Billionaire Sir Christopher Hohn has urged shareholders to vote in opposition to financial institution administrators concerned in “greenwashing”, and who foyer in opposition to local weather motion.
The hedge fund supervisor, who once had Britain’s highest salary at £1m a day, made headlines when he donated £50,000 to climate activist group Extinction Rebellion.
Hohn, who was once Rishi Sunak’s boss at hedge fund TCI, can also be one of many nation’s greatest philanthropists, and has pumped billions into his personal charity, The Youngsters’s Funding Fund Basis.
He stated: “Any financial institution making a internet zero promise whereas actively lobbying in opposition to essential local weather regulation – reminiscent of necessary disclosure of debtors’ emissions and local weather motion plans – is greenwashing. Shareholders ought to vote in opposition to the administrators of banks who’re hiding their publicity to local weather threat.”
Hohn’s assertion comes as InfluenceMap, a local weather thinktank, discovered that the world’s 30 largest listed monetary establishments are undermining their internet zero targets by persevering with to fund fossil gas enlargement and lobbying in opposition to makes an attempt to align monetary regulation with local weather objectives.
Their report reveals the finance sector is reluctant to introduce significant fossil gas exclusion insurance policies and has enabled no less than $740bn (£561bn) of financing for the fossil gas manufacturing sector in the course of the previous two years.
In accordance with the evaluation, JP Morgan was the most important enabler of fossil gas financing with $81bn in 2020-21, adopted by Citigroup with $69bn and Financial institution of America with $55bn. Regardless of setting a 2030 goal to cut back energy sector emissions, JP Morgan elevated its financing of coal manufacturing from $1.28bn in 2020 to $3.08bn in 2021.
Solely seven monetary establishments have set thermal coal exit plans according to the Worldwide Panel on Local weather Change’s tips on maintaining heating to 1.5C above pre-industrial ranges, and solely 4 (Barclays, BNP Paribas, ING and Société Générale) have dedicated to lowering their oil and fuel publicity by 2025. Nevertheless, a few of these insurance policies comprise loopholes permitting for continued fossil gas financing beneath sure circumstances.
This isn’t the primary time Hohn has taken a stand on local weather change. When he was revealed as XR’s single greatest donor, he stated: “Humanity is aggressively destroying the world with local weather change and there’s an pressing want for us all to get up to this truth.”