The green hypocrisy of the banks

by time news

2023-12-06 22:21:08

Frankfurt financial center: Banks are reporting more than before about their commitment to climate protection. Image: conorcrowe – stock.adobe.com

A study comes to the conclusion that the more banks talk about green transformation in sustainability reports, the less green their lending is.

A study published by the European Central Bank (ECB) on Wednesday as a blog post on its website is harsh on Europe’s banks. It’s nothing less than the accusation of institutional green hypocrisy. “The ECB blog finds a contradiction: banks that talk more about their environmental policy and climate goals tend to lend more to brown sectors,” the article says.

The rule of thumb even applies: the greener a bank presents itself publicly, the less green it actually behaves in its everyday lending business. This observation is reminiscent of a debate about so-called “greenwashing” in the asset management of banks and fund companies, which recently heated up people’s minds.

#green #hypocrisy #banks

You may also like

Leave a Comment