Posted
FinanceAre Luxembourg banks greenwashing?
LUXEMBOURG – Greenpeace Luxembourg accuses several Luxembourg banks of promoting sustainable investments which are not really sustainable. The ABBL regrets the NGO’s methods.
Greenpeace Luxembourg presented its study this week.
editpress
Ethical and sustainable investments, green finance, so many terms that have become imposed figures in most financial establishments wishing to show their concern for the environment. The Luxembourg financial center is no exception to the rule. But what is really behind these eco-responsible financial products? Not much, says Greenpeace Luxembourg, which published a vast survey on the subject this week.
19 clients and mystery clients conducted 27 advisory meetings in 6 different financial establishments – Banque de Luxembourg, Banque Internationale à Luxembourg, Banque et Caisse d’Epargne de l’Etat (Spuerkeess), Banque Raiffeisen, BGL BNP Paribas, ING Groep – It shows that “none of the products presented as climate-friendly follow a trajectory of reduction in the intensity of greenhouse gases that is compatible with the objective of a maximum global warming of 1.5°C” , explains Dr. Martin Granzow, financial expert of Nextra Consulting GmbH and author of the report.
“Additional proof of greenwashing,” says Greenpeace, which does not spare the investment fund sector, the main source of wealth in Luxembourg. “Banks must first do their own homework in order to be able to advise their customers correctly on sustainable investment”, considers Martina Holbach, finance campaigner at Greenpeace Luxembourg.
Too restrictive a report?
Conclusions too severe for the ABBL, which split a press release on Friday to defend Luxembourg banking establishments. For the Association of Banks and Bankers Luxembourg, the methodology used by Greenpeace is far too restrictive, and conducive to negative conclusions: “Financial products specifically aligned with the Paris agreements only represent a very limited proportion of the universe of sustainable investments”. What’s more, bankers face a lack of data in this area, adds the association.
Denying any “greenwashing”, the ABBL believes that Greenpeace should have relied more on European regulations “which go far beyond purely climatic aspects and which bankers are required to apply”. However, she says she is “aware of the necessary efforts to be made”, particularly in terms of training professionals on this subject.
