Banks Face Scrutiny Over Mountaintop Removal Coal Mining Financing

Strategic Insights -

Rainforest Action Network (RAN) and the Sierra Club released a report card ranking ten of the world's largest banks on their financing of mountaintop removal coal mining projects. The report found that since 2010, PNC, Citi, and UBS have been the top three financiers of the destructive mining practice, providing over $2.5 billion in loans and bonds to companies that practice it. The report also highlights the efforts of some banks, such as Credit Suisse and Wells Fargo, to strengthen their policies and cease their financial support for mountaintop removal.

Key Takeaways:

  • The top three financiers of mountaintop removal coal mining since 2010 are PNC, Citi, and UBS, which have provided over $2.5 billion in loans and bonds to companies practicing this destructive mining practice.
  • Deutsche Bank and GE Capital received failing grades for having no policy in place to guide funding of mining companies.
  • Credit Suisse and Wells Fargo were found to have the strongest policies in the sector, with Credit Suisse earning an "A-" for promoting responsible mining practices.
  • The report card calls for the ten banks reviewed to strengthen their policies and cease their financial support for mountaintop removal.
  • Since last year's report card, there have been five new policies on mountaintop removal from Chase, Wells Fargo, PNC, UBS, and Credit Suisse.
  • The report highlights the devastating impact of mountaintop removal mining, which has buried nearly 2,000 miles of streams and threatens to destroy 1.4 million acres of land by 2020.
  • The mining destroys Appalachian communities, the health of coalfield residents, and any hope for positive economic growth.

Statistics:

  • Over $2.5 billion in loans and bonds have been provided by the ten banks under review to companies practicing mountaintop removal coal mining since 2010.
  • 99 out of 202 mountaintop removal permits reviewed by the EPA in 2010 were denied or withdrawn, 84 are still pending, and 18 have been approved.
  • In 2010, coal production figures for the mountaintop removal sector were in decline.
  • Mountaintop removal mining has buried nearly 2,000 miles of streams and threatens to destroy 1.4 million acres of land by 2020.

Sources:

  • "Report Card: The World's Largest Banks and Mountaintop Removal Coal Mining" by Rainforest Action Network and the Sierra Club (no date)
  • Interview with Amanda Starbuck, Rainforest Action Network (no date)
  • Interview with Mary Anne Hitt, Director of the Sierra Club's Beyond Coal Campaign (no date)