Undermining our future A study of banks’ investments in selected companies attributable to fossil fuels and renewable energy A Fair Finance Guide International case study Embargo au jeudi 5 novembre 2015 00H01GMT Undermining our future A study of banks’ investments in selected companies attributable to fossil fuels and renewable energy A Fair Finance Guide International case study Ward Warmerdam Alexandra Christopoulou Anniek Herder Charissa Bosma Joeri de Wilde Michel Riemersma Jan Willem van Gelder With contributions by: Victoria Fanggidae, Evert Hassink, Petra Hamers, Soren Henriksen, Jakob König, Yann Louvel, Jesper Stegmann, Alexandre Naulot, Yuki Tanabe, Guilherme Teixeira, Frank Vanaerschot, Gine Zwart 2 November 2015 Contents Summary ..................................................................................................................... i Introduction ................................................................................................................ 1 Chapter 1 Background ...................................................................................... 2 1.1 What is at stake? ....................................................................................... 2 1.2 International initiatives ............................................................................. 4 Chapter 2 Methodology ..................................................................................... 9 2.1 Approach ................................................................................................... 9 2.2 Selected financial institutions .................................................................. 9 2.3 Selected companies ................................................................................ 12 2.3.1 Ownership forms ....................................................................................... 12 2.3.2 Selected sectors ....................................................................................... 13 2.3.3 Excluded sectors ....................................................................................... 19 2.3.4 Final definition ........................................................................................... 22 2.4 Types of finance ...................................................................................... 22 2.4.1 Corporate loans ........................................................................................ 22 2.4.2 Share issuances ....................................................................................... 23 2.4.3 Bond issuances ......................................................................................... 24 2.4.4 (Managing) shareholdings ......................................................................... 24 2.4.5 (Managing) investments in bonds .............................................................. 25 2.5 Time period.............................................................................................. 25 2.6 Financial institution feedback ................................................................ 25 2.7 Calculated elements ............................................................................... 26 2.7.1 Financial institution financing contributions ............................................... 26 2.7.2 Segment adjusters .................................................................................... 27 2.7.3 Power generation adjusters ....................................................................... 28 Chapter 3 Global analysis ............................................................................... 30 3.1 Loans and underwriting .......................................................................... 31 3.2 Shareholdings ......................................................................................... 32 Chapter 4 Top 25 financial institutions .......................................................... 33 4.1 Loans and underwriting .......................................................................... 33 4.1.1 Annual analysis ......................................................................................... 33 4.1.2 Rankings ................................................................................................... 35 4.2 Shareholdings ......................................................................................... 38 4.2.1 Annual analysis ......................................................................................... 38 4.2.2 Rankings ................................................................................................... 40 4.3 Financial institution analysis ................................................................. 42 4.3.1 Agricultural Bank of China (China) ............................................................ 43 4.3.2 Bank of America (United States) ............................................................... 46 4.3.3 Bank of China (China) ............................................................................... 50 4.3.4 Bank of Communications (China) .............................................................. 53 4.3.5 Barclays (United Kingdom) ........................................................................ 56 4.3.6 BNP Paribas (France) ............................................................................... 59 4.3.7 China Construction Bank (China) .............................................................. 62 4.3.8 Citigroup (United States) ........................................................................... 65 4.3.9 Crédit Agricole (France) ............................................................................ 68 4.3.10 Credit Suisse (Switzerland) ....................................................................... 71 4.3.11 Deutsche Bank (Germany) ........................................................................ 74 4.3.12 HSBC (United Kingdom) ........................................................................... 76 4.3.13 ICBC (Industrial and Commercial Bank of China – China)......................... 80 4.3.14 ING Group (Netherlands) .......................................................................... 83 4.3.15 JPMorgan Chase (United States) .............................................................. 86 4.3.16 Lloyds Banking Group (United Kingdom) .................................................. 89 4.3.17 Mitsubishi UFJ Financial (Japan) .............................................................. 92 4.3.18 Mizuho Financial (Japan) .......................................................................... 95 4.3.19 Royal Bank of Scotland (United Kingdom) ................................................ 98 4.3.20 Santander (Spain) ................................................................................... 100 4.3.21 Société Générale (France) ...................................................................... 103 4.3.22 Sumitomo Mitsui Financial (Japan) ......................................................... 105 4.3.23 UBS (Switzerland) ................................................................................... 108 4.3.24 UniCredit (Italy) ....................................................................................... 111 4.3.25 Wells Fargo (United States) .................................................................... 114 Chapter 5 Belgium ......................................................................................... 117 5.1 Loans and underwriting ........................................................................ 117 5.1.1 Annual analysis ....................................................................................... 117 5.1.2 Rankings ................................................................................................. 119 5.2 Shareholdings ....................................................................................... 120 5.2.1 Annual analysis ....................................................................................... 121 5.2.2 Rankings ................................................................................................. 122 5.3 Financial institution analysis ............................................................... 124 5.3.1 Argenta ................................................................................................... 124 5.3.2 Belfius Bank ............................................................................................ 125 5.3.3 BNP Paribas ........................................................................................... 127 5.3.4 Deutsche Bank ........................................................................................ 130 5.3.5 F. van Lanschot Bankiers ........................................................................ 133 5.3.6 ING Group .............................................................................................. 134 5.3.7 KBC Group ............................................................................................. 137 5.3.8 Triodos Bank ........................................................................................... 140 5.3.9 VDK Spaarbank ...................................................................................... 143 Chapter 6 Denmark ........................................................................................ 144 6.1 Loans and underwriting ........................................................................ 144 6.1.1 Annual analysis ......................................................................................