Banks and fracked oil and gas
By: BankTrack
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Link to fracked oil and gas policy table
Link to fracked oil and gas exclusion table

What is fracked oil and gas?

Hydraulic fracturing, also known as fracking or hydrofracturing, has been on the rise in recent years, particularly in the United States, and so has its financing by the world’s biggest banks. Fracking is a technique for extracting oil and gas from shale rock, which is a sedimentary, laminated rock composed of very fine-grained fragments of clay. Although the technique is not new, its combination with the newer technique of horizontal drilling has led to the recent ‘fracking boom’. To extract shale oil or gas, first a vertical well is drilled until the shale formations are reached. Then the drilling proceeds horizontally. A mixture of water, chemicals, salts and acids is pumped at high pressure into the well creating fissures and cracks in the shale formation through which oil and gas can flow.

The epicenter of the fracking industry is the Permian basin in Texas and New Mexico, but many other fracking projects are initiated in other parts of the world as well. Fracking comes with severe social and environmental impacts. Recent studies and satellite observations have shown that a significant amount of fracked gas, mostly consisting of the powerful greenhouse gas methane, escapes from the wells, leading to an increase in atmospheric methane concentration. Fracking also uses enormous amounts of freshwater and has often been linked to widespread groundwater contamination. People living downwind of fracking wells often encounter smog and suffer from a variety of health issues including headaches, difficulty with breathing, nosebleeds and stress. A sharp increase in earthquake activity has also been reported at almost every large scale fracking operation.

Banks and fracked oil and gas

The severity of the climate crisis requires that banks must urgently take steps to disengage from financing business all activities and projects that continue the world's reliance on fossil fuels. Banks must therefore end support for all new fracked oil and gas projects and implement a full phase-out for financing fracked oil and gas, in line with the Paris climate agreement.

The top four financiers of the fracking industry are all US banks. Wells Fargo is the number one, having financed the fracking industry for a total of USD 54 billion since signing of the Paris Climate Agreement (2016-2020). Wells Fargo is followed by JPMorgan Chase, Citi and Bank of America who all financed the fracking industry with USD 40-52 billion over the same period.

Bank policies on fracked oil and gas are assessed below. These assessments follow the methodology of our Banking on Climate Chaos 2021 report, published in March 2021. The details section in the table contains further detail on the exact scoring per bank, as well as an overview of relevant policies. 

See here for banks' exposure to the fracked oil and gas sector in 2016-2020.

Bank policy scores on fracked oil and gas

BankLast update
Country
Score
Ranking
Details
Agricultural Bank of China
2021-03-24
CHN
0
Laggard
ANZ
2021-03-24
AUS
0
Laggard
Bank of America
2021-03-24
USA
0
Laggard
Bank of China
2021-03-24
CHN
0
Laggard
Bank of Communications
2021-03-24
CHN
0
Laggard
Bank of Montreal (BMO)
2021-03-24
CAN
0
Laggard
Barclays
2021-03-24
GBR
3
Laggard
BBVA
2021-03-24
ESP
0
Laggard
BNP Paribas
2021-03-24
FRA
7
Follower
Caixabank
2020-03-01
ESP
1
Laggard
Canadian Imperial Bank of Commerce (CIBC)
2021-03-24
CAN
0
Laggard
China CITIC Bank
2021-03-24
CHN
0
Laggard
China Construction Bank
2021-03-24
CHN
0
Laggard
China Everbright Bank
2021-03-24
CHN
0
Laggard
China Merchants Bank
2021-03-24
CHN
0
Laggard
China Minsheng Bank
2021-03-24
CHN
0
Laggard
Citi
2021-03-24
USA
0.5
Laggard
Commerzbank AG
2021-03-24
DEU
1
Laggard
Commonwealth Bank of Australia
2021-03-24
AUS
0.5
Laggard
Crédit Agricole
2021-03-24
FRA
0.5
Laggard
Crédit Mutuel
2021-03-24
FRA
2.5
Laggard
Credit Suisse Group
2021-03-24
CHE
0.5
Laggard
Danske Bank
2021-03-25
DNK
2
Laggard
DBS Bank
2020-03-01
SGP
0.5
Laggard
Deutsche Bank
2021-03-24
DEU
1.5
Laggard
DNB
2021-02-01
NOR
0
Laggard
DZ Bank
2021-03-24
DEU
1
Laggard
Goldman Sachs
2021-03-24
USA
0.5
Laggard
HSBC
2021-03-24
GBR
0.5
Laggard
Industrial and Commercial Bank of China (ICBC)
2021-03-24
CHN
0
Laggard
Industrial Bank of China
2021-03-24
CHN
0
Laggard
ING
2021-03-24
NLD
3
Laggard
Intesa Sanpaolo
2021-03-24
ITA
0
Laggard
JPMorgan Chase
2021-03-24
USA
0.5
Laggard
Jyske Bank
2021-02-01
DNK
0
Laggard
Lloyds Banking Group
2021-03-24
GBR
1
Laggard
Mitsubishi UFJ Financial Group (MUFG)
2021-03-24
JPN
0
Laggard
Mizuho
2021-03-24
JPN
0
Laggard
Morgan Stanley
2021-03-24
USA
0.5
Laggard
National Australia Bank
2021-03-24
AUS
0
Laggard
Natixis
2021-03-24
FRA
3
Laggard
NatWest
2021-03-24
GBR
2.5
Laggard
Nedbank Group
2021-04-22
ZAF
0
Laggard
Nordea
2021-03-24
FIN
3
Laggard
Nykredit
2021-02-01
DNK
0
Laggard
OCBC
2020-03-01
SGP
0
Laggard
Ping An Bank
2021-03-24
CHN
0
Laggard
Postal Savings Bank of China
2021-03-24
CHN
0
Laggard
Rabobank
2020-03-01
NLD
3
Laggard
Royal Bank of Canada (RBC)
2021-03-24
CAN
0
Laggard
Santander
2021-03-24
ESP
5
Follower
Sberbank
2021-03-24
RUS
0
Laggard
Scotiabank
2021-03-24
CAN
0
Laggard
Shanghai Pudong Development Bank
2021-03-24
CHN
0
Laggard
Shinhan Financial Group
2021-03-24
KOR
0
Laggard
Skandinaviska Enskilda Banken (SEB)
2021-02-01
SWE
10
Front runner
Société Générale
2021-03-24
FRA
1.5
Laggard
Sparebank 1 SR-Bank
2021-02-01
NOR
1
Laggard
Standard Chartered
2021-03-24
GBR
0.5
Laggard
State Bank of India
2021-03-24
IND
0
Laggard
Sumitomo Mitsui Banking Corporation (SMBC)
2021-03-24
JPN
0.5
Laggard
Sumitomo Mitsui Trust Holdings
2021-03-24
JPN
0
Laggard
Svenska Handelsbanken
2021-02-01
SWE
0.5
Laggard
Swedbank
2021-02-01
SWE
1
Laggard
Sydbank
2021-03-24
DNK
0
Laggard
TD
2021-03-24
CAN
0.5
Laggard
Truist Financial Corporation
2021-03-24
USA
0
Laggard
UBS
2021-05-03
CHE
0.5
Laggard
UniCredit Group
2021-03-24
ITA
4
Laggard
United Overseas Bank
2020-03-01
SGP
0
Laggard
US Bancorp
2021-03-24
USA
2.5
Laggard
Wells Fargo
2021-03-24
USA
0.5
Laggard
Westpac
2021-03-24
AUS
0
Laggard
Explanation

The point-based policy ranking assesses bank policies in four ways:

1) Restriction on direct financing for fracked oil and gas projects.

  • None (0), weak exclusion (1), moderate exclusion (2), strong exclusion (3)

2) Restriction on financing for companies that expand oil and gas fracking.

  • None (0), weak exclusion (2), strong exclusion (4)

3) The bank’s commitment to phase-out financing for oil and gas fracking.

  • None (0), reduction (1.5), weak phase-out (3), strong phase-out (5)

4) The bank’s commitment to exclude companies active in oil and gas fracking above a certain threshold.

  • None (0), enhanced due diligence (0.5), weak exclusion threshold (2), moderate exclusion threshold (4), strong exclusion threshold (5), full exclusion (6)

A bank can obtain a total of 18 policy points for its fracking policy. Based on this score banks are then classified as laggards, followers, front runners or leaders.

Laggard
Follower
Front runner
Leader
0 - 4.5 points
5 - 9 points
9.5 - 13.5 points
14 - 18 points

 

Banks excluding finance for fracked oil and gas

A number of banks have already taken steps to fully or partially exclude fracked oil and gas projects or companies involved in fracked oil and gas operations from their investments. The table below lists banks that have taken such steps. 

Exclusion table fracked oil and gas

BankLast update
Country
Project
Company
Details
Barclays
2021-03-24
GBR
BNP Paribas
2021-03-24
FRA
Caixabank
2020-03-01
ESP
Commerzbank AG
2021-03-24
DEU
Crédit Mutuel
2021-03-24
FRA
Danske Bank
2021-03-25
DNK
Deutsche Bank
2021-03-24
DEU
DZ Bank
2021-03-24
DEU
ING
2021-03-24
NLD
Lloyds Banking Group
2021-03-24
GBR
Natixis
2021-03-24
FRA
NatWest
2021-03-24
GBR
Nordea
2021-03-24
FIN
Rabobank
2020-03-01
NLD
Santander
2021-03-24
ESP
Skandinaviska Enskilda Banken (SEB)
2021-02-01
SWE
Société Générale
2021-03-24
FRA
Sparebank 1 SR-Bank
2021-02-01
NOR
Swedbank
2021-02-01
SWE
UniCredit Group
2021-03-24
ITA
US Bancorp
2021-03-24
USA
Explanation

This table lists banks that have adopted a full ( ) or partial ( ) exclusion policy for fracked oil and gas projects and/or companies. Click on 'Details' for the rationale of this assessment for each bank.

 

Feedback welcome

Our policy assessments are always a work in progress and we very much welcome any feedback, especially from banks included in them. You can of course also contact us for more information on specific scores and the latest policy changes. Please get in touch at climate@banktrack.org.

News

| |
Type:
Year:
blog
external news
our news

Banking on Climate Chaos 2021: World’s 60 largest banks have poured USD 3.8 trillion into fossil fuels since Paris Agreement

Even amidst the global economic downturn, fossil fuel financing numbers were higher in 2020 than 2016
2021-03-24 | Nijmegen | BankTrack, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Reclaim Finance, Sierra Club
blog
external news
our news

Fracking Fiasco: The banks that fueled the U.S. shale bust

New report names Wells Fargo and JPMorgan Chase as main players pouring big money into troubled industry
2020-09-24 | Oil Change International, Rainforest Action Network
blog
external news
our news

Deutsche Bank’s new policies: much needed movement, still a long way to Paris

2020-07-27 | Berlin, Frankfurt | urgewald
blog
external news
our news

Banking on Climate Change – Fossil Fuel Finance Report Card 2020

New report reveals global banks funneled USD 2.7 trillion into fossil fuels Since Paris Climate Agreement, with financing on the rise each year 
2020-03-18 | Nijmegen | BankTrack, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Reclaim Finance, Sierra Club
blog
external news
our news

UniCredit urged to do the final ‘right thing’ and drop the coal barons

2019-11-27 | Rome, Italy | BankTrack, ReCommon
blog
external news
our news

Banking on Climate Change – Fossil Fuel Finance Report Card 2019

World's top banks have poured $1.9 trillion into fossil fuel financing since the Paris Agreement was adopted, with financing on the rise each year
2019-03-20 | Nijmegen, the Netherlands | BankTrack, Honor the Earth, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Sierra Club
blog
external news
our news

BNP Paribas takes the global lead in excluding unconventional fossil fuels from portfolio

Other banks urged to follow suit, starting with the Equator banks
2017-10-12 | Nijmegen, Paris | BankTrack, Les Amis de la Terre

Documents

Type:
Year:
our publications

Banking on Climate Chaos 2021

Fossil Fuel Finance Report
2021-03-24 00:00:00 | BankTrack, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Reclaim Finance & Sierra Club
ngo documents

Fracking Fiasco: The banks that fueled the U.S. shale bust

2020-09-24 00:00:00 | Rainforest Action Network
our publications

Banking on Climate Change - Fossil Fuel Finance Report 2020

2020-03-18 00:00:00 | Rainforest Action Network, BankTrack, Indigenous Environmental Network, Oil Change International, Reclaim Finance, Sierra Club
other documents

Banking on Climate Change - Fossil Finance Report Card 2020 [Excel sheet]

Excel sheet with detailed bank policy scores
2020-03-18 00:00:00 | BankTrack, Rainforest Action Network, Indigenous Environmental Network, Oil Change International, Reclaim Finance, Sierra Club
our publications

Banking on Climate Change 2019

2019 Fossil Fuel Finance Report Card
2019-03-20 00:00:00 | BankTrack, Honor the Earth, Indigenous Environmental Network, Oil Change International, Rainforest Action Network, Sierra Club
ngo documents

Financing Climate Chaos

How Minnesota’s Banking Giants Prioritize Profit in the Face of Climate Change
2015-10-05 00:00:00 | MN 350
our publications

A Challenging Climate

What international banks should do to combat climate change
2007-12-12 00:00:00 | BankTrack