Is your bank funding climate change?
As the climate crisis accelerates, many of the world’s biggest banks – including several household names in the UK – continue to pour billions into fossil fuel projects, despite public commitments to reach net-zero emissions. If you’re trying to reduce your carbon footprint, your bank account could be undermining your efforts.
The truth is: your money might be funding climate change without you even knowing it.
Here, we reveal the worst banks for fossil fuel financing – and recommend ethical alternatives that support a sustainable, fossil-free future.
1. JP Morgan Chase
JP Morgan Chase is the world’s largest funder of fossil fuels. Between 2016 and 2023, the US-based banking giant poured over $430 billion (£317 billion) into the oil and gas industry. It was also the first bank to fund oil and gas extraction in the Amazon rainforest.
In 2021, JP Morgan Chase launched a UK-based digital bank – Chase. Chase was crowned “Best British Bank” at the British Bank Awards in 2023 and 2024, despite its parent company’s poor ethical record.
Ethical Consumer has given the Chase current account a “red” rating – the worst possible – due to its devastating environmental impact. JP Morgan Chase also owns the investment platform Nutmeg, raising further concerns for eco-conscious consumers.
2. Barclays
Barclays continues to hold the title of the UK and Europe’s largest fossil fuel financier. Since the Paris Agreement was signed in 2016, Barclays has invested over $235.2 billion (£173 billion) into coal, oil, and gas projects. The bank has been especially active in environmentally sensitive areas, including the Arctic, where it provided $132 billion (£105 billion) for drilling projects between 2015 and 2020.
Despite shareholder pressure, Barclays has made only limited policy changes, including a vague commitment to reduce its involvement in tar sands. While it has pledged to stop financing new or expanded coal mines and plants directly, this does not cover all coal-related financing. Critics, including Banking on Climate Chaos, say the bank’s current policies fall far short of what’s needed to align with the Paris climate targets.
3. HSBC and First Direct
HSBC has also been a major global funder of fossil fuels, investing $192.2 billion (£141.5 billion) between 2016 and 2023. Its past projects include significant contributions to oil and gas extraction in Argentina’s Vaca Muerta region. In 2023, under pressure from investors and environmental groups, HSBC announced it would no longer provide financing for new oil and gas fields. While this marked progress, critics argue that its policy does not go far enough.
Banking on Climate Chaos notes that HSBC’s exclusions only apply to some fossil fuel projects and not to companies as a whole – leaving the door open to continued funding of the industry.
Top 5 ethical current accounts
4. Santander
Santander invested $78.9 billion (£58 billion) into the fossil fuel sector between 2016 and 2023. Although it has made some minor updates to its oil and gas policy – such as excluding certain upstream oil projects – the bank continues to finance major parts of the oil and gas value chain.
In addition, Santander has been linked to mining operations that impact Indigenous lands in the Amazon. According to Amazon Watch, the bank provided hundreds of millions in underwriting and investments to mining companies operating in these sensitive areas, raising serious concerns about its environmental and social impacts.
5. Natwest/ Royal Bank of Scotland
NatWest Group, which includes Royal Bank of Scotland, invested $27.4 billion (£20.2 billion) into fossil fuels between 2016 and 2023. In 2024, however, it pledged to stop financing new clients involved in fossil fuel projects and committed to phasing out support for existing ones by the end of 2025. These moves mark a positive step, but campaigners will be watching closely to ensure the bank follows through with clear action.
6. Lloyds Bank
Between 2016 and 2023, Lloyds Bank invested $21.6 billion (£17.1 billion) in fossil fuels. In October 2022, Lloyds announced it would stop financing fossil fuel “projects.” However, this only applies to specific projects – not entire fossil fuel companies. This means that while the bank may no longer fund individual oil rigs, it can still support the companies that build and operate them. In December 2024, the UK’s advertising regulator banned an advert by Lloyds Bank about its “low carbon” policies for being misleading.
Although Lloyds has expressed a commitment to helping clients develop transition plans, critics argue that without more stringent exclusions, its current policies are largely symbolic.
The UK’s most ethical banks and building societies
Where to put your money for climate impact
A handful of banks have fully committed to ensure that your money won’t go to oil, gas or coal.
The gold standard in ethical banking is Triodos Bank, which goes further than simply avoiding the bad stuff – it only invests your money to make a positive impact on the planet and society.
For ethical current accounts, we also like Nationwide Building Society and The Co-operative Bank as well as digital challengers such as Starling Bank. A recent report by Which? named The Co-operative Bank and Triodos as their Eco Providers. It found they have no exposure to fossil fuels in their banking activities.
For ethical savings accounts, we like the above as well as Charity Bank, Coventry Building Society, Ecology Building Society, Gatehouse Bank and Tandem Bank.
