US financial giants pull out of environmental standards initiative
Big American banks have exited the Equator Principles, reflecting a troubling retreat from environmental and social risk management in project financing.
Nina Lakhani and Dominic Rushe report for The Guardian.
In short:
- The Equator Principles, guiding risk management in projects with environmental and social impacts, have lost key U.S. banks including Citi, Bank of America, JPMorgan Chase, and Wells Fargo.
- This withdrawal has sparked outrage among climate activists, criticizing the banks for neglecting fundamental climate and human rights obligations.
- As U.S. banks backtrack on climate commitments, regulatory pressure rises against institutions endorsing 'woke capitalism', influencing corporate environmental strategies.
Key quote:
"It is becoming increasingly apparent these banks do not care about anything other than the bottom line."
— Richard Brooks, climate finance director at Stand.earth
Why this matters:
The exodus of major banks from the Equator Principles signals a shift in the financial industry's approach to climate change and could undermine the well-being of communities directly impacted by financed projects. This development counters broader national trends toward responsible investing, with potential long-term health and environmental consequences.
Be sure to read Pete Myers’ piece about how economics and environmental issues are so intertwined.
