The figures offer the clearest signal yet that fossil-fuel exclusion policies among banks — driven by regulatory and reputational concerns — are shifting some oil, gas and coal assets to less transparent corners of the market. It’s a trend that investors say is only going to increase in the coming years.
The expectation is that some banks “will just exit” the loans market for coal, oil and even gas, said Ryan Dunfield, chief executive officer of SAF Group, one of the largest alternative lenders in Canada’s energy sector.
The shift is particularly pronounced among banks based in Europe, where climate regulations are stricter than in other jurisdictions. Lenders stepping up restrictions on fossil-fuel loans include BNP Paribas SA and ING Group NV. The trend is hardest felt by less diversified mid-sized companies with weaker environmental, social and governance policies, according to Dunfield.
European banks that used to…
