Banco Santander to stop funding coal-reliant companies by 2030

Spain’s Banco Santander SA (BME:SAN) will stop granting loans to companies operating in the thermal coal mining sector by 2030 as part of its sustainability commitments that will also see it achieve net zero carbon emissions by 2050.

The banking group said on Monday that the net-zero carbon goal will apply to its own operations, as well as to its power generation clients to whom it provides lending, advisory or investment services. The plan will be carried out in order to align with the goals of the Paris Agreement.

In order to support the decarbonisation of the economy, by 2030, Santander will cease extending loan financing to power generation clients that source more than 10% of their revenues from thermal coal operations. Additionally, it will stop its exposure to thermal coal mining globally, while raising or facilitating the mobilisation of EUR 120 billion (USD 145.8bn) in green finance by 2025.

“As one of the world’s largest banks, with 148 million customers, we have a responsibility and an opportunity to support the green transition, and encourage more people and businesses to go green,” said executive chairman Ana Botin.

The Spanish lender has pledged to issue more green bonds and start offering green products such as green mortgages, energy efficiency loans, financing for solar panel installations and electric vehicles.

Santander noted that it has provided debt financing for renewable energy projects totalling 13.77 GW in the past year. Its own operations are currently carbon neutral and it aims at using 100% renewables electricity in all countries in which it is doing business by 2025.

(EUR 1.0 = USD 1.215)

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