Engagement

We engaged with a major bank aiming to reduce its Scope 3 emissions as part of their Net Zero target by 2050, after it publicly announced their targets in February 2021. They also announced they would be aligning their power generation portfolio to the Paris Agreement by 2030 and no longer providing financial services to power generation clients with more than 10% of revenues dependent on thermal coal – whilst eliminating exposure to thermal coal mining worldwide.

We voiced concerns regarding the adverse impact this may have in emerging markets and whether counterparties would simply access capital through alternative sources. However, the group was able to demonstrate that its approach is founded on engagement and offering alternative business strategies.