{"id":18763,"date":"2022-02-15T09:05:35","date_gmt":"2022-02-15T08:05:35","guid":{"rendered":"https:\/\/reclaimfinance.org\/site\/?p=18763"},"modified":"2023-02-08T15:38:40","modified_gmt":"2023-02-08T14:38:40","slug":"credit-agricole-dodgy-coal-deals-reveal-policy-breach","status":"publish","type":"post","link":"https:\/\/reclaimfinance.org\/site\/en\/2022\/02\/15\/credit-agricole-dodgy-coal-deals-reveal-policy-breach\/","title":{"rendered":"Cr\u00e9dit Agricole: dodgy coal deals reveal policy breach"},"content":{"rendered":"

In 2019, Cr\u00e9dit Agricole became the first major bank in the world to exclude coal developers and to request an exit plan from the sector from its coal clients. But three years later, new financial data reveals that the bank has failed to properly enforce its policy. Despite its commitments, Cr\u00e9dit Agricole has continued to finance companies, such as Glencore and Marubeni, despite their coal mines and coal power plant developments around the world. This analysis reveals the need for the French government and regulators to monitor the concrete application of the policies adopted by the financial institutions, and apply sanctions in case of policy breaches.<\/b><\/span><\/p>\n<\/div><\/div><\/div>

Cr\u00e9dit Agricole, a pioneer bank on coal<\/b><\/span><\/p>\n

In June 2019, Cr\u00e9dit Agricole became the first international bank to adopt a climate strategy worthy of the name, with pioneering restrictions on the coal industry. Cr\u00e9dit Agricole was the first major financial institution to address coal expansion, as well as require its clients to plan for a full coal phase out.<\/p>\n

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\u201dThe Group also undertakes to stop working with corporations currently developing or planning to develop new thermal coal capacities along the entire value chain (mining, production, utilities, and transport infrastructures).\u201d Press release<\/u>,<\/a> June 13th, 2019 (in French) <\/span><\/p>\n<\/blockquote>\n

NGOs across the world welcomed this policy, which has since become best practice at international level. But 2022 is time for a reality check: two years after the announcement of this policy, an in-depth scrutiny of Cr\u00e9dit Agricole transactions (1) shows that several of them are clearly in violation of the policy: Credit Agricole has recently funded several companies which do not have a coal exit plan in line with the bank\u2019s criteria and are still developing new coal plans.<\/p>\n

What did Cr\u00e9dit Agricole commit to exactly?<\/b><\/span><\/p>\n

A year after announcing its climate strategy, Credit Agricole adopted sectoral coal policies detailing new restrictions by its corporate and investment banking activity in three sub-sectors: mining<\/a>,<\/u> power<\/u><\/a>, and transport infrastructur<\/a>e<\/u>.<\/span><\/p>\n

The policies detailed the phased implementation of the restrictions and provided for a \u201ctransitional phased approach over the period 2020-2021\u201d for coal developers already in the bank\u2019s portfolio:<\/span><\/p>\n