WHEREAS: The Intergovernmental Panel on Climate Change says global greenhouse gas emissions must reach net zero by 2050 to meet the Paris Agreement’s goal to limit warming to 1.5 degrees Celsius and avoid the worst climate impacts. At current emissions trajectories, approximately 10 percent of global economic value could be lost by 2050.1
New coal capacity is inconsistent with limiting global warming to 1.5 degrees Celsius.2 Burning coal presents risks to environmental and human health, with Black and low-income communities often facing higher levels of air pollution and related health impacts.3 According to the International Energy Agency, all scenarios to meet the Paris Agreement require a rapid decline in coal use, with forecasts that global coal demand will peak within the next five years.4 Governments and investors globally support a “just transition” that anticipates the impacts of the climate transition on workers, communities, and stakeholders. Banks play a critical role in limiting global temperature rise and may face substantial risks in continuing financing of high-emitting projects or companies. As the highest-emitting power source,5 phasing out coal can avoid an estimated $267 billion of stranded asset risk globally.6
Huntington Bancshares’ (“Huntington”) Environmental Social Governance (ESG) report acknowledges that “in alignment with...the Paris Agreement... a net zero carbon economy is a valuable and necessary effort.” It notes its plans to evaluate financed emissions through its participation in the Partnership for Carbon Accounting Financials (PCAF).7 Huntington also recognizes the need to address the disproportionate impacts of climate change and environmental health on Black, Indigenous, and People of Color (BIPOC) communities. Despite this, reports indicate that Huntington lent $338 million and underwrote $234 million to thermal coal companies and projects between January 2019 and November 2021, including coal producers, exporters, and utilities with coal-fired generation.8 Huntington currently has no commitment or public plan to phase out coal financing.
Over 300 financial institutions have policies restricting financial services to the coal sector,9 and the net- zero strategy of many banks includes complete or partial coal phase-out policies.10 Among peers, U.S. Bancorp prohibits financing of new coal-fired power plants and coal producers, and conducts enhanced due diligence on coal mining and electric power generation from coal.11 Further, Comerica, states it conducts enhanced due diligence around coal-related businesses.12