Banks earn just a tiny fraction of their bond underwriting fees from fossil fuel companies, making these deals not worth it given the associated environmental impact and reputational risk, according to a group of climate-focused nonprofits.
For 22 leading global banks, revenue from arranging bond sales for coal, oil and gas companies represents an estimated 0.01% to 0.06% of their total corporate debt underwriting fees, the Toxic Bonds campaign said, citing an analysis of data from firms including Bloomberg.
¡°Fossil fuel companies need banks, but banks don¡¯t need fossil fuel companies,¡± said Alice Delemare Tangpuori, senior strategist at Bank on Our Future. ¡°Coal, oil and gas bond underwriting is no cash cow for banks. Rather, it¡¯s a sickly beast, putting banks¡¯ reputation and the future of our planet on the line.¡±
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