The Oil Bank of Scotland - fuelling climate change

The Royal Bank of Scotland is covering up involvement in carbon emissions greater than those of the whole country of Scotland, according to new research published today, Monday 12 March 2007.[1] As the government prepares to publish its draft Climate Change Bill, the report “The Oil & Gas Bank” reveals the extent to which RBS-NatWest is providing the financial fuel driving climate change.

Publicly promoting itself as "The Oil & Gas Bank", RBS provides oil corporations with the cash to build and operate drilling rigs, pipelines and oil tankers in some of the world’s most sensitive and unstable places.[2] Bank loans play a key role in forcing open the new carbon frontier. RBS has financed oil projects in Nigeria, Angola and Ecuador that cause environmental destruction, disruption of indigenous peoples and increase conflict.

Mika Minio-Paluello of PLATFORM and the report’s lead author said "RBS-NatWest is locking vast emissions into our collective future. By identifying itself as “the Oil & Gas Bank”, RBS is brazenly embarking on a destructive binge with potentially devastating consequences for the planet.”

Andrew Simms, policy director of nef (the new economics foundation) said “At a time when the whole world is waking up to the reality of climate change, RBS is behaving like a corporate fossil. By aggressively pursuing a policy that squeezes the last drops of oil from the most sensitive and volatile regions on earth, they are helping to send us all in the direction of the dinosaurs.”

The report exposes the degree to which just one part of UK plc is fuelling climate change, and undermining efforts to reduce concentrations of carbon in the atmosphere.

By financing vast oil and gas projects, RBS loans lead to carbon emissions “embedded” in the activities of the fossil fuel sectors that tower above the bank’s direct, publicly disclosed carbon emissions that stem from its building use or business travel.

The emissions embedded within RBS project finance to oil and gas projects reached 36.9 million tonnes in 2005, equivalent to those of a quarter of all UK homes (6.2 million)
Yet RBS reported 2005 emissions as only 318,000 tonnes in its Corporate Responsibility Report – less than one hundredth of the 36.9 million tonnes RBS was responsible for through its financing of new oil and gas projects.
Provisional figures for 2006 already show that RBS annual emissions are greater than Scotland’s. [3]

Duncan McLaren, Chief Executive of Friends of the Earth Scotland said "Through its investments, Scotland's leading bank has been unmasked for helping to fuel climate change. The polluting emissions RBS are responsible for are on course to even dwarf that of Scotland as a nation. It's time for RBS to stop profiting from pollution."

Bronwen Thomas of national student network People & Planet said “Climate change is a massive issue amongst students, as big as apartheid was in the 1980s. Students are concerned that by opening NatWest accounts they will help push the atmosphere past its tipping point. Soon the Oil & Gas Bank might find their young customers switching to more climate-friendly alternatives.”

Johan Frijns of BankTrack stated “Identifying itself so brazenly with fossil fuels carries major reputational risks for RBS. The self-assigned title “The Oil & Gas Bank” could soon become a liability rather than a badge of success.”

-ENDS-

Notes for Editors:

For more information or to arrange an interview, please contact:

Mika Minio-Paluello at PLATFORM:
t: 0207 403 3738 m: 07766 175 641 e: mikaATplatformlondon.org

Ruth Potts at nef (the new economics foundation):
t: 020 7820 6357 m: 07749 026 203 e: ruth.pottsATneweconomics.org

Bronwen Thomas at People & Planet:
t: 01865 245 678 e: bronwenATpeopleandplanet.org

Lang Banks at Friends of the Earth Scotland:
t: 01315549977 e: lbanksATfoe-scotland.org.uk

Johan Frijns at BankTrack:

t: ++31 302334343 m: ++31 612421667 e: coordATbanktrack.org

[1] “The Oil & Gas Bank – RBS & the Financing of Climate Change” was produced by PLATFORM, BankTrack, Friends of the Earth Scotland, nef (the new economics foundation) and People & Planet. The report is available online here.

[2] The Royal Bank of Scotland owns NatWest and is the second largest bank in Europe. In December 2006, RBS launched www.theoilandgasbank.com as a new website.

[3] Provisional figures on information available show that RBS’ emissions for 2006 will be at least 43.7 million tonnes of CO2 emissions. Scotland’s emissions are expected to fall below 43 million tonnes.

[4] PLATFORM is a social and environmental research organization that provides a centre of expertise on the oil & gas industry. www.carbonweb.org

[5] BankTrack is an international network of civil society organisations and individuals tracking the operations of the private financial sector (commercial banks, investors, insurance companies, pension funds) and its effect on people and the planet. www.banktrack.org

[6] Friends of the Earth Scotland is an environmental justice charity working on policy, corporate campaigning and community action. It is part of the international Friends of the Earth network and has local groups across Scotland. www.foe-scotland.org.uk

[7] nef (the new economics foundation) is an independent think-and-do tank that inspires and demonstrates real economic well-being. It aims to improve quality of life by promoting innovative solutions that challenge mainstream thinking on economic, environment and social issues. www.neweconomics.org

[8] People & Planet is the national student network campaigning on world poverty, human rights and the environment. In November 2006 it launched a new climate change campaign challenging the financing of oil & gas extraction. www.peopleandplanet.org

News