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Home › Campaigns › Banks, climate and energy › Banks and oil and gas
Banks and fracked oil and gas
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By: BankTrack

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Banking on Climate Change 2020 - Fracked oil and gas. Photo: Rainforest Action Network (RAN)

Go directly to: fracked oil and gas policy table or 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 U.S. banks. JP Morgan Chase is the number one, having financed the fracking industry for a total of USD 43 billion since signing of the Paris climate agreement (2016-2019). JP Morgan Chase is followed by Wells Fargo, Bank of America and Citigroup who all financed the fracking industry with USD 28-31 billion over the same period.

Bank policies on fracked oil and gas are scored below. These scores were originally published in our Banking on Climate Change 2020 report, and any policy changes implemented since then have been assessed using the same methodology. 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 2016-2019.

Bank policy scores on fracked oil and gas

BankLast update
Country
Details
Laggard
Follower
Front runner
Leader
Agricultural Bank of China
2020-03-01
CHN
0
0
0
China
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

ANZ
2020-03-01
AUS
0
0
0
Australia
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

Bank of America
2020-03-01
USA
0
0
0
United States
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

Bank of China
2020-03-01
CHN
0
0
0
China
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

Bank of Montreal (BMO Financial Group)
2020-03-01
CAN
0
0
0
Canada
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

Barclays
2020-03-30
GBR
3.5
3.5
0
United Kingdom
Profile
Laggard
3.5
Follower
Front runner
Leader
1585519200
Last update: 2020-03-30
Explanation

Total: 3.5 points out of 20

1.5 points for a weak exclusion of fracking projects: Barclays will not finance projects involving fracking in Europe, including the UK.

2 points for a weak exclusion threshold regarding fracking companies: Barclays will not provide any financing to companies primarily engaged in fracking activities in the UK and Europe. Any financing for a company involved in fracking activities outside the UK and Europe, is subject to enhance due diligence.

See: Banking on Climate Change - policy scores

Relevant policies
csr policies
2020-03-30 00:00:00

Position on climate change

2020-03-30 00:00:00
BBVA
2020-03-01
ESP
0
0
0
Spain
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

BNP Paribas
2020-03-01
FRA
9
9
0
France
Profile
Laggard
Follower
9
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 9 points out of 20

4 points for a strong exclusion of fracked oil and gas projects: BNP Paribas prohibits financing for fracked oil and gas exploration and production projects, and pipelines. 

5 points for a strong exclusion threshold for fracked oil and gas companies: BNP Paribas prohibits financing for companies (a) for which unconventional oil and gas (including fracked oil and gas) is a significant part of their reserves, (b) for which unconventional oil and gas accounts for a significant share of revenue, or (c) which own or operate pipelines or LNG terminals with a significant volume of unconventional oil and gas. 

See: Banking on Climate Change - policy scores

Relevant policies
csr policies
2017-12-19 00:00:00

Unconventional Oil and Gas - Sector Policy

2017-12-19 00:00:00
Caixabank
2020-03-01
ESP
1.5
1.5
0
Spain
Profile
Laggard
1.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 1.5 points out of 20

1.5 points for a weak exclusion of fracked oil and gas projects: CaixaBank prohibits financing for projects that involve extraction through fracking, but the policy does not cover fracking-related infrastructure.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2019-02-28 00:00:00

Environmental risk management policy

2019-02-28 00:00:00
China Construction Bank
2020-03-01
CHN
0
0
0
China
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

CIBC
2020-03-01
CAN
0
0
0
Canada
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

Citigroup
2020-03-01
USA
0.5
0.5
0
United States
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: Citi conducts enhanced due diligence for "clients with unconventional oil & gas operations in shale formations, including those utilizing hydraulic fracturing." 

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2020-07-31 00:00:00

Environmental and social policy framework

2020-07-31 00:00:00
csr policies
2017-12-31 00:00:00

Energy & Power Sector Framework

2017-12-31 00:00:00
Commerzbank AG
2020-03-01
DEU
4
4
0
Germany
Profile
Laggard
4
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 4 points out of 20

4 points for a strong exclusion of fracked oil and gas projects: Commerzbank rules out project finance for fracked oil and gas.

See: Banking on Climate Change - policy scores

Relevant policies
csr policies
2020-02-29 00:00:00

Policy framework for handling environmental and social risks in its core business

2020-02-29 00:00:00
Commonwealth Bank of Australia
2020-03-01
AUS
0.5
0.5
0
Australia
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: Commonwealth Bank explicitly requires that new oil and gas projects, including fracked oil and gas projects, be "in line with the goals of the Paris Agreement". While without further detail on implementation, this does not qualify as a project finance restriction, it does qualify for enhanced due diligence in the sector. 

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2019-11-14 00:00:00

Environmental and Social Framework

2019-11-14 00:00:00
Crédit Agricole
2020-03-01
FRA
0.5
0.5
0
France
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: Crédit Agricole has enhanced due diligence for fracked oil and gas companies. 

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2018-04-30 00:00:00

Sector policy shale oil and gas

2018-04-30 00:00:00
Credit Suisse Group
2020-03-01
CHE
0.5
0.5
0
Switzerland
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: Credit Suisse has enhanced due diligence for fracked oil and gas.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policiesprivate
2020-10-23 00:00:00

Summary of Sector Policies and Guidelines out of date

2020-10-23 00:00:00
DBS Bank
2020-03-01
SGP
0.5
0.5
0
Singapore
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: DBS has an enhanced due diligence procedure for customers whose activities include "exploration and production of assets such as shale oil and shale gas, which may involve the use of hydraulic fracturing."

See: Banking on Climate Change - policy scores 

Relevant policies
csr policiesprivate
2019-09-30 00:00:00

Our approach to responsible financing out of date

2019-09-30 00:00:00
Deutsche Bank
2020-07-27
DEU
2
2
0
Germany
Profile
Laggard
2
Follower
Front runner
Leader
1595800800
Last update: 2020-07-27
Explanation

Total: 2 points out of 20

1.5 points for a weak exclusion of fracked oil and gas projects: Deutsche Bank will not finance oil and gas projects via hydraulic fracturing in countries with extremely high water stress.

0.5 point for enhanced due diligence regarding fracked oil and gas companies: Deutsche Bank has enhanced due diligence for fracked oil and gas exploration and extraction. 

See: Banking on Climate Change - policy scores

Relevant policies
csr policies
2020-07-27 00:00:00

Environmental and Social Policy Framework July 2020

2020-07-27 00:00:00
References
2020-7-27

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

2020-7-27
urgewald
Goldman Sachs
2020-03-01
USA
0.5
0.5
0
United States
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: Goldman Sachs conducts enhanced due diligence "for transactions involving new unconventional oil & gas and hydraulic fracturing."

See: Banking on Climate Change - policy scores 

Relevant policies
csr policiesprivate
2019-12-15 00:00:00

Environmental Policy Framework out of date

2019-12-15 00:00:00
HSBC
2020-04-23
GBR
0.5
0.5
0
United Kingdom
Profile
Laggard
0.5
Follower
Front runner
Leader
1587592800
Last update: 2020-04-23
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: HSBC conducts enhanced due diligence for new fracked oil and gas. 

See: Banking on Climate Change - policy scores 

Relevant policies
csr policiesprivate
2020-02-15 00:00:00

Energy policy out of date

2020-02-15 00:00:00
Industrial and Commercial Bank of China (ICBC)
2020-03-01
CHN
0
0
0
China
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

ING Group
2020-03-01
NLD
3.5
3.5
0
Netherlands
Profile
Laggard
3.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 3.5 points out of 20

1.5 points for a weak exclusion of fracked oil and gas projects: ING prohibits project financing for "mining, exploration and upgrading of shale gas in Europe."

2 points for a weak exclusion threshold for fracked oil and gas companies: ING prohibits financing for companies >30% reliant on European shale gas. 

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2019-07-01 00:00:00

Environmental and Social Risk Framework

2019-07-01 00:00:00
Intesa Sanpaolo
2020-03-01
ITA
0
0
0
Italy
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

JPMorgan Chase
2020-03-01
USA
0.5
0.5
0
United States
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: JPMorgan Chase conducts enhanced due diligence for "any transaction with a client engaged in the exploration and/or extraction of shale oil or natural gas using hydraulic fracturing."

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2020-02-25 00:00:00

Environmental and social policy framework

2020-02-25 00:00:00
Mitsubishi UFJ Financial Group (MUFG)
2020-03-01
JPN
0
0
0
Japan
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

Mizuho
2020-03-01
JPN
0
0
0
Japan
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

Morgan Stanley
2020-03-01
USA
0.5
0.5
0
United States
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: Morgan Stanley conducts enhanced due diligence for transactions related to exploration and production of shale oil or gas using hydraulic fracturing.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2020-04-22 00:00:00

Environmental and social risk policy statement

2020-04-22 00:00:00
National Australia Bank
2020-03-01
AUS
0
0
0
Australia
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

Natixis
2020-05-18
FRA
6.5
6.5
0
France
Profile
Laggard
Follower
6.5
Front runner
Leader
1589752800
Last update: 2020-05-18
Explanation

Total: 6.5 point out of 20

1.5 points for a weak exclusion of fracking projects: BPCE/Natixis will no longer finance shale oil and gas exploration and production projects worldwide. No mention of infrastructure.

5 points for a strong exclusion threshold regarding fracking companies: BPCE/Natixis pledged to halt financing companies whose activity is reliant by more than 25% on shale oil and gas exploration and production.

For the most recent policy updates by Natixis on fracking, see the press release below. These updates are not yet integrated in Natixis' previous policy.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2018-11-23 00:00:00

ESR Sector Policy - Oil and Gas

2018-11-23 00:00:00
References
2020-5-18

Natixis announces withdrawal from shale oil and gas and accelerates its complete exit from the coal industry

2020-5-18
Natixis
NatWest Group (formerly RBS)
2020-03-01
GBR
3.5
3.5
0
United Kingdom
Profile
Laggard
3.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 3.5 points out of 20

1.5 points for a weak exclusion of fracked oil and gas projects: RBS prohibits financing for "projects involving hydraulic fracturing (‘fracking’) for oil and gas." This does not merit "strong exclusion" because it is not clear that it covers fracking-related infrastructure, such as fracked oil and gas pipelines.

1.5 points for the commitment to reduce financing for fracked oil and gas companies: RBS prohibits "lending to major Oil and Gas producers, unless they have a credible transition plan aligned with the 2015 Paris Agreement in place by the end of 2021," which includes some fracked oil and gas companies. This qualifies as a reduction because it only applies to "major" O&G companies (to qualify for phase-out, a commitment must cover the entire sector).

0.5 point for enhanced due diligence regarding fracked oil and gas: RBS' prohibition on "lending to major Oil and Gas producers, unless they have a credible transition plan aligned with the 2015 Paris Agreement in place by the end of 2021" could be strengthened with further clarification on what Paris Alignment means to RBS. In the meantime, this qualifies as enhanced due diligence for fracked oil and gas companies.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2020-04-28 00:00:00

Oil & Gas sector policy

Updated February 2020
2020-04-28 00:00:00
csr policies
2020-02-14 00:00:00

Climate ambition

2020-02-14 00:00:00
OCBC
2020-03-01
SGP
0
0
0
Singapore
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

Rabobank
2020-03-01
NLD
6
6
0
Netherlands
Profile
Laggard
Follower
6
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 6 points out of 20

4 points for a strong exclusion of fracked oil and gas projects: Rabobank prohibits financing for shale oil and gas exploration, production, transport, processing, or refining projects.

2 points for a weak exclusion threshold for fracked oil and gas companies: Rabobank prohibits financing for majority shale gas exploration and production companies.

See: Banking on Climate Change - policy scores

Relevant policies
csr policies
2019-08-27 00:00:00

Sustainability Policy Framework

2019-08-27 00:00:00
Royal Bank of Canada
2020-03-01
CAN
0
0
0
Canada
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

Santander
2020-03-01
ESP
0.5
0.5
0
Spain
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: Santander conducts enhanced due diligence on transactions related to shale oil and gas.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2020-01-21 00:00:00

Energy sector policy

2020-01-21 00:00:00
Scotiabank
2020-03-01
CAN
0
0
0
Canada
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

Société Générale
2020-03-01
FRA
0.5
0.5
0
France
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: Société Générale conducts enhanced due diligence for transactions related to shale oil and gas.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2018-05-18 00:00:00

Sector policy oil and gas

2018-05-18 00:00:00
Standard Chartered
2020-03-01
GBR
0.5
0.5
0
United Kingdom
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: Standard Chartered conducts enhanced due diligence for clients involved with fracking.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2019-09-19 00:00:00

Extractive Industries Position Statement

2019-09-19 00:00:00
Sumitomo Mitsui Banking Corporation (SMBC)
2020-05-01
JPN
0.5
0.5
0
Japan
Profile
Laggard
0.5
Follower
Front runner
Leader
1588284000
Last update: 2020-05-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracking companies: SMBC conducts enhanced due diligence when considering lending for shale oil and gas development (hydraulic fracturing).

See: Banking on Climate Change - policy scores

Relevant policies
csr policies
2020-04-16 00:00:00

Revision of ESG financing policies

2020-04-16 00:00:00
TD bank Financial Group
2020-03-01
CAN
0.5
0.5
0
Canada
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: TD conducts enhanced due diligence for oil and gas pipelines, including fracked oil and gas pipelines — but not for fracking itself.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2019-11-09 00:00:00

Non-Retail Environmental and Social Credit Risk Process (Updated November 2020)

2019-11-09 00:00:00
csr policies
2019-06-24 00:00:00

Responsible Financing

Page 17 of TD's CSR report 2018
2019-06-24 00:00:00
UBS
2020-03-01
CHE
0.5
0.5
0
Switzerland
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: UBS conducts enhanced due diligence only for "transactions with companies that practice hydraulic fracturing in environmentally and socially sensitive areas."

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2020-04-21 00:00:00

Climate-related standards in the enery and utilities sectors

Page 56 of the UBS' CSR report 2019
2020-04-21 00:00:00
UniCredit Group
2020-03-01
ITA
8
8
0
Italy
Profile
Laggard
Follower
8
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 8 points out of 20

3 points for a moderate exclusion of fracked oil and gas projects: UniCredit prohibits financing for shale oil and gas extraction projects (including the use of fracking to extract shale oil and gas), as well as "pipelines and other infrastructure SOLELY related" to shale oil and gas. This pipeline commitment is too narrow to merit "strong exclusion."

5 points for a strong exclusion threshold for fracked oil and gas companies: UniCredit requires new and existing clients to get ≤25% of their revenue from shale oil and gas. For existing clients above that threshold, they must have a plan to get below that threshold, to be evaluated annually.

See: Banking on Climate Change - policy scores

Relevant policies
csr policies
2019-11-27 00:00:00

Arctic and Non-Conventional Oil & Gas Industry Sector Policy

2019-11-27 00:00:00
United Overseas Bank
2020-03-01
SGP
0
0
0
Singapore
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

US Bancorp
2020-03-01
USA
2
2
0
United States
Profile
Laggard
2
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 2 points out of 20

1.5 points for a weak exclusion of fracked oil and gas projects: US Bank prohibits project financing for the construction of oil pipelines, which includes fracked oil and gas pipelines. But the bank does not prohibit financing for fracked oil and gas extraction projects.

0.5 point for enhanced due diligence regarding fracked oil and gas: US Bank conducts enhanced due diligence for hydraulic fracturing.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2020-02-11 00:00:00

Environmental responsibility policy

2020-02-11 00:00:00
Wells Fargo
2020-03-01
USA
0.5
0.5
0
United States
Profile
Laggard
0.5
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0.5 point out of 20

0.5 point for enhanced due diligence regarding fracked oil and gas companies: Wells Fargo conducts enhanced due diligence for customers involved with fracking.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2018-06-30 00:00:00

Environmental and Social Risk Management Framework

2018-06-30 00:00:00
Westpac Banking Corporation
2020-03-01
AUS
0
0
0
Australia
Profile
Laggard
0
Follower
Front runner
Leader
1583017200
Last update: 2020-03-01
Explanation

Total: 0 points out of 20

See: Banking on Climate Change - policy scores

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 (1.5), moderate exclusion (3), strong exclusion (4)

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

  • None (0), weak exclusion (3), strong exclusion (5)

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), strong exclusion threshold (5), full exclusion (6)

A bank can obtain a total of 20 policy points for its fracking policy. Based on this score banks are then classified as laggards (0-5 points), followers (5.5-10 points), front runners (10.5-15 points) or leaders (15.5-20 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
Details
Project
Company
Barclays
2020-05-30
GBR
0
-2
United Kingdom
Profile
Project
Company
1590789600
Last update: 2020-05-30
Explanation

Barclays does not finance projects involving fracking in Europe, including the UK.

Barclays does not provide any financing to companies primarily engaged in fracking activities in the UK and Europe.

See: Banking on Climate Change - policy scores

Relevant policies
csr policies
2020-03-30 00:00:00

Position on climate change

2020-03-30 00:00:00
BNP Paribas
2020-03-01
FRA
9
9
99
France
Profile
Project
Company
9
1583017200
Last update: 2020-03-01
Explanation

BNP Paribas prohibits financing for fracked oil and gas exploration and production projects, and pipelines. 

BNP Paribas further prohibits financing for companies (a) for which unconventional oil and gas (including fracked oil and gas) is a significant part of their reserves, (b) for which unconventional oil and gas accounts for a significant share of revenue, or (c) which own or operate pipelines or LNG terminals with a significant volume of unconventional oil and gas. 

See: Banking on Climate Change - policy scores

Relevant policies
csr policies
2017-12-19 00:00:00

Unconventional Oil and Gas - Sector Policy

2017-12-19 00:00:00
Caixabank
2020-03-01
ESP
1.5
1.5
-1
Spain
Profile
Project
1.5
Company
1583017200
Last update: 2020-03-01
Explanation

CaixaBank prohibits financing for projects that involve extraction through fracking. The policy does not cover fracking-related infrastructure.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2019-02-28 00:00:00

Environmental risk management policy

2019-02-28 00:00:00
Commerzbank AG
2020-03-01
DEU
4
4
100
Germany
Profile
Project
4
Company
1583017200
Last update: 2020-03-01
Explanation

Commerzbank rules out project finance for fracked oil and gas.

See: Banking on Climate Change - policy scores

Relevant policies
csr policies
2020-02-29 00:00:00

Policy framework for handling environmental and social risks in its core business

2020-02-29 00:00:00
Deutsche Bank
2020-07-27
DEU
0
-1
Germany
Profile
Project
Company
1595800800
Last update: 2020-07-27
Explanation

Deutsche Bank will not finance oil and gas projects via hydraulic fracturing in countries with extremely high water stress.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2020-07-27 00:00:00

Environmental and Social Policy Framework July 2020

2020-07-27 00:00:00
References
2020-7-27

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

2020-7-27
urgewald
ING Group
2020-03-01
NLD
3.5
3.5
-2
Netherlands
Profile
Project
3.5
Company
1583017200
Last update: 2020-03-01
Explanation

ING prohibits project financing for "mining, exploration and upgrading of shale gas in Europe." Since the exclusion only applies to Europe this counts as a weak exclusion policy. 

ING prohibits financing for companies >30% reliant on European shale gas. This counts as a weak exclusion threshold. 

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2019-07-01 00:00:00

Environmental and Social Risk Framework

2019-07-01 00:00:00
Natixis
2020-05-18
FRA
0
-2
France
Profile
Project
Company
1589752800
Last update: 2020-05-18
Explanation

BPCE/Natixis does not finance shale oil and gas exploration and production projects worldwide. Its policy update does not mention infrastructure.

BPCE/Natixis pledged to halt financing companies whose activity is reliant by more than 25% on shale oil and gas exploration and production.

For the most recent policy updates by Natixis on fracking, see the press release below. These updates are not yet integrated in Natixis' previous policy.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2018-11-23 00:00:00

ESR Sector Policy - Oil and Gas

2018-11-23 00:00:00
References
2020-5-18

Natixis announces withdrawal from shale oil and gas and accelerates its complete exit from the coal industry

2020-5-18
Natixis
NatWest Group (formerly RBS)
2020-03-01
GBR
3.5
3.5
-1
United Kingdom
Profile
Project
3.5
Company
1583017200
Last update: 2020-03-01
Explanation

RBS prohibits financing for "projects involving hydraulic fracturing (‘fracking’) for oil and gas." This does not merit "strong exclusion" because it is not clear that it covers fracking-related infrastructure, such as fracked oil and gas pipelines.

See: Banking on Climate Change - policy scores 

Relevant policies
csr policies
2020-04-28 00:00:00

Oil & Gas sector policy

Updated February 2020
2020-04-28 00:00:00
csr policies
2020-02-14 00:00:00

Climate ambition

2020-02-14 00:00:00
Rabobank
2020-03-01
NLD
6
6
99
Netherlands
Profile
Project
Company
6
1583017200
Last update: 2020-03-01
Explanation

Rabobank prohibits financing for shale oil and gas exploration, production, transport, processing, or refining projects.

Rabobank prohibits financing for majority shale gas exploration and production companies.

See: Banking on Climate Change - policy scores

Relevant policies
csr policies
2019-08-27 00:00:00

Sustainability Policy Framework

2019-08-27 00:00:00
UniCredit Group
2020-03-01
ITA
8
8
-2
Italy
Profile
Project
Company
8
1583017200
Last update: 2020-03-01
Explanation

UniCredit prohibits financing for shale oil and gas extraction projects (including the use of fracking to extract shale oil and gas), as well as "pipelines and other infrastructure SOLELY related" to shale oil and gas. This pipeline commitment is too narrow to merit "strong exclusion."

UniCredit requires new and existing clients to get ≤25% of their revenue from shale oil and gas. For existing clients above that threshold, they must have a plan to get below that threshold, to be evaluated annually.

See: Banking on Climate Change - policy scores

Relevant policies
csr policies
2019-11-27 00:00:00

Arctic and Non-Conventional Oil & Gas Industry Sector Policy

2019-11-27 00:00:00
US Bancorp
2020-03-01
USA
2
2
-1
United States
Profile
Project
2
Company
1583017200
Last update: 2020-03-01
Explanation

US Bank prohibits project financing for the construction of oil pipelines, which includes fracked oil and gas pipelines. But the bank does not prohibit financing for fracked oil and gas extraction projects which makes it a weak exclusion policy. 

See: Banking on Climate Change - policy scores 

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

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, Re:Common
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:
ngo documents
2020-09-24 00:00:00

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

2020-09-24 00:00:00 | Rainforest Action Network
our publications
2020-03-18 00:00:00

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
our publications
2020-03-18 00:00:00

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
2019-03-20 00:00:00

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
2015-10-05 00:00:00

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
2007-12-12 00:00:00

A Challenging Climate

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