As AGM season comes to an end, Reclaim Finance delivers its initial assessment. Our verdict is based exclusively on the annual general meetings of French financial actors. Spoiler alert: while the good news is rather meager, there are some bright spots. There have been some notable advancements that will give us, the optimists, enough energy to redouble our efforts in the battle for social and climate justice.
Reclaim Finance was involved in 6 AGMs: those of the 3 French banks — BNP Paribas on May 16th, Crédit Agricole on May 17th and Société Générale on May 23rd — two (re)insurers — AXA on April 27th and SCOR on May 25th — and finally, the asset manager Amundi on May 12th. Often, we were joined by representatives of communities fighting against projects developed by oil and gas majors, such as TotalEnergies and Shell.
We did not expect a warm welcome, but the reception we received seemed particularly hostile. The intensity and number of insults during some of the AGMs were particularly shocking. Nonetheless, we will highlight three significant facts.
Crédit Agricole acknowledges the need to stop developing new fossil fuel projects.
Let’s start with some good news: the CEO of Crédit Agricole acknowledged the need to rely on the recommendations of scientists and the projections of the International Energy Agency to identify the imperatives to meet climate goals. Philippe Brassac recognized that limiting the temperature rise to 1.5°C implies no longer “expanding fossil fuel capacities.”
It is a shame that it took him two years to acknowledge this (1), but better late than never. Let’s appreciate what this entails. If this is the imperative to be respected, Philippe Brassac will have to implement measures in the coming weeks that will enable him to meet it. He will need to go beyond his commitment to no longer directly finance new oil fields and include new gas production and transportation projects. Moreover, he must engage in tough discussions with his clients in the oil and gas sector, starting with TotalEnergies, of which Crédit Agricole is the primary financier.
BNP Paribas refuses to draw “red lines” and impede “good business”
BNP Paribas’ recent policy announcement clearly highlights the importance of the specific measures required to truly halt financing for oil and gas expansion. The bank has ceased direct financing for new oil and gas fields and has also cut a number of financing lines directed towards oil companies. However, no measures have been implemented to impede support directed towards oil and gas majors, which are among the largest developers of fossil fuels globally and also count as key clients of BNP Paribas.
When questioned about this significant loophole, Jean-Laurent Bonnafé was categorical: it is out of the question for France’s largest bank to set “red lines” – in other words, conditions – on its financing to oil majors. The “good business” that the bank engages in with Shell, BP, and others can accommodate “conversations,” but not strict restrictions, let alone any hindrance that would impede the goose that lays the golden eggs: the development of new oil and gas projects.
SCOR makes the only announcement of the season, reminding AXA that gas is not a transition fuel
The only significant announcement came from SCOR, which committed to no longer provide coverage for new gas fields. While the reinsurer did not go as far as addressing the development of new LNG terminals, the measure is still enough to cast a shadow over AXA, which is now the last major European (re)insurer to still support new gas fields. Despite their clear incompatibility with a credible 1.5°C trajectory, Thomas Buberl, the CEO of AXA, once again defended this support in the name of the transition, relying on the disputed integration of certain gas power plants into the European taxonomy.
So, AGM season generated a lot of words, some tinged with greenwashing. The greatest affront to those already impacted by fossil fuels and climate change came from Société Générale, which promised to act but to “take its time.” But the picture is not as bleak as last year. We will ensure that promises are kept and can undoubtedly count on civil society not to stop targeting the financial actors behind TotalEnergies and others until real measures against oil and gas expansion are adopted.
