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Fossil-Fuel Deals Aren’t Worth It for Banks, Climate Group Says

Fees from arranging bond sales for coal, oil and gas companies are a fraction of the industry’s total corporate debt underwriting revenue.

Cooling towers at the Jaenschwalde lignite coal-fired power plant, in Peitz, Germany. 

Cooling towers at the Jaenschwalde lignite coal-fired power plant, in Peitz, Germany. 

Photographer: Krisztian Bocsi/Bloomberg
Corrected

The bond underwriting fees banks earn from fossil-fuel companies are not worth it given the associated environmental impact and reputational risk, according to a group of climate-focused nonprofits.

For 22 leading global banks, the multi-million dollar revenues from arranging bond sales for coal, oil and gas companies pale in comparison to the climate impact of their emissions profile, the Toxic Bonds campaign said, citing an analysis of data from firms including Bloomberg LP (the parent of Bloomberg News).