Financial institutions deserve blame as big polluters: Milieudefensie

Thirteen Dutch financial institutions are jointly responsible for emitting 244 million tons of CO2, Milieudefensie reported based on research. That is equivalent to almost 1.5 times the annual domestic emissions in the Netherlands. The financial institutions invest in or lend to companies that pump up oil and gas, for example.

The research carried out by Profundo on behalf of Milieudefensie shows that ING financed the most emissions at 102 million tons of CO2. Insurer Aegon came in second with 35 million tons of CO2. The researchers also investigated two other insurers, seven pension funds, and banks ABN Amro and Rabobank.

According to Milieudefensie director Donald Pols, these companies fuel climate change with their investments. “It is precisely banks, insurers, and pension funds that can reduce their emissions fairly quickly by choosing to finance clean companies instead of the polluting economy,” said Pols.

Milieudefensie wants the government to stop investments in the fossil fuel industry. “Only then can the financial sector become a flywheel for sustainability,” said Pols. “A government that continues to rely on the voluntary efforts of financial institutions that drop stitch after stitch is failing.”

The ultimate emissions from the use of goods and services, called scope 3 emissions, are not included in this study. This is because it is often unclear how much is emitted in this category. Profundo estimates it amounts to 869 million tons of CO2.