Some of Britain’s biggest banks contributed billions of pounds to oil and gas financing last year, while just two were found to meet high ethical standards, analysis by a consumer group has revealed.
Which? Money said consumers may not be aware that some high street lenders were investing “ever larger sums into environmentally damaging industries”.
Which?’s analysis follows research finding that the world’s biggest banks significantly increased their fossil fuel finance in 2024.
It marked a shift in direction after the financing had been decreasing over the previous years since 2021.
The top 65 lenders committed 869 billion dollars (£648 billion) in financing fossil fuels, the Banking on Climate Chaos report said in June.
Which?, alongside non-governmental research groups Reclaim Finance and Global Canopy, examined the environmental policies of 16 current account providers in the UK.
It highlighted two banks – the Co-operative Bank and Triodos Bank – that had no exposure to fossil fuels in their banking activities and set themselves high ethical standards.
Which? gave the two lenders an “Eco Provider” endorsement for their green credentials.
It found that Triodos was unique in publishing its entire loan portfolio so customers can see where their money is being spent.
Meanwhile, seven banks – Barclays, Chase, Danske Bank, HSBC, Lloyds, NatWest and Santander – were found to contribute significantly to the financing of fossil fuels.
Which?’s analysis showed that JP Morgan’s Chase had coal, oil and gas policies which enable firms to actively expand operations involving fossil fuels, while it had also replaced strong deforestation requirements for some companies with weaker ones.
The bank was the largest fossil fuel financier in the world, committing 53.5 billion dollars (£40 billion) to fossil fuel companies in 2024, according to the Banking on Climate Chaos report.
A spokesperson for JP Morgan Chase said it was the “leading global financier of diversified energy sources” and that it had a target of one trillion US dollars (£750 billion) for climate initiatives by the end of 2030.
Santander was found to have policies that allow it to support its customers developing new fossil fuel projects, while also lacking key protections for palm oil, soil, beef, and leather.
A spokesperson for Santander said it is “supporting companies in their transition to a low-carbon economy and has been financing the build-out of renewable energy capacity for decades”.
Barclays and HSBC were called out by Which? for significantly increasing their financing of fossil fuel projects last year, despite publicly making clean energy commitments.
A spokesperson for Barclays said: “Many of the economies we serve still depend on conventional energy for reliable and affordable power as they transition to renewables.”
The bank added that it was committed to its ambition to be a net zero bank by 2050.
Which?’s analysis showed that Lloyds and NatWest were less involved in fossil fuels than their peers, with more solid requirements for companies and transparency in their reporting, but still contributed billions of pounds.
Sam Richardson, Which? Money’s deputy editor, said: “Many consumers want to make sustainable choices, but a lack of accountability and transparency in the banking sector can make it hard to understand where customers’ money is really going.
“Worryingly, our latest research has shown that far from making progress in this area, many major banks are instead choosing to invest ever larger sums into environmentally damaging industries.”
He added that the “Eco Provider” label highlights banks that have “zero exposure to the likes of coal, oil or gas in their banking activities”.
