Morgan Stanley, Wells Fargo Join Other Banks to Cut Coal Financing - The Minute
Morgan Stanley and Wells Fargo have announced changes in their financial policies to cut financing for the global coal industry. The banks join similar financing cuts at eight other banks. Bank of America, BNP Paribas, Citigroup, Credit Agricole, ING, Natixis, and Societe Generale enacted policies to end financing for coal-driven businesses earlier this year.
The policy adopted by Wells Fargo commits the bank to reduce its lending to coal mining companies. Morgan Stanley’s policy covers both lending and underwriting, and commits the bank to end financing for coal-fired power plant construction in developed countries.
A campaign by activists from the Rainforest Action Network to organize public pressure on the banks was influential in the resulting policy changes. The changes also follow calls from the Paris Pledge, a global coalition of over 160 global civil society organizations which has urged the banking sector to phase out financing for coal mining and coal-fired power. It’s more evidence that the financial sector is looking to renewable energy for future profits. I’m John Howell for 3BL Media.