5 March 2021
Eight
European banks have lent EUR 95 billion over the last three years to just 14
companies that are responsible for the plastic soup. Among these companies are
oil multinationals such as ExxonMobil and Shell, chemical giants such as BASF
and INEOS, and food giants such as Coca-Cola and Nestlé.
Almost 80%
of the capital was made available by just four banks: HSBC, Deutsche Bank, BNP
Parisbas and Santander. Very few or no environmental conditions were attached
to the loans.
Facing Finance, the German sister organisation of the Dutch Eerlijke Bankwijzer, concluded that the eight financial institutions are largely responsible for keeping the plastic soup going. Read the press release here and the English summary.
ING IS
LEAST BAD
The only Dutch bank to be examined was the ING. Of the eight financial institutions, the ING emerged as the best in terms of its plastics policy. The bank says that it takes the plastic problem seriously and it has subscribed to the Ellen MacArthur Foundation’s New Plastics Economy Global Commitment. The degree to which these promises are turned into deeds is, however, completely unclear. ING does not rule out investing in American shale gas and limits plastic reduction measures to its own offices.
CASE STUDY SHELL
Plastic
Soup Foundation contributed a case study about Shell’s plastic factory in
Pennsylvania to the report.
Shell
invests billions of dollars there in plastic production based on shale gas. The
company does not have any interest at all in reducing plastic and is banking on
a future in which ever more plastic will be used.
The flood
of new plastic not only adds to the plastic soup, but the energy intensive
plastic production is also a serious threat to achieving the climate goals.
Shell does not include the greenhouse gas emissions from plastic in its CO2
accounts as plastic is not an energy product.
RECOMMENDATIONS
The banks
look away. They talk a lot about reducing their own plastic consumption, but do
not set any conditions when lending capital to multinationals who earn their
living from the production and use of plastic. The report therefore contains
urgent recommendations for banks such as:
- compile a transparent plastic policy
that targets the entire plastic chain;
- uphold due diligence that targets
plastic reduction when extending credit;
- exclude companies working in shale
gas from capital grants to rapidly phase it out of the oil and gas sector;
- re-evaluate clients on the bases of
their plastic policy and require a plastic
avoidance strategy from these companies.
The Bankrolling
Plastics. The banks that fund plastic packaging pollution report published earlier this year, came to
comparable conclusions.
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