Almost 60 non-governmental organisations (NGOs) have urged banks and investors to stop funding TotalEnergies, accusing the company of pursuing a ‘climate-destroying strategy’.
These organisations consist largely of French groups, such as Friends of the Earth and Attac; African groups, like Justiça Ambiental in Mozambique and Cecic in Uganda; as well as other international groups, including Reclaim Finance and Extinction Rebellion. According to their statement, about 70% of TotalEnergies’ funding originates from its fundraising on the financial markets, through issuing bonds.
Reportedly, the company has 45 loans on the market, with ten set to expire between 2024 and 2025. Normally, these debts are repaid either with the company’s own funds or by securing a new loan.
The NGOs have written letters to 24 banks, including BNP Paribas, HSBC, JPMorgan, calling on them to no longer underwrite or facilitate bond issues for TotalEnergies. Six asset managers – among them Amundi, Blackrock, and Allianz – are called upon to deny the company any future loans.
In their statement, the NGOs explain that by enabling TotalEnergies to raise cash on the bond market, these financial institutions are indirectly helping finance the company’s new oil and gas projects.
“Bonds are a true financial boon, more discreet than project financing, for TotalEnergies. [But] the financial participants involved in these bonds must accept their responsibility in funding the company’s climate-destroying strategy”, declared Lara Cuvelier, Sustainable Investment Campaign Officer for Reclaim Finance, in the official release.
