en English af Afrikaans sq Albanian ar Arabic hy Armenian az Azerbaijani eu Basque be Belarusian bg Bulgarian ca Catalan zh-CN Chinese (Simplified) zh-TW Chinese (Traditional) hr Croatian cs Czech da Danish nl Dutch et Estonian tl Filipino fi Finnish fr French gl Galician ka Georgian de German el Greek ht Haitian Creole iw Hebrew hi Hindi hu Hungarian is Icelandic id Indonesian ga Irish it Italian ja Japanese ko Korean lv Latvian lt Lithuanian mk Macedonian ms Malay mt Maltese no Norwegian fa Persian pl Polish pt Portuguese ro Romanian ru Russian sr Serbian sk Slovak sl Slovenian es Spanish sw Swahili sv Swedish th Thai tr Turkish uk Ukrainian ur Urdu vi Vietnamese cy Welsh yi Yiddish
Open Translation

LONDON: Seventy-five miles west of the Shetland Islands there is a new oil field project known as Cambo. It’s owned by Shell and a private-equity backed firm called Siccar Point Energy. They have applied for a licence from Boris Johnson’s government to start extracting the fossil fuel.

Activist lawyer group ClientEarth calls the 17 banks associated with the project hypocritical saying they cannot claim to be transitioning to net-zero while supporting new oil and gas drilling less than 400 miles from where COP26 will be held in November:

The plans have sparked significant controversy – if given the green light, the companies would be able to produce as much as 170 million barrels over 25 years, locking in 63.5 million tonnes of harmful greenhouse gas emissions in the project’s first phase alone.

It would also be one of the first proposals to receive approval since the International Energy Agency declared that there could be no new oil and gas supply projects if the world is to keep global warming within safe levels – up to a limit of 1.5°C.

Yet, major banks across the world continue to support the companies behind Cambo’s development. Barclays, HSBC, and Standard Chartered are among the many banks that fund or advise Shell and Siccar Point, effectively enabling the climate damage caused if the project went ahead.

At the same time, these banks have committed to address their climate impact. Each of them are members of the Net-Zero Banking Alliance or signatories of the Collective Commitment to Climate Action, meaning they have promised to align their portfolios with pathways to reach net-zero emissions by 2050.

This is why we’ve written to the 17 banking institutions calling out their hypocrisy and the disconnect between their words and actions.

These include: Bank of America, Barclays, BNP Paribas, BPCE/Natixis, Citi, Crédit Agricole, Credit Suisse, Deutsche Bank, HSBC, ING Bank, Lloyds, Morgan Stanley, Banco Santander, Société Générale, SpareBank 1 Markets, Standard Chartered and UBS.

Our lawyers have challenged these financial giants to justify their support of Shell and Siccar Point in light of the banks’ climate commitments, and warned that continuing to do business with the companies presents significant legal, financial and reputational risks.

We challenge the directors of every bank that is enabling the Cambo project to justify such hypocrisy. Not only are they putting their credibility and reputation on the line, but if the project proceeds they are unnecessarily exposing the bank to significant financial and legal risks with no clarity on how these will be managed.”

The banks’ promises under the Net-Zero Banking Alliance or Collective Commitment to Climate Action include reducing their emissions in line with science-based decarbonisation scenarios and engaging with their clients on their transition.

By contradicting these pledges, directors risk breaching their fiduciary duty to act in a way that promotes the success of the bank.

There is additional risk of the banks breaching regulatory requirements in relation to prudential risk management including failure to manage the stranded asset risk.

If approved, proposals to develop Cambo would lock in oil production up to 2050 or beyond. But these reserves could be rendered obsolete if new laws designed to tackle climate change were introduced.

ClientEarth has also highlighted the banks’ legal obligations under international standards such as the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises.

These include engaging with Cambo’s operators to influence them to stop pursuing the proposed development, and considering terminating their relationships if they refuse.

Aside from legal risk, banks could come under significant pressure by investors to withdraw financing, including through shareholder climate resolutions calling for strengthened energy policies, and votes against directors.

The sad fact is that the Cambo oil field is just one example of where these banks’ actions don’t match their words. What is it going to take for these institutions to listen to the science and start demanding that polluting companies stop oil and gas expansion immediately, or consider ending their relationships with clients that refuse?

It’s time for these powerful financial actors to put their money where their mouth is. With Cambo, they have the opportunity to help avoid millions of tonnes of harmful emissions from damaging our fragile climate even further and help get the world on track for net-zero.

According to Greenpeace UK, Siccar Point is registered in an offshore tax haven. Shell, which has a 30 percent stake in the Cambo project, paid no UK corporation tax in 2019 and has been ordered by a Dutch court to cut its oil production 45 percent by 2030. It has lodged an appeal.
Story Type: News

Vote for my Story

Our Rating: 9% - 1 votes

1000 Characters left

Latest News

October 22, 2021
Biodiversity Editor

Great Pacifc Garbage Patch cleanup begins

VICTORIA, BC: The Ocean Cleanup, The Netherlands-based non-profit technology company, has completed its proof of concept by collecting 28,659 kilos of trash from the Great Pacific Garbage Patch with support from two Maersk offshore supply vessels. The…
October 20, 2021
Emissions Editor

Governments to ignore 1.5°C limit with fossil fuel production

NAIROBI/STOCKHOLM: With less than two weeks to the start of the crucial COP26 climate conference in Glasgow, a new report says governments plan to produce more than double the amount of fossil fuels in 2030 required to limit global warming to 1.5°C, and 45…
October 20, 2021
Transportation Editor

Shippers want zero-carbon maritime operations by 2025

WASHINGTON, DC: In a clear signal to the maritime container industry, nine major shippers have announced they will switch all their ocean freight to vessels powered by zero-carbon fuels by 2040. Amazon, Brooks Running, Frog Bikes, IKEA, Inditex, Michelin,…
October 19, 2021
Biodiversity Editor

Mustard cuts aviation emissions 68 percent

ATLANTA: With IATA airlines committed to cutting 21.2 Gigatons of carbon emissions by 2050, one solution that could help is the use of a non-edible mustard crop to produce Sustainable Aviation Fuel (SAF). According to new research from University of Georgia…
October 19, 2021
People Editor

DHL Express - a great place to work for profit

OAKLAND, CA: Great Place to Work (GPTW) has published its 2021 top 25 best workplaces based on the opinions of 19.8 million employees from 10,000 companies in 106 countries worldwide. DHL Express came first followed by Cisco, Hilton, AbbVie, Salesforce, 3M,…
October 18, 2021
Circular Economy Editor

Restaurant chain recycles cooking oil as renewable diesel for truck fleet

HELSINKI: Hesburger, a Finnish restaurant chain, is supplying green energy company Neste with used cooking oil from 300 restaurants to be recycled as renewable diesel for its transport fleet. Every year, company restaurants in Finland, Estonia, Latvia and…
October 15, 2021
Transportation Editor

Port association supports global hydrogen initiative

TOKYO: Following the first meeting of the Global Ports Hydrogen Coalition this week, the International Association of Ports and Harbors (IAPH) has agreed to provide its Sustainability platform for Coalition projects. IAPH established the WPSP in 2018 to unite…
October 13, 2021
Circular Economy Editor

Vestas plans circular manufacturing for wind power components

AARHUS, Denmark: In a bid to remain competitive, Vestas plans to reduce the amount of manufacturing waste ending up in landfill to less than 1.0 percent by 2030 while ensuring an increase in recycling from 52 percent to over 94 percent. A new circularity…
October 13, 2021
Energy Editor

New net-zero energy handbook for COP26 attendees

PARIS: The International Energy Agency (IEA) has published its latest World Energy Outlook (WEO) as a handbook for attendees at the forthcoming UN COP26 climate conference in Glasgow from October 31. The special edition describes the opportunities to be taken…
October 11, 2021
Transportation Editor

Maritime sector wants IMO to adopt net-zero

LONDON: The International Chamber of Shipping (ICS), representing 80 percent of the maritime market, says it wants governments to ensure the International Maritime Organization (IMO) adopts a net-zero target by 2050. Echoing a call by the aviation sector, the…
October 11, 2021
Transportation Editor

Airlines agree 65 percent SAF use to achieve net-zero by 2050

BOSTON: With less than three weeks to the UN COP26 climate conference in Glasgow, IATA member airlines have resolved to achieve net-zero CO2e emissions by 2050. This means they will have to abate a total of 21.2 Gigatons by then. According to association…
October 08, 2021
Energy Editor

LNG-powered vessel in ammonia switch by 2023

HELSINKI: Wärtsilä and Norwegian ship owner Eidesvik Offshore are to convert an LNG-powered supply vessel to operate with an ammonia-fuelled combustion engine by the end of 2023. The conversion will allow the vessel to operate with a 70 percent ammonia blend…

We are using cookies

By continuing you are agreeing to our use of cookies

I understand