New report: RBS fossil fuel funding costs taxpayers dearly
A new report has found that RBS' investments in fossil fuels will cost taxpayers dearly. The report, written by financial expert Nick Silver, argues that the best way to increase RBS' financial value to the public is to stop funding coal, oil, gas, and tar sands.
A new report Towards a Royal Bank of Sustainability: protecting taxpayers’ interests; cutting carbon risk , has been published by People & Planet, Platform, Friends of the Earth Scotland and the World Development Movement.
The independent report by industry insider, Nick Silver, argues that UKFI, the company set up to manage the government’s shares in the bailed-out banks, should take an ‘active ownership’ approach to its investments with respect to environmental and social issues. At the moment the Treasury falls far short of current best practise for institutional investors. The report also points to the financial risks to taxpayers of allowing bailed-out RBS to continue to invest in projects driving climate change.
The foreword was written by Dr Craid MacKenzie, director of the Centre for the study of Business and Climate Change, Edinburgh University Business School. Commenting on the government’s refusal to take an active interest in the affairs of a company it owns an 84% stake in, he says:
“The roots of the financial crisis lie partly in the failure of owners to play a sufficiently engaged part in the governance process of banks. It would be ironic if the solution to the current crisis were to create a governance vacuum which leads to the next one.”
Dr Craig Mackenzie, Edinburgh University Business School
Ian Leggett, Director of People & Planet said:
“Taxpayers have already had to pick up the tab for bailing out RBS for its irresponsible lending. Yet if the government allows it to carry on investing in projects and companies in the certain knowledge that such investments will accelerate climate change, we will have to pick up an even bigger tab in the future. Investing in high carbon projects is not in shareholders’ and taxpayers’ interests and the sooner RBS stops supporting climate damaging projects the better.”
“Nick Silver’s report demonstrates that the government is failing to act even like a normal responsible shareholder. They are behaving worse than many pension funds. That the government is allowing a company to support such projects with our money is reprehensible. We may all be paying for the costs of this mistake for generations to come.”
Ian Leggett, director of People & Planet
Take Action You can download the report here and help clean up RBS by emailing your MP with a copy.
