The bond-underwriting fees banks earn from fossil-fuel companies are not worth it, given the associated environmental impact and reputational risk, according to a group of climate-focused nonprofits.
For 22 leading global banks, the multimillion dollar revenues from arranging bond sales for coal, oil, and gas companies pale in comparison to the climate impact of their emissions profile, the Toxic Bonds campaign said, citing an analysis of data from firms including Bloomberg LP.
"Fossil-fuel companies need banks, but banks don't need fossil-fuel companies," said Alice Delemare Tangpuori, senior strategist at Bank on Our Future. "Coal, oil, and gas bond underwriting is no cash cow for banks. Rather, it's a sickly beast, putting banks' reputation and the future of our planet on the line."
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