Banks Allocate $286 Billion in Sustainability Loans to Polluting Industries

An investigation reveals that banks have issued over $286 billion in 'sustainability-linked loans' (SLLs) to major polluting companies, including those in fossil fuels and mining, since 2018. Critics argue these loans lack accountability, allowing companies to claim environmental improvements while continuing harmful practices. Although marketed as green financing, the loans often do not require funds to be directed toward sustainability targets, leading to accusations of greenwashing. Notable recipients include Shell and Drax, with some companies using the loans to expand polluting operations rather than reduce emissions. Despite the surge in climate change pressures, these financing mechanisms have been criticized for failing to deliver meaningful environmental benefits. The findings bring to light broader concerns about the integrity of green finance initiatives and their effectiveness in combating climate change.