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Tuesday, June 28, 2022

Goldman Sachs Accused of Breaching 2019 Carbon Pledge

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The loan grant a peabody energy pore Goldman Sachs Gr by value 150 million dollars van against the 2019 Coal Promise to stop the financing of fossil fuels like coal, according to Patrick Temple-West at Financial Times.

The agreement, arranged to shore up the position derivatives of Peabody in the midst of the market turbulence caused by the crisis between Russia Ukraine, highlight the ambiguity of Goldman’s initial promise to phase out funding for thermal coal mining companies, environmentalists said. In 2019, the bank said it would only support companies that move away from coal at a reasonable pace.

“Goldman’s carbon pledge for 2019 was considered the strongest taken by any major US bank,” he said. Rainforest Action Networka nonprofit environmental organization based in San Francisco.

But now the Peabody deal “shows just how vague and therefore evasive politics is.” [del banco]”, said Alison Kirsch, Retired from RAN Policy and Research.

As the only bank in the Peabody deal, Goldman “doesn’t look like it’s running out of coal,” Kirsch said.

Since 2019, other banks have gone further by limiting deals with coal companies. In December, HSBC He said he would remove the thermal coal financing in the countries of the EU and OECD by 2030. “Global carbon removal would end by 2040”, published by HSBC.

For Goldman, “the main issue here is how vague the coal policy is,” he said. Yann Louvel, Principal Policy Analyst at Reclaim Financea non-profit group affiliated with Friends of the earth. “The bank has wiggle room “open to internal bank interpretation, which makes it difficult to prove a clear breach of policy.”

Peabody said that the coal derivatives contracts that were used in 2021 were affected by the rising carbon prices and that the company was affected by a $534 million margin call, which uses the need for the Goldman loan. Shares in Peabody, which owns stakes in 17 active coal mines in the US and AustraliaThey are up 500% from the previous year.

Global banks have come under increasing scrutiny for their business deals with fossil fuel companies, and shareholders have continued to ratchet up the pressure. Citi Group it last week lost a request in the Securities and Exchange Commission to block a shareholder proposal that required the bank to stop lending and underwriting new supplies of fossil fuels.

“A $150 million loan to a coal company that doesn’t violate Goldman’s supposedly ambitious climate policy should be all the proof we need that Wall Street banks can’t be left to their own devices to fix their climate problem. “, said Adele Shraiman, Campaign Representative for the Sierra Club’s Fossil-Free Finance Campaign.

Goldman Sachs Gr It closed the session on Monday at $324.98 and the last moving average cross, the 70-period below the 200-period, would give us a bearish signal. Meanwhile, the Ei indicators are mixed.

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