Chief executive Shemara Wikramanayake said coal had never been a large focus for the group, but in a rather conflicting statement, she noted the bank would remain committed to the oil and gas sector until new technologies are developed.
The plan, she said, is to fully divest any remaining interest in the sector within three years.
Banks across the globe are bowing to pressure from shareholders and lobby groups to avoid coal investments. Australia and New Zealand Banking Group (ANZ Bank), Commonwealth Bank of Australia and Westpac, three of the nation’s top four banks, have recently signalled their intention to stop coal financing.
The growing trend has left miners scrambling to source alternative funds for projects.
Yet, fossil fuel companies are worth $18 trillion in listed equity, making up a quarter of the total value of global equity markets, according to Carbon Tracker’s most recent estimate. They account for $8 trillion of corporate bonds, more than half the non-financial corporate bond market.
Unlisted debt — mostly owed to banks — could be four times greater, reaching almost $32 trillion, the London-based think tank suggests.
