HSBC under fire for $340m loan to energy firm involved in coal mine expansion

Despite pledge to halt fossil fuel financing

Valeria Martinez
clock • 3 min read

HSBC has extended a revolving credit facility to an energy company that is tearing down a German village to expand a large coal mine, despite its promise to “phase down” fossil fuel financing.

An entire village in West Germany is set to be demolished by energy giant RWE in order to make way for the expanded lignite coal mine, sparking outcry from climate protestors who have sought to barricade the settlement of Lützerath in order to stop the development this week. A report on Thursday by The Times, based on work by The Bureau of Investigative Journalism, said the banking giant provided $340m in funding as part of the RCF to RWE. According to the article, senior executives at the bank advised against the borrower disclosing the loan. An anonymous HSBC banker told TBIJ that i...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on ESG

JP Morgan AM cuts ties with climate change action group
ESG

JP Morgan AM cuts ties with climate change action group

Climate Action 100+

Eve Maddock-Jones
clock 15 February 2024 • 1 min read
Enter now for Investment Week's Sustainable Investment Awards 2024
ESG

Enter now for Investment Week's Sustainable Investment Awards 2024

Closing date of 6 April

Investment Week
clock 15 February 2024 • 3 min read
Liontrust hires sustainable investment analyst duo from Ninety One and abrdn
ESG

Liontrust hires sustainable investment analyst duo from Ninety One and abrdn

Connor Godsell and Linnea Bengtsson

Cristian Angeloni
clock 14 February 2024 • 1 min read
Trustpilot