Identification of Fossil & Nuclear
Free Financial Institutions in Japan
Description of the methodology
Ward Warmerdam, Léa Pham Van
16 December 2021

Introduction
The objective of this research project was to identify Japanese financial institutions with no recordof financing provided to companies engaged in fossil fuels, or nuclear power generation.
Additionally, it also identified which financial institutions have provided financing to companies
engaged in renewable energy. This note describes the methodology which was used for this casestudy.

1 Research questions
The following research questions were answered in this case study:
1. Which financial institutions have provided credit (loans and underwriting services) tothe selected companies?
Disaggregated by the four categories: coal, oil & gas, companies engaged in nuclear
energy and renewable energy companies.
2. Which financial institutions hold bonds and/or shares of the selected companies?
Disaggregated by the four categories: coal, oil & gas, companies engaged in nuclear
energy and renewable energy companies.
3. What proportion of the selected companies’ activities are related to the four
categories: coal, oil & gas, nuclear energy and renewable energy?

2 Scope of the research
2.1

Financial institutions

The research focused on Japanese financial institutions, including life insurance companies andbanks.
The largest life insurance companies in Japan on basis of total assets were selected:
•
•
•
•
•

Japan Post Life Insurance
Nippon Life
Dai-ichi Holdings
Meiji Yasuda Life
Sumitomo LifeThe banks were chosen to create a representative spread of banks. In addition to the large banks,
smaller banks were chosen based on their branch numbers in underrepresented areas of Japan,
as listed in Table 1.

Page | 1

Table 1

Banks and insurers selected for the researchParent company

Subsidiary

77 Bank

77 Bank

Aeon Bank

Aeon Bank

Aichi Bank

Aichi Bank

Akita Bank

Akita Bank

Akita Shinkin Bank

Akita Shinkin Bank

Amagasaki Shinkin Bank

Amagasaki Shinkin Bank

Aoi Mori Shinkin Bank

Aoi Mori Shinkin Bank

Aomori Bank

Aomori Bank

Aozora Bank

Aozora Bank

Asahikawa Shinkin Bank

Asahikawa Shinkin Bank

Ashikaga Bank

Ashikaga Bank

Au Jibun Bank

Au Jibun Bank

Awa Bank

Awa Bank

Bank of Iwate

Bank of Iwate

Bank of Kochi

Bank of Kochi

Bank of Kyoto

Bank of Kyoto

Bank of Nagoya

Bank of Nagoya

Bank of Okinawa

Bank of Okinawa

Bank of SagaBank of SagaBank of The Ryukyus

Bank of The Ryukyus

Bank of Yokohama

Bank of Yokohama

Chiba Bank

Chiba Bank

Chikuho Bank

Chikuho Bank

Chugoku Bank

Chugin Securities
Chugoku Bank

Chugoku Labour Bank

Chugoku Labour Bank

Chukyo Bank

Chukyo Bank

Chuo Labour Bank

Chuo Labour Bank

Daishi Hokuetsu Financial Group Daishi Hokuetsu Bank
Daishi Hokuetsu Securities
Daito Bank

Daito Bank

Daiwa Securities

Daiwa Asset Management
Daiwa Capital Markets
Daiwa Next Bank
Daiwa Securities

Ehime Bank

Ehime BankFIDEA Holdings

Hokuto Bank
Shonai Bank

Page | 2

Parent company

SubsidiaryFirst Bank of Toyama

First Bank of Toyama

Fukoku Mutual Life Insurance

Fukoku Mutual Life Insurance

Fukuho Bank

Fukuho Bank

Fukui Bank

Fukui Bank

Fukuoka Chuo Bank

Fukuoka Chuo Bank

Fukuoka Financial GroupBank of Fukuoka
FFG Securities
Kumamoto Bank
Juhachi-Shinwa Bank

Fukushima Bank

Fukushima Bank

Gunma Bank

Gunma Bank

Hachijuni Bank

Hachijuni Bank

Higashi Nippon Bank

Higashi Nippon Bank

Hirogin Holdings

Hiroshima Bank

Hokkaido Labour Bank

Hokkaido Labour Bank

Hokkoku Bank

Hokkoku Bank

Hokuhoku Financial Group

Hokkaido Bank
Hokuriku Bank

Hokuriku Labour Bank

Hokuriku Labour Bank

Howa Bank

Howa Bank

Hyakugo Bank

Hyakugo Bank

Hyakujushi Bank

Hyakujushi Bank

Iyo Bank

Iyo Bank

Japan Post BankJapan Post BankJapan Post Life Insurance

Jimoto Holdings

Kirayaka Bank
Sendai Bank

Johnan Shinkin Bank

Johnan Shinkin Bank

Joyo Bank

Joyo Bank

Juroku Bank

Juroku Bank

Kanagawa Bank

Kanagawa Bank

Keiyo Bank

Keiyo Bank

Kinki Labour Bank

Kinki Labour Bank

Kiraboshi Bank

Kiraboshi Bank

Kita-Nippon Bank

Kita-Nippon Bank

Kiyo Financial GroupKiyo Bank

Koza Shinkin Bank

Koza Shinkin Bank

Kyoto Chuo Shinkin Bank

Kyoto Chuo Shinkin Bank

Kyoto Shinkin Bank

Kyoto Shinkin Bank

Page | 3

Parent company

Subsidiary

Kyushu Financial Group

Higo Bank
Kagoshima Bank

Kyushu Labour Bank

Kyushu Labour Bank

Meiji Yasuda Life Insurance

Meiji Yasuda Life InsuranceMichinoku Bank

Michinoku Bank

Minami Nippon Bank

Minami Nippon Bank

Minato Bank

Minato Bank

Mitsubishi UFJ Financial

Bank of Tokyo Mitsubishi UFJ
Mitsubishi Trust & Banking
Mitsubishi UFJ Asset Management
Mitsubishi UFJ Morgan Stanley
MU Investments
MUFG Union Bank
Nippon Yusen

Miyazaki Bank

Miyazaki Bank

Miyazaki Taiyo Bank

Miyazaki Taiyo Bank

Mizuho Financial

Asset Management One
Chiba Kogyo Bank
Mizuho Bank
Mizuho Financial
Mizuho International
Mizuho Securities

MS&AD Insurance Group

Mitsui Sumitomo Insurance
Mitsui Sumitomo Marine Management
MS&AD Insurance Group

Musashino Bank

Musashino Bank

Nagano Labour Bank

Nagano Labour Bank

Naganobank

Naganobank

Nanto Bank

Nanto Bank

Niigata Labour Bank

Niigata Labour Bank

Nippon Life Insurance

Nippon Life Insurance
Nissay Asset Management

Nishi-Nippon Financial Holdings

Bank of Nagasaki
Nishi-Nippon City Bank

NomuraNomura Asset Management
Nomura International
Nomura Securities
Nomura Trust & Banking

Norinchukin Bank

Norinchukin Bank

Page | 4

Parent company

Subsidiary
Norinchukin Zenkyoren Asset Management

North Pacific Bank

North Pacific Bank

Ogaki Kyoritsu Bank

Ogaki Kyoritsu Bank

Oita Bank

Oita Bank

Okayama Shinkin Bank

Okayama Shinkin Bank

Okinawa Kaiho Bank

Okinawa Kaiho Bank

Okinawa Labour Bank

Okinawa Labour Bank

Orix Corporation

Boston Partners
Orix Corporation
RobecoOsaka City Shinkin Bank

Osaka City Shinkin Bank

Osaka Shinkin Bank

Osaka Shinkin Bank

PayPay Bank Corporation

PayPay Bank Corporation

RakutenRakuten Bank

Resona Holdings

Resona Bank
Resona Holdings
Saitama Resona Bank

Saga Kyoei Bank

Saga Kyoei Bank

Saikyo Bank

Saikyo Bank

San-in Godo Bank

San-in Godo Bank

Sapporo Shinkin Bank

Sapporo Shinkin BankSan Ju San Financial GroupSan Ju San Bank

SBI Holdings

SBI Holdings
SBI Sumishin Net Bank

Seibu Shinkin Bank

Seibu Shinkin Bank

Senshu Ikeda Holdings

Senshu Ikeda Bank

Seven & I Holdings

Seven Bank

Shiga Bank

Shiga Bank

Shikoku Bank

Shikoku Bank

Shikoku Labour Bank

Shikoku Labour Bank

Shimane Bank

Shimane Bank

Shimane Chuo Shinkin Bank

Shimane Chuo Shinkin Bank

Shimizu Bank

Shimizu Bank

Shinkin Central Bank

Shinkin Asset Management
Shinkin Central Bank
Shinkin International
Shinkin Securities

Shinsei Bank

Shinsei Bank

Shizuoka Bank

Shizuoka Bank

Page | 5

Parent company

Subsidiary

Shizuoka Chuo Bank

Shizuoka Chuo Bank

Shizuoka Labour Bank

Shizuoka Labour Bank

Sompo Holdings

Sompo Asset Management
Sompo Holdings
Sompo Japan InsuranceSony Financial GroupSony Bank

Sumitomo Life

Sumitomo Life

Sumitomo Mitsui Financial

Kansai Urban Banking
Mitsui Sumitomo BankSMBC Friend Securities
SMBC Nikko Capital Markets
SMBC Nikko Securities
SMBC Trust Bank
Sumitomo Mitsui Asset Management
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui DS Asset Management

Sumitomo Mitsui Trust Holdings

Nikko Asset Management
Sumitomo Mitsui Trust Asset Management
Sumitomo Mitsui Trust Bank

Suruga Bank

Suruga Bank

T&D Holdings

T&D Asset Management
T&D Holdings
Taiyo Life

Taiko Bank

Taiko Bank

Tajima Bank

Tajima BankTama Shinkin BankTama Shinkin BankThe Dai-Ichi Life Holdings

The Dai-Ichi Life Insurance Company

Tochigi Bank

Tochigi Bank

Toho Bank

Toho Bank

Tohoku Bank

Tohoku Bank

Tohoku Labour Bank

Tohoku Labour Bank

Tokai Labour Bank

Tokai Labour Bank

Tokio Marine Holdings

Tokio Marine Holdings

Tokyo Star BankTokyo Star Bank

Tomato Bank

Tomato Bank

Tomony Holdings

Kagawa Bank
Taisho Bank
Tokushima Bank
Tomony Holdings

Page | 6

Parent company

Subsidiary

Tottori Bank

Tottori Bank

Tottori Shinkin Bank

Tottori Shinkin Bank

Towa Bank

Towa Bank

Toyokawa Shinkin Bank

Toyokawa Shinkin Bank

Tsukuba Bank

Tsukuba Bank

Yamagata Bank

Yamagata Bank

Yamaguchi Financial Group

Kitakyushu Bank
Momiji Bank
Yamaguchi Bank

2.2

Yamanashi Chuo Bank

Yamanashi Chuo Bank

Yonago Shinkin Bank

Yonago Shinkin Bank

Companies

Financing to companies on the Global Coal Exit List (GCEL) representing 75% of global production
were researched, as well as oil & gas companies accounting for 75% of global production, thelargest oil field service companies, pipeline companies, and companies engaged in renewableenergy equipment production (e.g. wind turbines, solar PVs). Additionally, the study researched all
financing to Japanese electric utility companies. The selected companies are listed in Table 2.
Table 2Companies selected for the research

SectorCompanyCountry

Geothermal energy utilization equipment

Atlas Copco

SwedenGeothermal energy utilization equipment

ExergyItaly

Geothermal energy utilization equipment

Fuji Electric

Japan

Geothermal energy utilization equipment

GE/Alstom

Geothermal energy utilization equipment

Mitsubishi

Japan

Geothermal energy utilization equipment

Ormat

United States

Geothermal energy utilization equipment

ToshibaJapan

Geothermal energy utilization equipment

Turboden (subsidiary of Mitsubishi)

Italy

Hydrogen

Ballard Power Systems

CanadaHydrogenBloom Energy

United States

Hydrogen

Ceres Power

United Kingdom

Hydrogen

ITM Power

United Kingdom

Hydrogen

Nel

NorwayHydrogen

Plug Power

United States

Coal mining

ABM Investama

Indonesia

Coal mining

Adani Group

India

Coal mining

Adaro Energy

Indonesia

Coal mining

Africa Coal Partners Ltd

South Africa

Coal mining

AGL Energy Ltd

Australia

Coal mining

Alliance Resource Partners LP

USA

Page | 7

SectorCompanyCountry

Coal mining

ALLTECH Group

RussiaCoal mining

Altraso Ventures Ltd

RussiaCoal mining

Aluminum Corporation of China Ltd

China

Coal mining

Anglo American PLC

United Kingdom

Coal mining

Anglo Pacific Group PLC

United Kingdom

Coal mining

Anhui Wanbei Coal - Electricity Group
Co LtdChina

Coal mining

Arch Resources Inc

USA

Coal mining

ARM Coal Pty Ltd

South Africa

Coal mining

Banpu Public Company Ltd

ThailandCoal mining

Baramulti Suksessarana

Indonesia

Coal mining

Batchfire Resources Pty Ltd

Australia

Coal mining

Bayan Resources

Indonesia

Coal mining

Beijing Energy Holding Co Ltd

China

Coal mining

BHP Group Ltd

Australia

Coal mining

Bin County Coal Co Ltd

China

Coal mining

Blackhawk Mining LLC

USA

Coal mining

Bukit Asam

Indonesia

Coal mining

Bulgarian Energy Holding (BEH)

Bulgaria

Coal mining

Bumi Resources

Indonesia

Coal mining

CC Kolmar LLC

RussiaCoal mining

Celikler Holding

TurkeyCoal mining

CEZ AS

Czech Republic

Coal mining

China Energy Investment Corporation(China Energy/ CHN Energy)

China

Coal mining

China Huadian Co Ltd

China

Coal mining

China Huaneng Group Co Ltd

China

Coal mining

China National Coal Group Corp (ChinaCoal)

China

Coal mining

China Petrochemical Group (Sinopec
Group)

China

Coal mining

China Pingmei Shenma Group

China

Coal mining

China Qinfa Group Ltd

China

Coal mining

Coal India Ltd

India

Coal mining

Complexul Energetic Oltenia SA

Romania

Coal mining

CONSOL Energy Inc

USA

Coal mining

Contura Energy Inc

USA

Coal mining

Datong Coal Mine Group Co Ltd

China

Coal mining

DMCI Holdings Inc

Philippines

Coal mining

Drummond Company Inc

USA

Coal mining

DTEK BV Group

UkrainePage | 8

SectorCompanyCountry

Coal mining

Electricity Generating Authority of Thai- Thailand
land (EGAT)

Coal mining

Elektrik Uretim A.S. Genel Mudurlugu(EUAS)

TurkeyCoal mining

Elektroprivreda Srbije (EPS)

SerbiaCoal mining

EN+ Group IPJSC

RussiaCoal mining

Enea SA

PolandCoal mining

Energeticky a prumyslovy holding a.s.
(EPH)

Czech Republic

Coal mining

Enerjisa Uretim Santralleri A.S.

TurkeyCoal mining

EP Investment II S.à.r.l.

Luxembourg

Coal mining

EP Investment S.à.r.l.

Luxembourg

Coal mining

Erdenes Mongol LLC

Mongolia

Coal mining

Essel Mining & Industries Ltd (EMIL)

India

Coal mining

Eurasian Resources Group S.à.r.l(ERG)

Luxembourg

Coal mining

Exxaro Resources Ltd

South Africa

Coal mining

Famur SA

PolandCoal mining

FM Coal LLC

USA

Coal mining

Foresight Energy LP

USA

Coal mining

Geo Energy Resources Ltd

Singapore

Coal mining

Glencore PLC

Switzerland

Coal mining

Global Mining Holding Company LLC

USA

Coal mining

GMR Infrastructure Ltd

India

Coal mining

Guangdong Energy Group Co Ltd

China

Coal mining

Guanghui Energy Co Ltd

China

Coal mining

Guizhou Panjiang Coal And Electricity
Group Co Ltd

China

Coal mining

Guizhou Panjiang Investment Holding(Group) Co Ltd

China

Coal mining

Guizhou Panjiang Refined Coal Co Ltd China

Coal mining

Gujarat Mineral Development Corp Ltd India

Coal mining

Hallador Energy Co

USA

Coal mining

Heilongjiang Longmay Mining Holding
Group Co Ltd

China

Coal mining

Henan Energy and Chemical Industry
Group Co Ltd

China

Coal mining

Henan Shenhuo Group Co Ltd

China

Coal mining

Hindalco Industries Ltd

India

Coal mining

Huaibei Mining Group Company

China

Coal mining

Huaihe Energy Holding Group Co Ltd

China

Coal mining

Hubei Yihua Group Co Ltd

China

Page | 9

SectorCompanyCountry

Coal mining

Idemitsu Kosan Co Ltd

Japan

Coal mining

Indika Energy

Indonesia

Coal mining

Indonesia Asahan Aluminium LLP

Indonesia

Coal mining

Inner Mongolia Energy Generation &Investment Group

China

Coal mining

Inner Mongolia Huineng Coal andElectricity Group Co Ltd

China

Coal mining

Inner Mongolia Manshi Investment
Group Co Ltd

China

Coal mining

Inner Mongolia Yitai Group Co Ltd

China

Coal mining

Jiangsu Yueda Group Co Ltd

China

Coal mining

Jindal Steel & Power Ltd (JSPL)

India

Coal mining

Jingyuan Coal Industry Group

China

Coal mining

Jinneng Group Co Ltd

China

Coal mining

Jizhong Energy Group Co Ltd

China

Coal mining

JSC HC SDS

RussiaCoal mining

JSC SUEK Group (Siberian Coal Energy Company)

RussiaCoal mining

Kailuan (Group) Ltd Liability Corporation

China

Coal mining

Karazhyra JSC

Kazakhstan

Coal mining

Kiewit Peter Sons' Inc

USA

Coal mining

Kosovo Energy Corporation J. S. C.
(KEK)KosovoCoal mining

LG International Corp

South Korea

Coal mining

Liaoning Energy Industry Holding
Group Co Ltd

China

Coal mining

Menar Holding

Luxembourg

Coal mining

Minera del Norte S.A. de C.V.
(MINOSA)

MexicoCoal mining

Mongolian Mining Corporation

Mongolia

Coal mining

Murray Energy Corp

USA

Coal mining

NACCO Industries Inc

USA

Coal mining

Navajo Transitional Energy Company
LLC (NTEC)

USA

Coal mining

New Hope Corporation Ltd

Australia

Coal mining

NLC India Ltd

India

Coal mining

NTPC Ltd

India

Coal mining

OAO Kuzbasskaya Toplivnaya Kompaniya (KTK)

RussiaCoal mining

Ordos Wulan Coal (Group) Co Ltd

China

Coal mining

Peabody Energy Corp

USA

Page | 10

SectorCompanyCountry

Coal mining

PGE SA (Polska Grupa Energetyczna
SA)

PolandCoal mining

Polska Grupa Górnicza (PGG)

PolandCoal mining

Posco

South Korea

Coal mining

PTT Global Management Co. Ltd(PTTGM)

ThailandCoal mining

Public Power Corporation SA (PPC)

GreeceCoal mining

Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUNL)

India

Coal mining

Reliance Power Ltd

India

Coal mining

Russian Coal Co

RussiaCoal mining

RWE AG

Germany

Coal mining

Samruk Energy JSC

Kazakhstan

Coal mining

Sasol LtdSouth Africa

Coal mining

Seriti Resources Holdings Pty Ltd

South Africa

Coal mining

Sev.en Energy Group

Czech Republic

Coal mining

Shaanxi Coal and Chemical Industry
Group Co Ltd

China

Coal mining

Shaanxi Investment Group Co Ltd

China

Coal mining

Shaanxi Yulin Energy Group Co Ltd

China

Coal mining

Shandong Energy Group Co Ltd

China

Coal mining

Shanxi Coal Import & Export Group Co China
Ltd

Coal mining

Shanxi Coking Coal Group Co Ltd

China

Coal mining

Shanxi Jincheng Anthracite Mining
Group Co Ltd

China

Coal mining

Shanxi Lanhua Coal Industry Group
Co LtdChina

Coal mining

Shanxi Lu'an Mining Industry (Group)
Co LtdChina

Coal mining

Shanxi Luxin Energysources Group

China

Coal mining

Shanxi Xinzhou Shenda Energy Group China
Co LtdCoal mining

Shenyang Coal Industry (Group) Co
Ltd

China

Coal mining

Shenyang Coal Trade Group Corp Ltd

China

Coal mining

Sichuan Coal Industry Group LLC

China

Coal mining

Sinar Mas

Indonesia

Coal mining

Singareni Collieries Company Ltd(SCCL)

India

Coal mining

Sokolovská Uhelná AS

Czech Republic

Coal mining

South32 Ltd

Australia

Page | 11SectorCompanyCountry

Coal mining

State Power Investment Corporation(SPIC)

China

Coal mining

Tata Power Co Ltd

India

Coal mining

TerraCom Ltd

Australia

Coal mining

TransAlta Corp

CanadaCoal mining

Turkish Coal Enterprises (TKİ)

TurkeyCoal mining

United Tractors

Indonesia

Coal mining

Ural Mining Metallurgical Company(UMMC)

RussiaCoal mining

Vietnam National Coal Mineral Industries Holding Corporation Ltd (Vinacomin)

VietnamCoal mining

Vistra Corp

USA

Coal mining

Westmoreland Mining Holdings LLC

USA

Coal mining

Whitehaven Coal Ltd

Australia

Coal mining

Wintime Holding Group Ltd

China

Coal mining

Wolverine Fuels LLC

USA

Coal mining

Xuzhou Mining Group Co Ltd

China

Coal mining

Yangquan Coal Industry (Group) Co
Ltd

China

Coal mining

Yankuang Group Co Ltd

China

Coal mining

Yunnan Coal Chemical Industry Group China
Co LtdCoal mining

Yunnan Xiaolongtan Mining Bureau

China

Coal mining

ZAO Stroyservis

RussiaCoal mining

ZE PAK SA Group (Zespół ElektrowniPątnów Adamów Konin SA)

PolandCoal mining

Zhengzhou Coal Industry Group Co
Ltd

China

Ocean energy

BioTherm Energy

South Africa

Ocean energy

Blue Energy Canada

CanadaOcean energy

MinestoSwedenOcean energy

Nova Innovation

United Kingdom

Ocean energy

Ocean Renewable Power

United States

Ocean energy

SabellaFranceOcean energy

SIMEC Atlantis (formerly Atlantis Resources Corporation)

Scotland

Ocean energy

Sowitec

Germany

Ocean energy

TocardoNetherlands

Oil & Gas

Abu Dhabi National Oil Company(ADNOC)

UAE

Oil & Gas

Antero Resources CorporationUSA

Oil & Gas

APA Corporation

USA

Page | 12

SectorCompanyCountry

Oil & Gas

Ascent Resources LLC

USA

Oil & Gas

Basra Oil Company

Iraq

Oil & Gas

BP plcUK

Oil & Gas

Cabot Oil & Gas CorporationUSA

Oil & Gas

Canadian Natural Resources Ltd(CNRL)

CanadaOil & Gas

Cenovus Energy Inc

CanadaOil & Gas

Chesapeake Energy CorporationUSA

Oil & Gas

Chevron CorporationUSA

Oil & Gas

China National Offshore Oil Corporation (CNOOC)

China

Oil & Gas

China National Petroleum Corporation(CNPC)

China

Oil & Gas

China Petrochemical Corporation (Sinopec Group)

China

Oil & Gas

China Petroleum & Chemical Corpora- China
tion (Sinopec Corp)

Oil & Gas

Concho Resources Inc

USA

Oil & Gas

ConocoPhillips

USA

Oil & Gas

Continental Resources Inc

USA

Oil & Gas

Devon Energy CorporationUSA

Oil & Gas

Diamondback Energy Inc

USA

Oil & Gas

Ecopetrol SA

Colombia

Oil & Gas

Eni SpA

Italy

Oil & Gas

EOG Resources Inc

USA

Oil & Gas

EQT CorporationUSA

Oil & Gas

Equinor ASA

NorwayOil & Gas

Exxon Mobil CorporationUSA

Oil & Gas

Gazprom

RussiaOil & Gas

Hess CorporationUSA

Oil & Gas

Inpex CorporationJapan

Oil & Gas

JSC Uzbekneftegaz

Uzbekistan

Oil & Gas

Kuwait Petroleum Corporation (KPC)

KuwaitOil & Gas

LukoilRussiaOil & Gas

Mamoura Diversified Global Holding
PJSC

UAE

Oil & Gas

Marathon Oil CorporationUSA

Oil & Gas

National Iranian Oil Company (NIOC)

Iran

Oil & Gas

Nigerian National Petroleum Corporation (NNPC)

Nigeria

Oil & Gas

North Oil Company (Iraq)

Iraq

Oil & Gas

Occidental Petroleum Corporation

USA

Page | 13

SectorCompanyCountry

Oil & Gas

Oil and Natural Gas Corporation Ltd(ONGC)India

Oil & GasOMV AG

Austria

Oil & GasOQ SAOC

Oman

Oil & Gas

Ovintiv Inc

USA

Oil & Gas

PAO NOVATEK

RussiaOil & Gas

Pertamina (Persero)

Indonesia

Oil & Gas

Petoro AS

NorwayOil & Gas

PetroAmazonas EP

EcuadorOil & Gas

PetroChina Company Ltd

China

Oil & Gas

Petroleo Brasileiro SA – Petrobras

Brazil

Oil & Gas

Petroleos de Venezuela SA (PDVSA)

Venezuela

Oil & Gas

Petroleos Mexicanos (PEMEX)

MexicoOil & Gas

Petroliam Nasional Berhad (Petronas)

Malaysia

Oil & Gas

Pioneer Natural Resources Company

USA

Oil & Gas

PTT Exploration and Production Public Thailand
Company Ltd (PTTEP)

Oil & Gas

Qatar Petroleum

Qatar

Oil & Gas

Range Resources CorporationUSA

Oil & Gas

Repsol SA

Spain

Oil & Gas

Rosneft Oil Company

RussiaOil & Gas

Royal Dutch Shell plc

Netherlands

Oil & Gas

Saudi Arabian Oil Company (Saudi Ar- Saudi Arabia
amco)

Oil & Gas

Sonatrach SpA

Algeria

Oil & Gas

Southwestern Energy Company

USA

Oil & Gas

State Oil Company of the Azerbaijan
Republic (SOCAR)

Azerbaijan

Oil & Gas

Suncor Energy Inc

CanadaOil & Gas

Surgutneftegas PJSC

RussiaOil & Gas

Tatneft

RussiaOil & Gas

Total SEFranceOil & Gas

Turkmengaz State Concern

Turkmenistan

Oil & Gas

Wintershall Dea GmbHGermany

Oil & GasYPF SA

Argentinia

Oil Field Service

Baker Hughes

Oil Field Service

Halliburton

Oil Field Service

Helmerich & Payne

Oil Field Service

Patterson-UTI Energy

Oil Field Service

Schlumberger

Oil Field Service

Transocean

United States

Page | 14

SectorCompanyCountry

Pipelines

Bangladesh Petroleum

Bangladesh

Pipelines

Canada Development Investment Cor- Canada
poration

Pipelines

China National Petroleum Corporation

China

Pipelines

Eagle Spirit Energy Holdings

CanadaPipelines

Enbridge

CanadaPipelines

Energy Transfer

Pipelines

Enterprise Products Partners

Pipelines

Gazprom

RussiaPipelines

Gaz-System

PolandPipelines

Gujarat State Petronet

Pipelines

Indian Oil Corporation

India

Pipelines

JemenaChina

Pipelines

Kinder Morgan

United States

Pipelines

Magellan Midstream Partners

United States

Pipelines

Moroccan National Board of Hydrocar- Moroccobons and Mines

Pipelines

MPLX

Pipelines

Nigerian National Petroleum Corporation

Nigeria

Pipelines

Oil and Natural Gas Corporation

India

Pipelines

ONEOK

United States

Pipelines

Pembina Pipeline

CanadaPipelines

Petrobras

BrazilPipelines

Phillips 66

United States

Pipelines

PipeChina

China

Pipelines

Plains All American Pipeline

United States

Pipelines

Sinopec

China

Pipelines

Sonatrach

Algeria

Pipelines

Tallgrass Energy

United States

Pipelines

TC Energy

CanadaPipelines

Total

FrancePipelines

TransgazRomania

Pipelines

Transnet

South Africa

Pipelines

Turkmengaz

Turkmenistan

Pipelines

Williams Companies

United States

Power generation

Chubu Electric PowerJapan

Power generation

Chugoku Electric Power Company

Japan

Power generation

Hokkaido Electric Power Company

Japan

Power generation

Hokuriku Electric Power Company

Japan

Page | 15

SectorCompanyCountry

Power generation

JERA

Japan

Power generation

Kansai Electric Power Company

Japan

Power generation

Kyushu Electric PowerJapan

Power generation

Okinawa Electric Power Company

Japan

Power generation

Shikoku Electric PowerJapan

Power generation

Tohoku Electric PowerJapan

Power generation

Tokyo Electric Power Company

Japan

Solar Panel CSP

Abengoa

Spain

Solar Panel CSP

Acciona

Spain

Solar Panel CSP

Brightsource

IsraelSolar Panel CSP

China Shipbuilding New Power Company

China

Solar Panel CSP

General Electric

United States

Solar Panel CSP

Sener

Spain

Solar Panel CSP

Shanghai Electric

China

Solar Panel PV

Aiko Solar

China

Solar Panel PV

Canadian Solar

Canada/China

Solar Panel PV

First Solar

United States

Solar Panel PV

Hanwha Q-Cells

Republic of Korea

Solar Panel PV

JA Solar

China

Solar Panel PV

Jinko Solar

China

Solar Panel PV

LONGi

China

Solar Panel PV

Tongwei

China

Solar Panel PV

Trina Solar

China (or US acc to
Mints))

Solar Panel PV

UREC

TaiwanSolar Panel PV

KyoceraJapan

Solar Panel PV

Sharp

Japan

Wind Turbines

Dongfang

China

Wind Turbines

EnerconGermanyWind Turbines

Envision

China

Wind Turbines

GE Renewable Energy

United States

Wind Turbines

Goldwind

China

Wind Turbines

Ming Yang

China

Wind Turbines

Nordex-Acciona

GermanyWind Turbines

Siemens Gamesa

Spain

Wind Turbines

VestasDenmark

Wind Turbines

WindeyChina

Page | 16

3 Coal, oil & gas, nuclear and renewable energy in the portfolios
The research analysed the financing and investment amounts flowing from the financial institutions
to coal, oil & gas, nuclear energy and renewable energy in the past five years (January 2016 –June 2021). This analysis assessed which percentage of the energy financings and investments bybanks and insurance companies is funding each type of energy.

3.1

Classification of energy sources

As a first step, this section provides an overview of the approach behind the selection of theenergy sources compared in this study. Section 3.1.1 explains which energy sources are selected
for this study as they are considered either as coal, oil & gas, nuclear or renewable energy.
Section 3.1.2 details which energy sources are seen as Other energy sources, which means thatloans to, and investments in, companies active in producing or converting these energy sources
are not taken into account in this research project.
3.1.1

Selected energy sources

According to the United Nations Framework Convention on Climate Change (UNFCCC), in 2016
81% of all GHG emissions (excluding land-use, land use change and forestry, LULUCF) 1 were
attributable to the use of energy. Within this sector, 36% of GHG emissions originated from power
generation, 26% from transport, 14% from manufacturing industries and construction, 12% fromother sectors, 10% from fugitive emissions from the production of fuels and 2% from other sources
not specified.2
As of 2016, electricity and heat generation accounted for 36% of total GHG emissions in theenergy sector, and 29% of total GHG emissions (excluding LULUCF) for countries party to the
UNFCCC. As such, power generation constitutes the core sector of this research. This study
further focuses on sectors that can be considered as inputs for power generation and/or for energy
used in transport, manufacturing industries and construction, and fugitive emissions from theproduction of fuels. Together these sectors are relevant for more than 60% of GHG emissions
attributable to energy use and 49% of total global GHG emissions.3
The following paragraphs further explain which sectors and energy sources were selected as coal,oil & gas, nuclear or renewable energy.
•

Electricity generation
Electricity can be generated through various sources. Not all sources of electricity generation
emit GHGs. Electricity generation sources include, but are not limited to, the following:
•
•
•
•
•
•
•
•
•
•

Biomass
Coal
Gas
Geothermal energy
Hydro electricity
Nuclear energy
Ocean energy
Oil
Solar
Wind

A growing number of electricity generation companies are diversifying the composition of theirgenerating capacities across different energy sources. This is stimulated by various factors,
such as the increasing awareness of climate change issues, the rapidly declining costs ofrenewable energy and other market dynamics, consumer and shareholder pressure andgovernment incentives and regulations.

Page | 17

From the sourcing of materials or fuels, to construction, to operation and waste management,
different electricity generation technologies emit different levels of GHG. When emissions of allthese processes are taken together, they are known as the life-cycle emissions of a certain
electricity generation technology. In the context of its fifth assessment report on climate change
mitigation, Working Group III of the IPCC assessed different electricity generation technologies
and developed an overview of the life-cycle emissions, as shown in Table 3. The GHG
emissions are expressed in grams of CO2-equivalent, comparing their climate change impact
per gram to that of CO2. The grams of CO2-equivalent emitted per kiloWatthour produced arethen calculated (gCO2eq/kWh).
There has been some debate regarding steps in the life-cycles of some technologies not being
included, and that technological advances that occurred while IPCC was conducting its study
have also not been included. Alternative evaluations of life-cycle emissions also exist.
However, the IPCC assessment is currently the most comprehensive. It is therefore the basis
for our assessment of different sectors and energy sources in this research project.
Table 3Life-cycle emissions of electricity generation technologies (gCO2eq/kWh)Current commercially available technology Minimum Median Maximum
Coal - pulverized coal

740

820

910

Gas - combined cycle

410

490

650

Biomass - co-firing

620

740

890

Biomass - dedicated

130

230

420

Geothermal

6

38

79

Hydropower

1

24

2,200

Nuclear

3.7

12

110

Concentrated Solar Power (CSP)

8.8

27

63

Solar PV – rooftop

26

41

60

Solar PV – large-scale projects

18

48

180

Wind onshore

7

11

56

Wind offshore

8

12

35

Source: Intergovernmental Panel on Climate Change (2015, February), Climate Change 2014: Mitigation of Climate Change.
Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change, New York:
Cambridge University Press, p. 1,335.

Table 4 provides an overview of the electricity generation technologies that this research
considers as Renewable Energy, because of median life-cycle emissions of below 50 grams of
CO2 equivalent per kilowatt hour, and which are considered as Fossil Fuels. It further provides
an overview of other electricity generation technologies, which are not included in either ofthese two categories (explained further in section 3.1.2).
Table 4

Classification of electricity generation technologies

Coal

Oil & Gas

NuclearCoal - pulverized coalGas - combined cycle Nuclear power

Renewable

Other

Geothermal

Biomass - co-firing

Concentrated solar Biomass - dedicatedpower (CSP)
Solar PV - rooftop

Hydropower

Solar PV - power
generation

Page | 18

Wind onshore
Wind offshore
Ocean and tidal
energy•Coal mining
Coal is used as an input for power generation, which accounts for 36% of all GHG emissions in
the energy sector, and 29% of total GHG emissions in 2016 for countries party to the
UNFCCC.4 Coal is also used as input for other industrial processes. The most significant otheruses of coal are in steel production, cement manufacturing and liquid fuel. As such its impact
on GHG emissions is far greater than simply as an input in power generation.
As Table 3 shows, coal used for electricity has a median life-cycle GHG emission of 820 gramsof CO2 equivalent per kilowatt hour. Coal mining can also have negative impact on theenvironment through damage to ecosystems, deforestation, and pollution. Additionally, coalmining can also have negative impacts on communities, including land grabs, loss of
livelihoods, and forced displacement.

•

Oil and gas production and refining
Oil and gas are used in both the transport and the power generation sectors. Together, these
sectors accounted for 62% of GHG emissions in the energy sector, and 51% of total GHG
emissions. 5 Oil and gas are also used as energy sources in many other sectors and as inputs
for other chemical processes.
As shown in Table 3, gas as an input for electricity generation has a median life-cycle GHG
emission of 490 grams of CO2 equivalent per kilowatt hour. While this is lower than coal, it isstill well above the threshold of this study of 50 grams of CO2 equivalent per kilowatt hour.
Furthermore, oil and gas extraction can have negative impacts on the environment throughdamage to ecosystems, deforestation, and pollution. Additionally, oil and gas extraction canalso have negative impacts on communities including land grabs, loss of livelihoods,
earthquakes, and forced displacement.
A report published at the end of 2020 by the United Nations Environmental Programme(UNEP), came to the conclusion that “to follow a 1.5°C-consistent pathway, the world will needto decrease fossil fuel production by roughly 6% per year between 2020 and 2030. (…) Global
coal, oil, and gas production would have to decline annually by 11%, 4%, and 3%, respectively,
to be consistent with a 1.5°C pathway.”.6•

Nuclear energy
Nuclear energy is seen by some as a sustainable source of energy because its energy
generation is seen as low-carbon. It produces relatively insignificant amounts of GHGs, iscomparatively cheap to run, and is a stable source of energy. However, many controversies
surround nuclear power.
Recent studies suggest that as uranium ore grades decrease, fossil fuel inputs in the nuclear
fuel cycle will increase. As such, within a few decades, the GHG emissions in the nuclear fuelcycle will be similar to that of traditional coal-fired or gas-fired power plants.
Further risks include the risks and environmental damage from uranium mining, processing andtransport, the risk of nuclear weapons proliferation, the unsolved problem of nuclear waste and,
although many countries have a good track record, the potential hazard of a serious accident.

Page | 19

As shown in Table 3, current estimations suggest that nuclear energy has a median life-cycle
GHG emission of 12 grams of CO2 equivalent per kilowatt hour. However, there are potential
negative impacts, and the consensus among FFG coalition partners that nuclear power is not a
viable alternative to traditional fossil fuels.
•

Solar energy
Solar energy is a renewable source of energy. Solar energy can be derived from solar
photovoltaic panels and from concentrating solar thermal energy. Different sources of solar
electricity have different levels of GHG emissions (see Table 3). Concentrated solar energy has
a median life-cycle GHG emission of 27 grams of CO2 equivalent per kilowatt hour. Large-scalesolar PV has a median life-cycle GHG emission of 48 grams of CO2 equivalent per kilowatt
hour. Rooftop solar PV has a median life-cycle GHG emission of 41 grams of CO2 equivalent
per kilowatt hour.
The mining of minerals needed to produced solar cells is regularly linked to human rights’
infringements and the process of manufacturing photovoltaic cells can include the use of toxic
chemicals. In addition, the production process is linked to potential issues identified generally inthe production of most electronic goods. Given that the assumption that the potential impact isless than the overall benefit produced, and that solar energy equipment manufacturing has low
life-cycle emissions, this sector is included in this study.

•

Wind energy
Wind energy is a renewable source of energy, but different sources of wind generated
electricity have different levels of GHG emissions (see Table 3). Onshore wind energy has amedian life-cycle GHG emission of 11 grams of CO2 equivalent per kilowatt hour. While
offshore wind energy has a median life-cycle GHG emission of 12 grams of CO2 equivalent perkilowatt hour.
A point of attention is that the mining of minerals needed to produced wind energy is regularly
linked to human rights’ infringements.

•

Geothermal energy
Geothermal energy is a renewable source of energy. As demonstrated in Table 3, geothermalenergy has a median life-cycle GHG emission of 38 grams of CO2 equivalent per kilowatt hour.

•

Ocean energy
Ocean energy is an emerging energy sector. Both tidal stream generators and barrage tidal
energy are methods to capture ocean energy. Tidal stream generators function similarly towind turbines as they capture the incoming and outgoing stream of energy from tides. Barrage
tidal energy is similar to hydroelectric dams, as structures are built across bays and estuaries
to force tidal energy through turbines situated in the barrage.
As with hydro power, the impact on the environment, particularly on natural ecosystems, ispotentially significant. Nevertheless, a review on studies on the life-cycle GHG emissions ofocean energy estimates that the median is around 17 grams of CO2 equivalent per kilowatt
hour (gCO2/kWh) and could be as low as 8 gCO2/kWh.7 Given these results and the technicalpotential of this energy source as an alternative source of energy, ocean energy has been
included in this study as Renewable Energy.

3.1.2

Other energy sectors

Apart from the coal, oil & gas, nuclear and renewable energy sources defined in section 3.1.1, twosources of energy are not taken in consideration in this research project: hydropower and bioenergy. These sources of energy are not considered viable alternatives to fossil fuels for energy
used in power generation and transport as they are considered to have a high impact on the

Page | 20

environment or because there is limited consensus on the impact level of these energy sources.
This section further discusses these two other energy sources and the rationale not to include
them in this research project.
•

Hydropower
Hydropower is often considered a sustainable source of energy, because it is thought to emit
less GHG than traditional fossil fuels. However, hydropower is often controversial. Hydropower
projects, both large and small, have a significant impact on the environment, altering habitats,as well as having a potentially great impact on communities and their socioeconomic
conditions. Communities are often displaced without (or with inadequate) compensation, andlivelihoods are lost. It is therefore not sustainable in the social and economic sense of the word,and does not respect human rights, in all contexts.
The GHG emissions caused by hydropower also vary widely and are sometimes even As Table
3 demonstrates, hydropower has a median life-cycle GHG emission of 24 grams of CO2
equivalent per kilowatt hour, which is quite low. However, hydropower also has a maximum lifecycle GHG emission of 2,200 grams of CO2 equivalent per kilowatt hour. This is more thandouble the maximum life-cycle GHG emission of pulverized coal. Such high levels of life-cycle
GHG emission per kilowatt hour are generally reached by large-scale hydropower, caused by
the methane emissions of the decaying vegetation.
Small-scale run-of-the-river hydro power is seen as having fewer negative social andenvironmental impacts than large-scale hydropower. However, different countries andorganizations use different minimum thresholds to differentiate between small-scale and largescale hydropower. Table 5 provides an overview of the different definitions of small-scalehydropower.
Table 5Country definitions of small-scale hydropower
Country

Threshold (MW)Brazil≤ 30

Canada

< 50

China

≤ 50

European Union ≤ 20
India

≤ 25

Norway≤ 10

Sweden≤ 1.5

United States

5-100

WWF

< 15

Source: Kumar, A., T. Schei, A. Ahenkorah, et al. (2011), “Hydropower”, in O. Edenhofer, R. Pichs-Madruga, et al. (eds), IPCC Special
Report on Renewable Energy Sources and Climate Change Mitigation, Cambridge, United Kingdom and New York, NY, USA:
Cambridge University Press, p. 450; WWF (2003), Hydropower in a Changing World, p.3.

Page | 21

Many other factors influence the amounts emitted, depending on the geographical location, theage of the reservoir, external inputs of carbon and nutrients, and characteristics of the reservoir
such as water flow, turnover time, area, depth, water level fluctuations and the positioning of
the turbines and spillways. Dams in tropical areas for example emit more methane than dothose in temperate or boreal areas.8 Experts also suggest that the environmental impact per
megawatt (MW) is dependent on the measures taken to mitigate the negative impact. It isbeyond the scope of this research to investigate the impact per MW of each hydropower plantin the power generation portfolios of all selected power generation companies for the period
under study. Moreover, as there is no consensus on the definition of small-scale hydropower, it
was decided that hydropower would not be included in this study.
•

Bio-energy
Biomass energy and biofuels are derived from various sources. The term refers to biologicalmatter that can be used as energy source for electricity generation and transport. The
biological can range from wood to edible crops to algae and other sources. Biomass can beburned directly, or can be turned into fuels by gasification, pyrolysis or anaerobic digestion.
Biomass is regarded by some as a renewable energy source because the carbon in biomass is
considered as part of the natural carbon cycle. This is because trees take in carbon dioxidefrom the atmosphere and convert it into biomass and when they die it is released back into theatmosphere. Whether trees are burned or whether they decompose naturally, the sameamount of carbon dioxide is released. The idea is that if trees harvested as biomass are
replanted as fast as the wood is burned, new trees take up the carbon produced by the
combustion, the carbon cycle theoretically remains in balance, and no extra carbon is added tothe atmospheric balance sheet. Therefore, biomass is considered by some as “carbon neutral.”
Replacing fossil fuels with biomass is thought to result in reduced carbon emissions.
However, whether or not biomass is truly carbon neutral depends on a number of factors:••••

what type of biomass is used,the combustion technology,
which fossil fuel is being replaced, andwhat forest management techniques are employed where the biomass is harvested.

Combustion of biomass and fossil fuels both produce carbon dioxide. When annual crops andother short-term biomass are burned, the carbon generated can generally be absorbed by thegrowing of new plants. However, when the biomass comes from wood and trees, the regrowing and thus the recapture of carbon take years or decades, and the carbon equation
would need to take into consideration the carbon that the trees would have naturally stored if
left untouched. This is particularly problematic as the majority of existing biomass power plants
currently use wood residue.
Furthermore, as with biofuels, described below, biomass is affected by a number of social andenvironmental issues. As described above, biomass can include agricultural waste, production
forest wood chips, and wood pellets, among other things. Issues generally tend to arise whenwood is being cultivated in order to produce wood pellets. There are numerous reports of forest
destruction (also leading to CO2 emissions) for monoculture development, as well as of land
grab and loss of livelihoods related to such developments.
Another form of bio energy is biofuels. Biofuels can come in different forms, including ethanoland biodiesel. They are derived from different feed stocks including sugar beets, sugar cane,soy, palm oil, wheat, corn, and jatropha. However, the biofuels sector is afflicted by numerous
controversies. Again, there are significant concerns including issues regarding food security,
deforestation, legality of operations, human rights and labour issues, community displacement
and land grabs, loss of livelihoods, the impact of monoculture on ecosystems, and soil
degradation.

Page | 22

Due to these controversial issues regarding biomass and biofuels, bio energy is not a clear-cut
viable alternative to traditional fossil fuels. It is therefore not included in this study.
3.1.3

Final selection of energy sources

Table 6 presents the final categorisation of activities related to coal, oil & gas, nuclear andrenewable energy selected for the purpose of this study. Based on the discussion in section 3.1.2,
other sources of energy are not taken into account in this study.
Table 6

Activities related to coal, oil & gas, nuclear and renewable energy

Coal

Oil & Gas

NuclearRenewable Energy

Coal-fired power
generation

Gas-fired power
generation

Nuclear power

Geothermal energy equipment
manufacturing

Coal mining

Gas production andrefining

Geothermal energy generation

Oil-fired power generation

Ocean energy engineering

Oil production and refining

Ocean energy generation

Oilfield services

Solar energy generation

Pipelines

Solar panel manufacturing (PVand CSP)Wind power generation
Wind turbine manufacturing

3.2

Analysing the activities of the energy companies

For each of the companies selected, we analysed which proportion of their activities can be
attributed to coal, oil & gas, nuclear and renewable energy, and to other activities inside andoutside the energy sector. Using these segment adjusters made it possible to attribute a
percentage of each loan to, and each investment in, the selected companies to coal, oil & gas,
nuclear and renewable energy. A general corporate loan to a power company, or an investment in
the shares of that same company, can be used by the power company to finance all types ofactivities it is involved in. For general corporate loans and investments provided to companies
active in more than one segment, the segment adjusters therefore are used to attribute thefinancing and investment amounts to the different activities in which the energy company is
involved.
Due to a lack of data availability, segment adjusters were calculated in the same way for eachcompany. Preferably, data on the annual capital expenditure (capex) per sector or segment inwhich the company is active were used. These data are also referred to as the annual addition to
non-current assets per sector/segment.
For some companies, capex-data per segment are not available, or the segment classification
used by the company is too broad to distinguish between the activities listed in Table 6. In thesecases, the following proxies were used in order of preference:
•
•
•
•
•

for electricity companies: the installed electricity generation capacity broken down by energy
source;segment distribution of assets;
segment distribution of costs;
segment distribution of profits;
an estimate based on the description of the company’s activities.

Page | 23

The segment distribution of capex, assets, costs and/or revenues were primarily identified throughannual reports, company filings and investor presentations. Segment adjusters were calculated
separately for each of the last five years (January 2016-June 2021).

3.3

Researching the financing of the energy companies

In this research step, data was be gathered on the financing of, and investments in, the selectedcompanies (see section 3.1) by the selected banks, insurers and pension funds (see Table 1). This
research focused on the last five years, from January 1, 2016 until June 30, 2021.
Sources used for banks and insurers include the Bloomberg, Thomson EIKON (part of Refinitiv),
Orbis, IJGlobal and TradeFinanceAnalytics databases; annual reports and stock exchange filingsof companies; company registers and media sources. All amounts found were converted, where
necessary, to USD against the prevailing exchange rates at the moment the financing wasprovided or the investment was reported.
From these data sources, the following data was retrieved for different forms of financing andinvestments:•••

All loans (trade finance, project finance, general corporate loans, revolving credits) provided in
the last five years (since 1 January 2016) were taken into account;
All underwritings of share and bond issuances in the last five years (since 1 January 2016)
were taken into account;
For investments in shares and bonds, the outstanding values at the most recent portfolio data
were considered. No distinction was made between investments for own account and asset
management for third parties.

For syndicated loans and underwriting syndicates some extra estimates were needed to divide theso-called principal amount among all banks participating in the syndicate. The names and roles ofall banks that participate in the syndicate are usually found in the data sources. When the actual
amounts for which banks participated in the syndicate were also available, this break-down was
obviously used and no further estimates were needed.
If there were no data available on how the principal amount was divided among the various banks
participating in the syndicate, an estimate was made based on the following guidelines:•

When the fees received per bank were known, the ratio of a bank’s management fee was used
to estimate its financial contribution to the loan or issuance. This was calculated as follows:"#$"%"$&'()'#*+,-..

Bank’s contribution: ! ∑ 0-'(()'#*,+-.., ∗ 𝑝𝑟𝑖𝑛𝑐𝑖𝑝𝑎𝑙𝑎𝑚𝑜𝑢𝑛𝑡=•

When the fees were unknown for one or more participants in a deal, we first calculated thebookratio to determine how the principal amount was divided between the bookrunners (thebanks arranging the deal) and the other banks participating more passively in the syndicate.
The bookratio was calculated as follows:
Bookratio:#&>).?0-)'#*,–#&>).?0-)00*?&##.?,#&>).?0-)00*?&##.?,

Table 7 shows which share of the principal amount was then divided to the bookrunners,
depending on the bookratio calculated. This table is based on experience gained by Profundo
over the years with analysing thousands of loan and issuance syndicates for which thecontribution of individual banks were known. Experience learns that for loan syndicates, theshare of the principal amount that is divided between the bookrunners decreases when the
total number of banks in the syndicate increases. For issuance syndicates this is not the case.
Table 7

Contributions assigned to the bookrunners in loan and issuance syndicates
Bookratio> 1/3

Loans Issuances
75%

75%

Page | 24

> 2/3

60%

75%

> 1.5

40%

75%

> 3.0

< 40%*< 75%*For loan and issuance syndicates with a bookratio of more than 3.0, we use a formula which
gradually lowers the commitment assigned to the bookrunners as the bookratio increases. The
formula used for this was:1√𝑏𝑜𝑜𝑘𝑟𝑎𝑡𝑖𝑜
1.443375673
The number in the denominator is used to let the formula start at 40% in case of a bookratio of
3.0. As the bookratio increases the formula will go down from 40%. For issuance syndicatesthe figure in the denominator is 0.769800358.
This research step resulted in an overview of the selected financial institutions, showing per bankand insurer with which companies from the selected list of companies they have financial links andfor which amounts they financed, or invested in, these companies in the past five years (2016 2020).

3.4

Combining financings and investments with segment adjusters

The financing and investment data identified for each financial institution (see section 3.3) werethen combined with the relevant segment adjusters (see section 3.2). For example, if we found that
Oil Company A received a general corporate loan from Bank B for USD 100 million in 2019. During
this financial year, 95% of Oil Company A’s capex went to oil, 3% to wind power, and 2% to not
relevant activities. USD 95 million were therefore attributed to oil & gas, USD 3 million to
renewable energy, and USD 2 million would not be included in the analysis. The same calculation
applies to an investment in shares or bonds of Oil Company A by Insurance company C or Bank D.
After making these calculations for all financings and investments found, the total amounts
financed and invested by each bank or insurer can be added up, for coal, oil & gas, nuclear andrenewable activities. As all financing attributable to other energy activities as well as to non-energy
sectors is ignored, the total financing analysed for each financial institution is usually lower than
the actual financing provided to the selected companies as found in section 3.3.

Page | 25

References
1

LULUCF refers to GHG emissions from land-use, land use change and forestry. More information on the definition
and inclusion of LULUCF in GHG emission calculations can be found here:
https://unfccc.int/land_use_and_climate_change/lulucf/items/1084.php, viewed in February 2021.

2

United Nations Framework Convention on Climate Change (n.d.), “GHG Profiles – Annex I”, online:
http://di.unfccc.int/ghg_profile_annex1, viewed in February 2021.

3

United Nations Framework Convention on Climate Change (n.d.), “GHG Profiles – Annex I”, online:
http://di.unfccc.int/ghg_profile_annex1, viewed in February 2021.

4

United Nations Framework Convention on Climate Change (n.d.), “GHG Profiles – Annex I”, online:
http://di.unfccc.int/ghg_profile_annex1, viewed in February 2021.

5

United Nations Framework Convention on Climate Change (n.d.), “GHG Profiles – Annex I”, online:
http://di.unfccc.int/ghg_profile_annex1, viewed in February 2021.

6

SEI, IISD, ODI, E3G, and UNEP (2020), “The Production Gap Report: 2020 Special Report”, online:
http://productiongap.org/2020report, viewed in February 2021.

7Intergovernmental Panel on Climate Change (2015, February), “Climate Change 2014: Mitigation of Climate
Change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on
Climate Change”, New York: Cambridge University Press, p. 539-540;
Lewis, S. Estefen, et al. (2011). “Ocean Energy,” in: IPCC Special Report on Renewable Energy Sources andClimate Change Mitigation. Prepared by Working Group III of the Intergovernmental Panel on Climate Change [O.
Edenhofer, R. Pichs-Madruga, et al. (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New
York, NY, USA, p. 518.

8

Fearnside, P.M. (2016, April), “Greenhouse gas emissions from hydroelectric dams in tropical forests”. in:
Alternative Energy and Shale Gas Encyclopedia, [J. Lehr & J. Keeley (eds.)], John Wiley & Sons Publishers, New
York, USA, pp. 428-438.

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