularly rigorous scrutiny to companies that fail to meet, postpone or weaken their climate targets.
• Initiate engagement processes when companies fail to implement binding sustainability requirements adequately.
• Develop a cross-sector strategy to promote a resource-efficient, low-emission and non-toxic circular economy.

Policymakers must also take action. Governments should recognise the petrochemical industry as an independent driver of the climate and environmental crises, limit the influence of fossil fuel and petrochemical lobbying on legislation, and prevent greenwashing through stricter regulation.

Further Information
The full report Dirty Profits 13: Petrochemicals Under the Radar – Plastics, Fertilisers and Bank Profits is available here.