Under pressure from investors, a number of banks and insurers have already cut links to the project
Amundi said it had warned the State Bank of India that it would remove one of the lender’s green bonds from a flagship fund if it helps fund a coal mine in Australia that has met stiff opposition from environmental groups. Amundi, who holds the bond in his Amundi Planet Emerging Green One fund, said he learned this week that the State Bank of India was considering funding the Carmichael thermal coal mine in Australia. Carmichael has received strong opposition from climate fighters because of the potential carbon emissions the mine would create at a time when many countries are giving up coal to help fight global warming.
Under pressure from investors, a number of banks and insurers have already cut ties to the project, most recently Lloyd’s insurer Apollo. Amundi’s Jean Jacques Barberis, director of institutional and corporate clients & ESG, said the asset manager contacted the bank to express his concern and sent a letter to senior management on Thursday.
The Amundi Fund – the largest green bond fund in emerging markets – seeks to invest in bonds that help finance green projects, but is also scrutinizing the issuer to ensure its other activities are « coherent ». . « We think SBI shouldn’t fund this project. Ultimately, it is their decision, but we were very clear that if they did decide we would divest immediately, « said Barberis.
Funding the mine is in « total contradiction » to the SBI activities funded by their green bond, he added. « We hired SBI and asked them not to participate (on the loan). . . and now we are waiting for your answers. « SBI was not immediately available to comment when Reuters contacted them. The news was previously reported by Environmental Finance.
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World News – AU – SBI Receives Bond Warning From France’s Amundi Over Coal Mine: Report