Over 200 global financial institutions now with coal exclusion policies

Written by Adam Cadle

04/05/2023

Over 200 global financial institutions have established coal exclusion policies, with divestment momentum away from coal accelerating in the last two years despite record profits being enjoyed by coal companies on the back of the energy crisis.

In its latest report, the Institute for Energy Economics and Financial Analysis (IEEFA) has found financial institutions including insurance companies, banks and asset managers divesting away from coal at a quicker rate as climate change becomes a priority globally. It took almost six years for the first 100 institutions to adopt coal exclusion policies, but since then the number has doubled in just over three years.

Europe leads the way with the highest number of financial institutions divesting from coal (114) and with more stringent exclusion policies compared to other regions.

Asia has shown a significant increase in divestment, jumping from only 10 financial institutions with coal exclusion policies between 2013 and April 2019 to 41 within the next three years.

IEEFA’s debt markets leader for Asia Pacific, Christina Ng, said: “Interestingly, it’s not the largest asset managers who are leading the way. It’s more the medium-sized ones who recognise their duty to clients. This is a reflection that the market is learning and learning fast amid regulators getting tough on greenwashing. Collectively, the whole finance ecosystem is working together to find where the issues are.”

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