The green/fossil fee league tables were fairly static quarter-on-quarter. Wells Fargo retained the bottom-most spot amongst large banks, a reflection of the quantity of fossil deals it has been involved with recently. RBC and BofA also continued to make a larger percentage of their fees from fossil activity rather than green bonds.
French banks continued to dominate the top of the table, with Societe Generale usurping BNP Paribas for the top-most spot this quarter.
MUFG moves a further place higher (+5 last quarter), and notably now generates more fees from green deals than fossil.
In ASEAN, OCB and UOB topped the rankings, while SMBC and Mizuho Financial held the bottom two spots.
As for this quarter’s analysis of deals potentially exposure to deforestation, we found that Citi once again generated the highest fees from in-scope companies, the same as the last two quarters. Wells Fargo and HSBC followed close behind. These banks are strong candidates for engagement activity by investors concerned about deforestation risks.
The Box is an AFII tool investors can use to grade banks based on the bond and loan syndication fees they make from climate- and forest-harming activities. Using it, they can select those counterparties that most closely align with their sustainability objectives, and incentivise other dealers to change their ratio of green/fossil financing.
