Financial research on the coal sector shows that a total of $228 billion is being invested, as of December 2021, in the coal industry via bonds. While climate science is calling for an annual decrease of global coal production and a swift exit of the sector, over a quarter of this amount – $60 billion – is being invested in companies that are expanding their coal operations.

Who are the top coal bond holders? In line with the wider analysis, a small number of financial institutions play an outsized role when it comes to investing in coal bonds. The top five investors in coal bonds account for 20% of all coal bond holdings.

**Which investors are the most hypocritical?**

While being among the biggest bondholders of coal companies is a problem in itself, the financial research also reveals glaring contradictions between the amounts being invested in coal bonds and the net-zero commitments made by the same institutions.

**Allianz**

Allianz is one of the biggest insurers worldwide and is a member of the Net Zero Insurers Alliance, Net Zero Asset Owners Alliance and the Climate Action 100+. It has recently updated its coal policy and, while it aims for a coal phase-out worldwide by 2040, the criteria are still loopholed, including on bonds. More importantly, Allianz does not apply its divestment policies to the more than $1 trillion in third party assets which it manages (via its branches Allianz GI and PIMCO). This results in the institution being right at the top of the tables as the fourth largest holder of coal bonds ($7.6 billion) and one of the largest investors in coal development via the most Toxic Bonds (i.e. linked to coal expansion), in complete contradiction with its commitments.

**HSBC**

HSBC is a member of the Net Zero Banking Alliance and, under pressure from shareholders, made a commitment to a total phase-out from the coal sector by 2040 worldwide. Yet HSBC is still supporting the expansion of the industry – including via investment of nearly $650 billion in the most Toxic Bonds, meaning the bonds linked to coal expansion.

**BlackRock**

BlackRock adopted in 2019 a very weak coal policy. Because of its many loopholes, BlackRock still has over $9.8 billion in coal bonds, $ 2.7 billion of which is invested in the most Toxic Bonds, meaning the bonds linked to coal expansion. BlackRock is also one of the biggest buyers of new fossil fuel bonds worldwide and has not committed to stop buying future debt issued by coal developers. Despite these appalling figures, BlackRock is still a member of the Net Zero Asset Manager Initiative.

Bonds are a critical source of funding for the coal industry and might make their holders the last resort for companies looking to expand their coal operations. Financial institutions must deny any future debt to these companies and divest from their existing coal bond holdings. Beyond the obvious dramatic indirect climate impacts of such investments, investors will also risk losing money if they don’t rapidly move away from fossil fuels.

[➔ Read more here](https://reclaimfinance.org/site/wp-content/uploads/2021/10/Media-Briefing_GCEL_ENG_07102021.pdf)

Financing the Global Coal Exit List 2021

For years #StopAdani activists, Indigenous leaders and concerned people have fought tirelessly to expose businessman **Gautam Adani’s horrific human rights and environmental record across India and Australia.**

In the last couple of weeks the news has exploded onto global front pages. With a top financial firm uncovering a two year long investigation into the Adani Group, **declaring it “one of the largest corporate frauds in history”.**

**The company and CEO Gautam Adani are in crisis:** he has already gone from 3rd to 17th richest person in the world.

Despite the bad press, **the Adani Group still has dozens of new coal mines**, plants and even a coal-to-plastics operation in the pipeline. And they will continue to be built, unless investors deny debt to Adani. Right now none of Adani’s biggest investors have ruled out supporting Adani. **We need to turn the heat up on Adani’s biggest investors like TIAA, Blackrock, Pimco and abrdn.**

**[Will you sign the petition demanding that investors stop funding the Adani Group?](https://act.sumofus.org/go/646224?t=1&ak_proof=1&akid=%2E13285738%2EXTs5mP)**

We’ve done it before, only last summer 50,000 members made their voices heard at the Adani AGM with the #AdaniLies being seen by millions all over the world. **We uncovered that Adani was in fact planning to expand across 18 coal mines,** contrary to his efforts to spin a new green image for the company. 

Adani’s business model can be seen openly in India where its mining expansion will destroy India’s most ancient and bio-diverse forests, considered as the “Lungs of central India”. Thousands of indigenous Adivasi people and farmers, the poorest in India, are fighting for their forests, land, homes and livelihoods and continue to protest for their rights.

**Adani’s devastating coal expansion has only been made possible because of trillions in financing from the world's most prestigious financial institutions.**

**[It will only be stopped once the biggest investors like TIAA, Blackrock, Pimco and abrdn rule out any new debt to Adani. Will you sign the petition? ](https://act.sumofus.org/go/646224?t=2&ak_proof=1&akid=%2E13285738%2EXTs5mP)**

A top investment research firm dropped an explosive report calling Adani “one of the largest corporate frauds in history." But it’s not enough to stop CEO of Adani Group, Gautam Adani - yet. It will only be stopped once investors pull out.

 Banks and Investors: Get Out of Adani

Toxic Bonds initiative sent letters to 51 major Adani investors - including Adani’s largest bondholders Blackrock, TIAA, PIMCO and abrdn - urging them to deny new debt to the Adani Group and to divest all current holdings from the conglomerate. 

This letter came shortly after the publication of Hindenburg Research’s explosive report, which alleged  “brazen accounting fraud, stock manipulation and money laundering” across the group and resulted in a free fall of more than [$140 billion](https://www.bloomberg.com/news/articles/2023-03-02/adani-group-stocks-climb-amid-series-of-block-trades) for Adani. It has led to investigations into the group’s finances and exposes about its murky dealings. 

One of the biggest skeletons tumbling out of Adani’s cupboard has been revelations - long speculated but now enumerated - regarding the heavily interconnected nature of Adani’s various businesses. Of particular concern for investors which operate with an ESG mandate is a recent [report](https://www.reuters.com/world/india/adani-group-firms-pledge-shares-lenders-flagship-company-sbicap-trustee-2023-02-11/) revealing that Adani is using stock from its green companies as [collateral](https://www.bloomberg.com/news/terminal/RPX9CET1UM0W) to finance the Carmichael [coal mine](https://www.bloomberg.com/news/articles/2019-07-08/billionaire-adani-doubles-down-on-controversial-aussie-coal-mine) in Australia. 

In recent years, Adani has been keen to portray itself as the green energy champion of India by announcing investment of [$70 billion](https://www.bloomberg.com/news/articles/2022-09-07/third-richest-adani-adds-more-detail-on-70-billion-green-push) in green projects. Generally sidestepped in the investor presentations about its green ambitions is the fact that it is investing far more in new fossil fuel projects. To fund these project Adani has issued more than $1.25 billion in green bonds in the global market in the last 3 years. 

However, [increasing evidence](https://www.bloomberg.com/news/articles/2023-02-27/jpmorgan-investment-arm-purges-its-esg-funds-of-adani-stocks) that Adani’s green ventures are being used to help prop up its coal mining activities should worry investors that that green investments are not safely ring fenced within the Adani group.

We decided to share a video with Adani’s investors to remind them that they can no longer keep sticking their heads in the sand.

<iframe src="https://www.facebook.com/plugins/video.php?height=314&href=https%3A%2F%2Fwww.facebook.com%2FEko.Movement%2Fvideos%2F1535318440279609%2F&show_text=false&width=560&t=0" width="560" height="314" style="border:none;overflow:hidden" scrolling="no" frameborder="0" allowfullscreen="true" allow="autoplay; clipboard-write; encrypted-media; picture-in-picture; web-share" allowFullScreen="true"></iframe>



The #StopAdani movement, frontline Indigenous communities, and environmental and human rights advocates have been warning about Adani’s dodgy corporate behaviour for years, and have been calling on financial institutions to steer clear of Adani due to their coal expansion, and violation of human rights. 

Furthermore, over [60,000 people](https://actions.eko.org/a/banks-and-investors-get-out-of-adani) have called banks and investors like Blackrock, TIAA, PIMCO and abrdn to drop Adani. The group's devastating coal expansion has only been made possible because of trillions in financing from the world's most prestigious financial institutions. It will only be stopped once these investors pull out.

**Investors who responded**

The responses we have so far received from a few investors such as Deutsche Bank AG, AXA IM and Jupiter Fund Management Plc can be seen below-

![](/images/uploads/wedo-not-comment-publicly-1-.jpg "Investors who responded")

**Investors who are yet to respond:**

![](/images/uploads/a-investors-no-resp.jpeg "Investors who are yet to respond")

Investors response on Adani

The Adani Group - the world’s largest private coal operator - has been on a coal expansion spree thanks to generous funding by the world’s leading banks and investors. Global bond investors have pumped $9 billion into the group in the last 5 years and it was planning to raise an additional $10 billion of debt this year to fund its aggressive expansion of new coal projects. Those plans now hang under a cloud. Why?

Today, Adani stands accused of pulling “the largest con in corporate history” by activist shortseller Hindenberg Research. Hindenburg's report describes “brazen accounting fraud, stock manipulation and money laundering” across the group and puts a dazzling spotlight on Adani’s humongous debt, showing the group’s seven listed entities as over-leveraged and over-valued. 

This is a company which already stands guilty of unabated coal expansion, fuelling climate change, destroying environment and natural wonders like the Great Barrier Reef and trampling on the rights of vulnerable, indigenous communities like Wangan and Jagalingou Traditional Owners in Australia and Adivasi people in Central India.

Since the report’s release, over USD $100billion has been wiped from the company’s value, with shares and bonds down amidst rampant selling and Gautam Adani has plummeted down the world's rich lists.  

But big questions remain for the investors, insurers and banks that have long been funding Adani’s coal expansion. It’s only through their support that Adani has pulled off his ‘miracle’ growth. Growth that now hangs under a cloud of suspicion.

**The Investors**

Our research reveals that Adani’s spectacular success has been bankrolled by some of the biggest names in finance. Adani keeps using this financial backing to justify its financial reputation, implying such investors would not have been involved in the company otherwise! It's a ploy that can no longer work for Adani and nor for the brands of the prestigious firms behind it. These investments have been exposed and some of Adani’s largest investors like TIAA, Blackrock, PIMCO and abrdn - can no longer justify their investments in Adani.    

![](/images/uploads/bar-graph-presentation-7-.png)

We wrote to 51 major investors including TIAA, Blackrock, PIMCO and abrdn, asking them to unequivocally stop buying Adani’s debt untill the company adopts a 1.5°C aligned energy transition plan. We are still waiting for them to break their silence on Adani.

As the scandal continues to spread we have seen action from a small number of investors like KLP (Norway’s largest pension fund) which has divested from Adani fearing it could “inadvertently finance the group’s coal investments” and S&P Dow Jones removed the group’s flagship company, Adani Enterprises, from its Sustainability Indices. This raises significant concerns whether investors like Blackrock, TIAA, PIMCO and abrdn-  are serious about climate change and financial fiduciary.

Adani Group’s flagrant disregard for even the most basic standards of good corporate governance and transparency has been unmasked. It has escalated investigations and actions into the group by various government regulators, credit rating agencies, banks, sustainability indices and investors. It is evidently clear that Adani cannot be trusted. Can banks and investors afford to continue to willingly keep their eyes and ears closed about Adani? 

**The Demand**

Members of the Toxic Bonds initiative sent letters to 51 major investors including Blackrock, TIAA, PIMCO and abrdn, urging them to deny debt to the Adani Group and divest all investments from the company, so that it cannot continue its reckless programme of coal expansion without a clear 1.5°C-aligned transition plan. 

**[U﻿pdates on Investors responses](https://adanitoxicbonds.org)**

**[L﻿etter to Bondholders](https://adanitoxicbonds.org/wp-content/uploads/2023/02/Toxic-Bonds-Adani-Letter-Hindenburg.pdf)**

**[Letter to Green Bondholders](https://drive.google.com/file/d/1Sk9RZiEi2vLw9ZgCoFMfguk7nznfZtTE/view)**

**The Petition**

The #StopAdani movement, frontline Indigenous communities, and environmental and human rights advocates have been warning about Adani’s dodgy corporate behaviour for years, and have been calling on financial institutions to steer clear of Adani due to their coal expansion, climate change escalation and violation of human rights. 

Over 60,000 people have called banks and investors like Blackrock, TIAA, PIMCO and abrdn to drop Adani. Adani’s devastating coal expansion has only been made possible because of trillions in financing from the world's most prestigious financial institutions.

**[S﻿ign the petition here](https://actions.eko.org/a/banks-and-investors-get-out-of-adani)**

Investors: Time to Get Out of Adani

**Adani's terrible year is only getting worse.** Since it was accused of the "the largest corporate con in history" the world's biggest private coal company has been in free fall. It's been sued, it's had billions wiped off its value and a growing number of banks don't want to touch it. **But one bank has been totally silent. Its bestie, Barclays.** 

Barclays has been playing a crucial role in helping the Adani group secure large sums of cash from investors for its coal expansion. In the financial world it's called Adani's “relationship bank” - which means it's there by its side through every major deal.

Right now the Adani group is in big trouble and Barclays is doing what a good bestie would do - trying to assure big investors and finance that Adani is still good. Thats why **we need to show Barclays that now is not the time to stand by Adani.** [Will you demand Barclays cut ties with Adani? Add your voice now!](https://actions.eko.org/a/barclays-it-s-time-to-break-up-with-adani/?source=fwd)

**Barclays is the largest European funder of fossil fuels** and its clients include climate wreckers like Adani, Shell and Exxon. Its claim of leading the charge to a sustainable future is nothing more than hot air. Only 2% of its energy finance goes to renewable energy. The rest, for fossil fuels, is destroying the climate.

Adani’s investors like TIAA, Blackrock, PIMCO and abrdn are already feeling the pressure, thanks to yours and others support. Now we need its biggest banker Barclays to feel it too.

The only way to stop Adani’s devastating coal expansion is by turning off the funding tap for the company. **We need to show bankers like Barclays that supporting Adani is not just deadly to the planet - but to their reputation as well!**

[Yes, I will sign the petition demanding that Barclays break up with Adani and coal!](https://actions.eko.org/a/barclays-it-s-time-to-break-up-with-adani/?source=fwd)

Want to do more? [Share this video on Instagram](https://www.instagram.com/reel/CoU4hn1Pu05/?utm_source=ig_web_copy_link) or here on [Twitter](https://twitter.com/bankonourfuture/status/1622891363992739841?s=20&t=BhSnTGUhvYjgy6_F0j7rlw).

Right now the Adani group is in big trouble and Barclays is doing what a good bestie would do - trying to assure big investors and finance that Adani is still good.

Tell Barclays: it's time to break up with Adani

At the end of last year, members of the Toxic Bonds initiative sent letters to 71 major investors urging them not to purchase bonds in KEPCO, South Korea’s largest utility company, until the company adopts a 1.5°C aligned energy transition plan.

Although not a household name across the world, KEPCO presents a useful case study in how global investors can use bond markets to positively influence companies who lag behind on climate commitments. Here’s why:

KEPCO is currently going through the worst financial crisis in its history, it is forecasted that KEPCO will experience a growing deficit this winter, with soaring energy demand and fuel prices.  

Without a Paris-aligned coal phaseout plan, KEPCO recently issued USD [800 million worth of green bonds](https://www.bloomberg.com/news/articles/2022-06-07/debt-saddled-kepco-turns-to-dollar-green-bond-after-losses-mount). This comes after issuing a steep USD [8 billion in corporate bonds](https://www.sedaily.com/NewsVIew/263LCCL8H6) in the first quarter of 2022 after reaching a [net debt of](https://www.hanaw.com/download/research/FileServer/WEB/industry/industry/2022/05/03/Utilities_2H22_.pdf) 40 trillion won (USD 31 billion) at the end of last year. 

According to newest GCEL data KEPCO has installed coal capacity of 74358 MW, with a current output of 97.5 million metric tonnes in coal production, with expansion plans of 20840 MW in total. A fossil fuel company that still has plans for expansion in coal, cannot be Paris aligned, no matter the green or SLB-linked bonds they generate. 

In short: **KEPCO is in financial strife because it has failed to invest in transition to renewable energy and is now relying on global bond markets to fund its operations. This gives bond investors a powerful opportunity to engage the company over its transition policies. And if KEPCO fails to deliver them - deny debt.**

Here are the responses from the handful that engaged:

* **a﻿brdn do not commit to deny dent to KEPCO.**

abrdn has absolutely no coal policy in place and confirms they will keep financing KEPCO.

> *Many thanks for your letter of 25 August 2022. I am very happy to reply on behalf of abrdn regarding our holding in KEPCO but before doing so it may be worth providing some wider context. As a global investor we manage and administer approximately £508bn (as of September 2022) of assets for clients. We undertake this activity based on investment mandates set by our clients who seek exposure to a specific asset class or a combination of assets as part of a diversified portfolio which meets their investment horizons and risk/return requirements (such as institutional investors or pension funds).*
>
> *Emerging Market Debt (EMD) is a widely used asset class in strategic asset allocation and portfolio construction. It is also a key source of finance for developing countries which require private sector capital to invest in economic and social infrastructure and other assets essential to long-term economic growth and stability.*
>
> *As stewards of our clients’ capital we have a fiduciary duty to ensure such investments are aligned to their requirements but also to our own values as a responsible investor and the Environmental, Social and Governance (ESG) considerations which are integrated into our decision making.* 
>
> *As part of our investment processes we research and analyse sustainability and other risks regardless of where an investment is located. We apply these principles to all asset classes in four ways:*
>
> 1. *Our investment processes – we integrate and appraise ESG factors in our investment processes to seek the best long-term outcomes for our clients.*
> 2. *Our investment activities – we actively take steps as stewards to deliver long-term, sustainable value.*
> 3. *Our client journey – we clearly define and report on how we act in our clients’ interests in delivering our stewardship and ESG principles.*
> 4. *Our corporate influence – we actively advance policy, regulation and industry standards to deliver a better future for our clients, the environment and society.*
>
> *In relation to our holding in KEPCO, we have continued engagement with KEPCO, [please see the attached Global ESG Investment Stewardship report for more detail](https://www.abrdn.com/europe/sustainable-investing#). We remain in frequent contact with KEPCO on ESG matters including climate and energy transition.* 
>
> *I hope this reply addresses the points you have raised in your letter. I can also give you an assurance that we will continue to act in accordance with our ESG principles and stewardship responsibilities.*

* **U﻿nion Investment commit to deny debt to KEPCO.** 

Union Investment divested from KEPCO, because KEPCO is still expanding in coal power plants and engagement with the company turned out to be ineffective and fall of stalling by KEPCO.

> *As part of this coal policy, Union Investment has decided to completely divest from all coal producers within five years. Since February 2020, we have no longer been buying securities from companies that regularly generate more than five per cent of their revenue from the extraction of thermal coal.*
>
> *In addition, Union Investment decided in February 2020 to withdraw from financing coal-fired power generation. To achieve this goal, Union Investment entered into dialogue with all relevant electricity suppliers in our investment universe to find out how these companies intend to achieve climate neutrality by 2050. Some of these companies were able to present us with a credible plan for phasing out coal-fired power generation and are therefore still investable for our funds. On the other hand, companies that generate more than 25 per cent of their energy with thermal coal and companies that have not been able to present a clear plan or have not achieved milestones in their transition to carbon neutrality have been excluded from our investment universe. We will regularly review the universe of eligible power generators and gradually reduce the allowable cap on coal-fired generation to zero by 2035.*
>
> *In this context, we have also initiated a corporate dialogue with Korea Electric Power Corporation (Kepco) and engaged with the company several times in 2021.* 
>
> *Although Kepco has committed to carbon neutrality, the company does not intend to phase out coal-fired power generation. Furthermore, Kepco is currently involved in the construction of new coal-fired power plants, which contradicts Union Investment’s coal policy. Unfortunately, Union Investment does not consider Kepco’s decarbonisation plans to be credible and therefore decided to exclude the company from our investment universe in January 2022. This exclusion also applies to all of Kepco’s subsidiaries, such as bonds issued by Korea Hydro & Nuclear Power.*

* **S﻿EB commit to deny dent to KEPCO.** 

SEB does not have any KEPCO bond holdings and would not as it generates energy from fossil fuel sources and its transition plans aren’t Paris 1.5°C aligned.  

SEB’s response relies on vaugueries like “clear goals” and “ongoing active conversion” to renewable energy sources. SEB’s coal policy updated in February 2021 is still insufficient, because it does not apply to underwriting.

> *Neither SEB’s asset management division SEB Investment Management nor the bank have any holdings of KEPCO bonds.*
>
>  *In addition, here is a statement from SEB Investment Management:
> SEB’s asset management division, SEB Investment Management, does not hold any bonds or other financial instruments issued by companies in the KEPCO group. [According to its Sustainability Policy,](https://webapp.sebgroup.com/mb/mblib.nsf/alldocsbyunid/42C98E0926AE620DC1258773002D4E4C/$FILE/Fondbolagets_Hallbarhetspolicy_feb22_eng_v2.pdf)* 
>
> *SEB Investment Management’s funds do not invest in companies which generate energy from fossil fuel sources, unless the company has clear goals and can refer to ongoing active conversion to renewable energy sources, in line with the Paris Agreement. This, among other things, also means that SEB Investment Management would refrain from investing in bonds issued by KEPCO.*

* **H﻿SBC AM commit to deny dent to KEPCO.** 

In spite of their non-committal written response to our request to deny debt to KEPCO. On a call, attended by senior executives HSBC confirmed that they won’t provide new finance, including via debt to companies involved in expansion. Including KEPCO, but even going beyond KEPCO. We welcome HSBC’s announcement and continuing dialogue with them. 

> *Through our stewardship and engagement team, we engage with companies in our portfolio on various aspects of ESG risks, opportunities and impact, on behalf of our clients.*
>
> *Our climate change policy is aimed at increasing the climate resilience of our clients’ investments, as well as contributing towards financing the transition to a net zero economy. We aim to:*
>
> *Deliver lower-carbon investment solutions that meet our clients’ investment criteria while meeting their risk and return objectives
> identify and integrate climate-related risks, opportunities and climate policy in our investment portfolios, using relevant data and analysis – including scenario analysis – to inform our investment decisions
> Engage with investee companies to better understand and support their disclosure and management of the risks and opportunities presented by climate change and climate policy. We engage directly and collaboratively, using our voting decisions to escalate issues where appropriate*
>
> *Today, HSBC Asset Management also announced its policy to phase out coal-fired power and thermal coal mining (‘thermal coal’) from its listed holdings.*
>
> *HSBC Asset Management will actively work with company boards to support the transition away from thermal coal in the EU and OECD markets by 2030, and globally by 2040.* 
>
> *Those companies who do not show credible plans to transition away from thermal coal within the timeframe will lose the support of HSBC AM, including voting against company chairs at AGMs or, ultimately, divesting.*
>
> *We are actively reviewing our policies that are critical to achieving our net zero goal. This includes a commitment to issue a refreshed and science based Energy Policy to address conventional and unconventional oil and gas, methane emissions, and potential impacts on environmentally critical areas such as the Arctic and the Amazon.*

* **E﻿urizon did not rule out denying debt to KEPCO.** 

  Whilst they currently don’t have KEPCO bond holdings, they don’t rule out future purchases because their coal policy is riddled with loopholes. 

  They must urgently adopt more robust exclusion thresholds to exclude all coal developers, there should be no criteria for developers, just a straight up exclusion. 

> *Thank you for your letter in which you urge us not to purchase any bond, including green bonds, issued by South Korea's Electric Power Corporation (KEPCO) and its power generation subsidiaries until they adopt and publicly disclose a 1.5°C-aligned energy transition plan.* 
>
> *Eurizon Capital SGR S.p.A., the asset management arm of Intesa Sanpaolo group, as a participant in the financial markets, integrates Environmental, Social and Governance (ESG) factors into its investment process and has a fiduciary duty towards its Clients, Investors and, more in general, its stakeholders that requires it to address sustainability-related issues. In that regard, Eurizon believes that issuers adopting high ESG standards and practices shall generate sustainable performance in the long term.* 
>
> *Therefore, in addition to the financial analyses on the risk - return profiles of the issuers in which the managed products are invested, our investment process relies on specific methodologies to select and monitor financial instruments aiming at integrating sustainability risks. In this regard, Eurizon's Sustainability Policy foresees specific restrictions for issuers considered "not socially responsible" that derive at least 25% of their turnover from mining or electricity production activities linked to thermal coal (so called "SRI Binding screening").*
>
> *Furthermore, as signatory of the Net Zero Asset Managers Initiative, Eurizon is committed to engage with investee companies to ensure that they adopt cleaner business models and decarbonize overtime in line with a 1.5°C-aligned transition plan.*
>
> *That said, with specific reference to KEPCO, Eurizon appreciates your detailed analysis and note that, based on our records as of 15 September 2022, Eurizon holds no bonds issued by KEPCO.*

* **B﻿NP Paribas commit to deny dent to KEPCO in active holdings, but not passive.** 

  BNP Paribas does not hold any active funds in KEPCO, nor do they plan to purchase any because they do not meet the requirements of their coal policy.

  They do however hold KEPCO within passive holdings; (minimal according to our research). 

> *Thank you for reaching out to us about KEPCO’s business strategy and transition plans. As you may be already aware, sustainability is at the heart of our business and investments strategies and so we read your letter with particular interest.*
>
> *We do not hold any positions in KEPCO in our open-ended funds, nor do we have plans to purchase any at this point, as KEPCO does not meet the requirements of our coal policy, which you will find within our Responsible Business Conduct Policy.* 
>
> *We hold relatively insignificant amounts of KEPCO within certain client mandates, where we do not have full discretion over the investments. This amounted to 5.2 million euros at market close on 22 September\*\* out of a total of approximately 500 billion euros of assets we manage, depending on market fluctuations.* 
>
> *If through your research, you have found a higher figure, it could be related to the custodial services division of our parent company.*
>
> *I encourage you to learn more about our approach to sustainable investment in our Global Sustainability Strategy and how we have embedded sustainability in our business and investment strategies in our latest Sustainability Report. We are also a signatory to the Net Zero Asset Managers initiative and we will be releasing our targets and plans by year’s end.*
>
> *We appreciate your efforts in moving the needle on the topic of climate change and the transition to a low/no carbon economy.*

* **A﻿PG commit to deny dent to KEPCO.** 

  In 2020 they sold their remaining holdings in KEPCO because of KEPCO’s expansions plans. 

> *Our answer to your question below is simple: On behalf of our clients, we do not have any holdings in KEPCO. In 2020 we sold our remaining holdings in KEPCO due to the fact that the company- despite our strong objections – continued to plan for new coal-fired power plants.*

The investors who responded on KEPCO

Meet KEPCO: South Korea’s largest energy company. It generates almost all its power from coal and gas. And in the last few years has built coal mines in Indonesia, Vietnam and the Philippines. With stories of land grabbing, polluted fishing waters and devious silencing of protestors.

You may find yourself asking, how do polluting companies like KEPCO find hundreds of billions of dollars during a climate crisis to build new coal plants? The team’s worked with top researchers to uncover that some of the biggest financiers of KEPCO’s coal expansion are:

* US pension fund for teachers, professors and charity workers TIAA
* US investment giant PIMCO, which buys bonds for most of the world’s pension funds
* UK investment company abrdn

We cannot wait for politicians to save the planet or for investors to act without pressure. We have to use our power now.

KEPCO is uniquely reliant on toxic bonds to fund its dirty coal habits. If we push some of the world's most influential investors to stop buying these bonds it will give KEPCO no choice but to speed up the transition to clean energy.

[So will you join our campaign and call on Thasunda Brown Duckett CEO of TIAA, Emmanuel Roman CEO of PIMCO and Stephen Bird, CEO of Abrdn to stop buying KEPCO bonds?](https://actions.sumofus.org/a/deny-debt-to-kepco)

If we push some of the world's most influential investors TIAA, abrdn and PIMCO to stop buying KEPCO´s bonds it will give them no choice but to speed up the transition to clean energy.

KEPCO needs bonds to keep expanding coal and gas. Investors could stop them.

Out of the largest 100 emitters – responsible for almost 75% of global greenhouse gas emissions – only 30 are listed on equity markets, **but all are dependent on bond markets for access to capital.**

Therefore fixed income investors are uniquely positioned to influence the transition to a carbon-neutral economy through their investment strategies, engagement and by raising the cost of capital for fossil fuel companies that are not on a path to transition.

T﻿he Toxic Bonds Initiative is a network of civil society organisations. We are calling on investors to: 

* Adopt coal, oil and gas phase-out policies that stop all new investments in companies expanding fossil fuel output and infrastructure. These policies must cover passive holdings and third-party assets.
* For companies expanding fossil fuel output and infrastructure, investors must deny new debt and plan to divest from existing bond holdings.
* Use their position as capital providers to engage companies in advance of the bond issuance process to inform investment strategy and decisions and to set clear expectations of companies regarding their alignment to a robust 1.5˚C climate scenario
* Plan divestment from fossil fuel companies (share and bond holdings), unless the company ceases development of new fossil fuel projects and announces a complete phase-out strategy aligned with principles of equity and a 1.5˚C timeline that is certified by globally recognised science-based professionals. 

B﻿ond investors have significant power to steer the green transition. It's time this power was exercised for good.

Every time investors buy Toxic Bonds they are helping a new coal plant, or a new oil and gas pipeline come on line. It's the fuel that drives the expansionary system - but it can be put out.

How fixed income investors can speed up the transition to a carbon neutral world

**It’s time we escalate to the top dogs: the CEOs and Directors of the biggest banks and investors who are financing Adani’s catastrophic coal expansion.** 

With the AGM around the corner Adani is counting on a day of good publicity to secure the extra cash needed for its coal expansion plans. Gautam Adani will say anything to convince the world he’s going green.

But our research reveals the urgent truth and we need your help to get it in front of investors: plans to expand and build 17 coal mines across Asia-Pacific.

**[So will you take 5 minutes to send a letter to the CEOs of Blackrock, Vanguard and PIMCO, telling them to stick by their words and get out of Adani?](https://actions.sumofus.org/a/divest-from-adani/?ak_proof=1&akid=.11638641.pkyc60&rd=1&source=fwd&t=9)** 

### More information

[](https://www.adanienterprises.com/-/media/Project/Enterprises/Investors/Investor-Downloads/Investors-Presentation/AEL-Business-Presentation.pdf)[Adani Enterprises- Business Presentation](https://www.adanienterprises.com/-/media/Project/Enterprises/Investors/Investor-Downloads/Investors-Presentation/AEL-Business-Presentation.pdf)

[](https://www.bloomberg.com/news/articles/2021-03-22/pimco-rules-out-future-investment-in-adani-ports-on-coal-link?sref=gPAG2MJ8)[Adani fined for ‘Gross environmental mismanagement’](https://www.thehindu.com/news/cities/Mangalore/ngt-imposes-52-crore-penalty-on-adani-upcl-for-environmental-pollution-in-coastal-karnataka/article65486921.ece)\
The Hindu. 02 June 2022.

[Pimco Rules Out Future Adani Ports Investment on Coal Link](https://www.bloomberg.com/news/articles/2021-03-22/pimco-rules-out-future-investment-in-adani-ports-on-coal-link?sref=gPAG2MJ8) \
Bloomberg. 22 February 2021.

[Investment Stewardship](https://corporate.vanguard.com/content/dam/corp/advocate/investment-stewardship/pdf/policies-and-reports/inv_stew_2021_annual_report.pdf) \
Vanguard. 31 December 2021.

[BlackRock opposed re-election of 800 company directors in Q3 - report](https://www.reuters.com/business/finance/blackrock-opposed-re-election-800-company-directors-q3-report-2021-10-21/) \
Reuters. 21 October 2021.

[Gautam Adani](https://twitter.com/gautam_adani/status/1401064378938519555) \
Twitter. 5 June 2021.

SumOfUs and Toxic Bonds Initiative calls on Blackrock, Vanguard and PIMCO to divest from the Adani Group's bonds and shares.

Email Banks and Investors: Say No to Adani Greenwashing

**A [new report launched today](https://s3.amazonaws.com/s3.sumofus.org/images/Toxic-Bonds-Bank_-Underwriting-Report_FINAL.pdf) by the Toxic Bonds and Bank on our Future campaigns shows banks have underwritten $2.7 trillion of fossil fuel bonds since the 2015 Paris Climate Agreement - offering critical lifeblood to fossil fuel companies. The report reveals that underwriting bonds for fossil fuel companies is a glaring loophole in banks’ net-zero targets and needs greater scrutiny.** 

Despite international climate initiatives such as the Net Zero Banking Alliance, many major banks' existing climate and fossil fuel policies and targets contain loopholes, either by excluding underwriting or only applying to new clients. This allows toxic bonds to slip through the net.

The report calls into question why banks continue the practice, given the outsized reputational risk and impact on the planet, and calls for greater scrutiny on underwriting every time a bank publishes a new policy or target.

Banks must include underwriting in addition to lending in all climate policies and financed emissions reduction targets, as well as urgently cease underwriting bonds for coal, oil and gas expansionists.

*Update 13/07/2022 upon release it was brought to our attention that an interpretation of one of the tables in the original report is incorrect. The version here is now updated.*

Read the new report on from Toxic Bonds and the Bank on our Future campaigns

How banks are breaking their Net Zero pledges to finance climate chaos

***The campaign to get Deutsche Bank to walk away***

Deutsche Bank’s withdrawal from Whitehaven’s bond issue follows a concerted public campaign by Market Forces and other community and civil society groups in Australia and Germany. After the potential bond deal was uncovered, Market Forces coordinated two hard-hitting newspaper advertisements in major media outlets, thousands of their supporters wrote to Deutsche Bank about the deal, many more sent Christmas cards directly to the bank’s CEO, and hundreds of comments were left on the bank’s social media posts.

Ahead of Deutsche Bank’s annual general meeting (AGM), they also commissioned [legal advice](https://www.marketforces.org.au/wp-content/uploads/2022/05/2022-Deutsche-Bank-Legal-Advice.pdf) confirming Deutsche Bank would breach its internal coal exclusion policy by proceeding with the Whitehaven bond deal. This followed publication of a [shareholder statement](https://agm.db.com/files/documents/2022/AGM_2022_Statements.pdf) in Deutsche Bank’s AGM papers, drawing further attention to the bank’s cosy relationship with Whitehaven.

With the pressure building, we now have confirmation Deutsche Bank is out of the bond deal, capping off the end of an almost eight-month campaign that has united activists across two continents.

***What’s next for the campaign to stop Whitehaven’s new coal mines?***

Although Deutsche Bank has ruled out Whitehaven’s bond issue, it remains exposed to the coal corporation through its debt lending. Whitehaven has signalled it will seek to refinance that loan later this year. Market Forces will be keeping a close eye on Deutsche Bank and making sure it upholds its stated commitments on climate action.

Meanwhile, the other key banks still remaining in Whitehaven’s credit syndicate are based in Australia, China and Japan. Australian banks NAB and Westpac play an important role – jointly providing over 20% of the funds in 2020 and helping to organise other banks’ participation in the deal. Market Forces and partners will be turning up the heat on NAB and Westpac this year and making sure they walk away from Whitehaven. 

[You can get more information here, and also support by contacting the banks linked to Whitehaven Coal by filling out the action form on this page](https://www.marketforces.org.au/win-deutsche-bank-abandons-whitehaven-coals-bond-issue/).

Win! Deutsche Bank abandons Whitehaven Coal’s bond issue

1. **1. Bonds are a critical source of finance for coal, oil and gas companies**

Since the Paris climate talks in 2015, $2 trillion oil and gas bonds have been issued. That’s half of the total in circulation. More than $600 billion is set to mature after 2030, according to [Greenwatch](https://twitter.com/JeffDColgan/status/1519797677030055942). Coal companies with the biggest expansion plans raise 2.5x more capital through bond issuance than through bank loans, and bonds have become the single largest source of financial support for coal in China and India, according to Sunrise Project analysis of the [Global Coal Exit List](https://www.coalexit.org/) and data from company financial statements.

Altogether, the “[Dirty 30](https://www.toxicbonds.org/toxic-bonds)” – a list – of 30 of the world's top expansionary fossil fuel companies who are using the bond market to finance new coal, oil and gas projects and includes some of the most well-known fossil fuel companies worldwide such as Exxon, TotalEnergies, Shell, BP, Chevron, Saudi Aramco, and Adani – compiled currently by the Toxic Bonds initiative, have more than $491 billion (nearly half a trillion) in total EU/USD bonds that are outstanding. This number does not include bond issuances in local currency, which would make the amount much larger!

*“As bank lending for coal has tightened, the bond market remains a safe haven for fossil fuel companies to fund expansion. Dirty energy companies are using the corporate bond market as the back door to secure large amounts of cash for expansion projects.  This has so far received too little scrutiny,” said Nick Haines, SumofUs*.

1. **2. Sustainability markets are on the rise - but so is greenwashing**

There is a growing demand from the market  for Green Bonds and Sustainability Linked Bonds (SLBs) - and bond issuers are recognising this opportunity to secure cheaper debt. The difference as highlighted by Christina Ng from IEEFA is that green bond issuers are meant to be allocating proceeds from green bonds only to green projects, thus making them project specific bonds; whereas SLBs do not have that project specific use of proceeds, and instead don’t require requires issuers have a credible targets in place. As a result, SLBs can be used to finance just about anything the company would like to. 

With that, one of the trends that we are seeing globally is an increase in greenwashing. And if this remains unchecked risks undermining the credibility of these emerging sustainable debt markets. The other trend that is that investor activism is growing, which is definitely a positive trend and needs to be intensified. Unfortunately though despite this uptick in engagement, big asset managers are still investing billions into fossil fuel companies. And indeed a A number of asset managers are actively  pushing back against adopting exclusion criteria for their portfolios, arguing that engagement is more useful to support the transition of companies towards a net zero world. Yet, almost none of these asset managers have adopted the public policies to make engagement meaningful. You can read more on this in the [Asset Manager scorecard here](https://reclaimfinance.org/site/en/2022/04/20/scorecard-which-asset-managers-are-pushing-back-on-fossil-fuel-expansion/) (Reclaim Finance).

3. **3. Challenges in engaging with the bonds market for civil society**

There are a couple of challenges with three being specifically highlighted which were:

* Timing- short window of time for engagement as there is a very small gap between the announcement of a new bond and its investment, 
* Market capacity- Information gap as the bonds market is quite opaque, and, 
* Coordination- The need for civil society to work together to coordinate their activities. 

*“The challenges of tackling bonds for fossil fuel expansion is the lack of visibility we have on the bond market”, says Pablo Brait, Market Forces*

**The Toxic Bonds initiative aims to  help fill some of this gap by sharing information and  bringing together advocates to help draw attention to the role the bond market plays in fuelling the climate crisis.**

1. **4. Campaigning Opportunities**  

There are so many potential targets and so many areas of impact. The exciting areas that could be covered are:

* Refinancing of bonds on the horizon especially for well-known companies like Adani and KEPCO. Campaigners could use maturity dates that are on the horizon for those companies ([compiled in the Toxic Bonds website](https://www.toxicbonds.org/toxic-bonds)), to engage bondholders and commit to deny debt to expansionary fossil fuel companies. 
* Bank arrangers are key pressure points. Notably, underwriting activities may be considered by banks an off-balance sheet activity, so a bank may have a climate policy which covers lending but that same policy doesn't apply necessarily to underwriting activities.
* The index providers are another target and crucial for the influence over the passively managed funds of the major asset managers. Previously, work has been done on MSCI and S&P, specifically on sustainability indexes and climate indexes.One achievement was when Adani Ports was kicked off the Dow Jones Sustainability Index. 
* Very often asset managers don't apply exclusion criteria to passive bond investments. Asset managers need to do much more to engage index providers to remove companies from indices.
* Credit rating agencies and providers of second party opinions are another key player in the market.Credit rating agencies need to include substantial risk of coal assets they evaluate.
* We need Governments to ban new fossil fuel projects and implement transition at a nation-wide level.
* We need to engage with central banks and regulators to ensure better policies settings are in place to regulate the bonds market.

*"Governments take pride in having little intervention in the market, but there are many ways for governments to tighten and give clarity on bonds e.g. with green taxonomies”, says Christina Ng, IEEFA*

1. **5. Partner with us**

Bond markets are a really important corner of the economy that continues to channel funds to fossil fuel expansionist companies, despite the climate change warnings. It is critical that civil society comes together to engage with different players and ensure all financial institutions deny debt to Toxic Bonds!

**If you would like to be a part of this network of organizations and are interested in working on the bond markets, please get in touch with us at [toxicbonds@sumofus.org](<>), and  follow us on [Twitter](https://twitter.com/toxic_bonds) or on [LinkedIn](https://www.linkedin.com/company/toxic-bonds-sumofus/)**

5 key takeaways from the Toxic Bonds - Launch Webinar

**South Korea’s majority state-owned utility, Korea Electric Power Corporation (KEPCO)1 [issued](https://www.sedaily.com/NewsVIew/263LCCL8H6) a staggering USD 8 billion in corporate bonds in the first quarter of 2022.**  This amount comes close to KEPCO’s market value of USD 11 billion and to its total bond issuance in the previous year.   

If this trend continues, KEPCO’s annual bond issuance is expected to reach USD 32.8 billion. Meanwhile, KEPCO's expected operating loss for the first quarter of 2022 is between USD 3.9 to 4.7 billion, leading to a predicted annual loss of USD 16.4 billion. The company’s actual operation loss in February 2022 reached a record high of USD 1.5 billion.  

Concerns over KEPCO's vicious cycle of bond debt facing limitations are escalating. With the South Korean government's decision to freeze the electricity rate for Q1 of 2022 amid rising inflation, KEPCO is financing most of its necessary funds to supply electricity below actual costs.   

Aside from controversies around KEPCO’s electricity pricing, KEPCO’s high dependency on fossil fuel assets and soaring fossil fuel prices are found to be the leading [causes](https://n.news.naver.com/article/003/0011133330) of exacerbating financial instabilities. **In stark contrast to the 1.5°C pathway, and at a high financial risk, KEPCO is still developing fossil fuel-based power generation facilities at home and abroad.** 

Despite South Korea being the first among the ‘big 3’ Asian coal financiers – China, South Korea, and Japan – to announce a moratorium on new public financial support for overseas coal-fired power investments in April 2021, KEPCO did not retract its plans to build the 2,000MW Jawa 9 & 10 in Indonesia and 1,200MW Vung Ang 2 in Vietnam. The same year, South Korea and KEPCO also added another 3.1GW of newly built coal power plants for operation, further regressing the country’s climate ambition. In fact, according to the recent coal plant capacity [report](https://globalenergymonitor.org/report/boom-and-bust-coal-2022/) by Global Energy Monitor (GEM) and nine other international environmental groups, South Korea was found to have the world’s [third-largest](http://world.kbs.co.kr/service/news_view.htm?lang=e&Seq_Code=169256) operating coal capacity expansion in 2021.   

**This backwards expansion of coal power plants has all been possible through debt financing.** Through purchasing corporate bonds issued by GENCOs2, which are KEPCO’s power generation subsidiaries, and private coal power project companies such as Samcheok Blue Power (the last coal power project in South Korea), domestic financial institutions [funneled](https://drive.google.com/file/d/1IK6jMMSuhwasRfiUFKGe-0UfheGyckGu/view) about USD 23 billion (KRW 25 trillion) into coal in 2020. 

What is noteworthy, though, is that the shunning of coal bonds like those of KEPCO’s, is already taking place.  As of February 2021, South Korea’s top asset management companies, accounting for [nearly 90%](https://zdnet.co.kr/view/?no=20210205140534) of the Korean bond market, committed to not invest in bonds supporting the remaining construction of the 2,100MW Samcheok Blue Power project. In December 2020, APG, a Dutch pension investment company, [sold](https://apg.nl/en/publication/apg-sells-korean-energy-giant-due-to-coal-expansion/) all its stake and bonds in KEPCO due to its coal expansion. KEPCO's subsidiaries, too, are facing [difficulties](https://news.einfomax.co.kr/news/articleView.html?idxno=4209165) in raising cash through bond issuance, due to investors’ coal divestment trends and surging raw material costs.  

**Even when KEPCO’s USD 500 million of green bonds were oversubscribed in June 2020, the world’s leading ESG investors, like Allianz SE and BlackRock INC, [opted out](https://www.toxicbonds.org/blogs/kepco-green-bond-failed-the-esg-market-test), unconvinced with KEPCO’s high coal ambition revealed in its pipeline.** Not surprisingly, a few weeks after the issuance of those green bonds, KEPCO announced its investment plans in Jawa 9 & 10 and Vung Ang 2. 

With mounting concerns both at home and abroad over its growing financial vulnerabilities and climate risks, it is critical that KEPCO and GENCOs cut their reliance on highly volatile fossil fuels.  

Unless KEPCO revamps its current portfolio, which in every perspective reveals that KEPCO is essentially a coal asset-based company, and announces an earlier coal phase-out date, its continued bond issuance will be understood as a desperation under its coal addiction. Investors may cut ties with KEPCO before the company cuts ties with fossil fuels, as the remaining investment in KEPCO will be a direct negation of the investors’ own climate efforts.  

*Notes:* 

1. *Korea Electric Power Corporation (KEPCO) is a majority [state-owned](https://home.kepco.co.kr/kepco/EN/A/htmlView/ENACHP00301.do?menuCd=EN010403) electric utility company in South Korea that also holds the country’s five major power generation companies as subsidiaries.*  
2. *KEPCO’s subsidiaries are often referred to as generation companies [GENCOs](https://home.kepco.co.kr/kepco/EN/A/htmlView/ENACHP00301.do?menuCd=EN010403) – Korea South-East Power (KOSEP), Korea Midland Power (KOMIPO), Korea Western Power (KOWEPO), Korea Southern Power (KOSPO), and Korea East-West Power (EWP). GENCOs operate most of the coal power fleet and nearly half of fossil gas plants in Korea.* 

Read more articles on KEPCO bonds’ instability and its lasting coal addiction here (please Google translate): 

1. “[KEPCO’s interlocking of electricity bills and fuel costs found nominal – soaring cost snowballs KEPCO’s deficit](http://www.seoulwire.com/news/articleView.html?idxno=457511)”, Seoul Wire, December 20, 2021 
2. “[Freezing electricity bills leaves KEPCO to issue USD 8bn in corporate bonds – raising debts to pay off debts](https://www.sedaily.com/NewsVIew/263LCCL8H6)”, The Seoul Economic Daily, March 28, 2022 
3. “[Coal exclusion policies & soaring raw material costs – bond issuance for power generation companies also face a long and winding road](https://news.einfomax.co.kr/news/articleView.html?idxno=4209165)”, Yonhap News, April 18, 2022 
4. “[A record-high deficit forecasted for KEPCO in 2022 Q1 – USD 1.5 billion (KRW 2 trillion) loss in February](https://n.news.naver.com/article/003/0011133330)”, Newsis, April 22, 2022 
5. “[Unbreakable ‘coal addiction’ shakes Korean economy](https://n.news.naver.com/article/056/0011253537),” KBS Broadcast TV, April 22, 2022 
6. “[18.2GW increase in world’s operating coal power plant capacity and South Korea ranks the world’s third-largest](https://news.kbs.co.kr/news/view.do?ncd=5449084&ref=A)”, KBS Broadcast TV, April 26, 2022

KEPCO issues USD 8bn of corporate bonds in 2022 Q1 alone, 72% of its market value 

#### *With nearly half a trillion bonds outstanding the ‘Dirty 30’, draws focus to some of the top companies using the bond market to finance coal, oil and gas expansion.* 

The Intergovernmental Panel on Climate Change (IPCC) has signaled a 'code red for humanity'. But climate change is already here. From heatwaves in India, to floods in Australia we are seeing the impacts of inaction. And it is already impacting hardest those with the fewest resources to combat it. 

The science is clear: emissions from fossil fuels are the dominant cause of global warming and climate change and to limit climate change to 1.5 degrees fossil fuel expansion cannot continue. But in spite of these warnings, the world's largest fossil fuel companies have not only continued with business as usual, but in many cases are also aggressively expanding their operations and are clearly out of sync with the landmark Paris Agreement. 

**How the bond market fuels the fire**

As bank lending, particularly for coal, has tightened, the bond market has become a safe haven for dirty fossil fuel companies to fund their expansion. 

Coal companies with the biggest expansion plans raise 2.5x more capital through bond issuance than through bank loans, and bonds have become the single largest source of financial support for coal in China and India, according to Sunrise Project analysis of the [Global Coal Exit List](https://www.coalexit.org/) and data from company financial statements.

And despite not facing the same lending pressures as coal, since the Paris climate talks in 2015, $2 trillion oil and gas bonds have been issued. That’s half of the total in circulation. More than $600 billion is set to mature after 2030, according to [Greenwatch](https://twitter.com/JeffDColgan/status/1519797677030055942). 

Every time investors buy fossil fuel debt they are helping a new coal plant, a new oil and gas pipeline come on line. It's the fuel that drives the expansionary system. It needs to be put out.

This is why the global bonds market needs to become a crucial  frontier for the climate movement. 

As a first step towards this, the initiative has revealed our list of 30 of the top corporations using the bond market to obtain cash to expand coal, oil and gas operations - despite repeated warnings from the IPCC, IEA and others that the world must urgently move away from fossil fuels. 

**Enter the Dirty 30**

The Dirty 30, compiled by the Toxic Bonds initiative, are thirty of the worst fossil fuel expansionists in the world. In some cases their bond market exposure is large (as in Total Energies which has USD/EUR bonds worth nearly $50 billion that are outstanding). In other cases, such as Whitehaven Coal, the company is only set to make their debut bond issuance this year.

In all cases the companies on the Toxic Bonds Dirty 30 list are all planning major expansion and are using the bond market to help finance these plans. 

The companies were primarily chosen based on information in the [Global Oil and Gas Exit List](https://gogel.org/) and [Global Coal Exit List](https://www.coalexit.org/) The list currently only considers the companies’ USD/EUR denominated bonds.

These companies are:

* Adani Group
* BP
* Chevron
* China Energy Investment Corp (China Energy/ CHN Energy) 
* China Huaneng Group
* CNOOC
* Coal India
* Equinor
* Exxon Mobil
* Gazprom
* Glencore
* KEPCO
* NTPC
* Peabody
* PEMEX
* Petrobras
* PetroChina
* Power Finance
* PT Perusahaan Listrik Negara (Persero) (PLN)
* PT Bumi Resources Tbk
* Qatar Energy
* Saudi Aramco
* Shandong Energy Group (YanCoal)
* Shell
* Sinopec
* State Power Investment Corp (SPIC)
* SUEK
* Total Energies
* Whitehaven
* Woodside Petroleum

Our research shows the “Dirty 30” currently have more than $491 billion — nearly half a trillion – in total EU/USD bonds that are outstanding. Non-USD or Euro denominated bonds are not currently tracked by the Toxic Bonds initiative, meaning the total amount is likely to be much higher.\
\
**Among the Dirty 30, Adani, Exxon, TotalEnergies and the Korea Electric Power Corporation (KEPCO) are noteworthy given their large expansion plans and/or reputational risks.**

Adani has over $8 billion USD/EUR bonds outstanding, and is building the largest coal mine in Australia's history. The Adani Group’s history shows that it operates as a single entity shifting money within the group as needed, and as such, any financing or investment in any Adani Group company frees up capital that could be used to fund the Carmichael mine and its associated infrastructure.

* ExxonMobil has over $41 billion in USD/EUR bonds outstanding. ExxonMobil’s short term upstream expansion plans amount to 7 billion barrels of oil equivalent (bboe), making it one of the biggest developers of new oil and gas in the world. ExxonMobil is also one of the top ten companies with the highest annual capital expenditures on oil and gas exploration. [The company’s projections](https://carbontracker.org/exxonmobil-is-planning-on-climate-failure-despite-advancing-climate-solutions/) used for its business planning show a 2050 future where fossil fuels still provide over 70% of primary energy, reflecting that Exxon’s core business model is still highly reliant on the release of CO2 into the atmosphere.
* TotalEnergies has USD/EUR bonds worth nearly $50 billion that are outstanding. Buying TotalEnergies’ new bonds was recently denounced, as the French oil and gas major’s current climate strategy does not prevent it from implementing [fossil fuel expansion plans](https://reclaimfinance.org/site/en/financial-institutions-must-stop-totalenergies-oil-and-gas-plans/): More than 70% of TotalEnergies’ capital expenditures will be dedicated to fossil fuels, including €2.6 to €3.2 billion per year for new projects.
* The Korea Electric Power Corporation, also known as KEPCO, has $2.3 billion USD/EUR bonds outstanding according to the toxic bonds list. KEPCO is reported to have already issued $8 billion USD worth of corporate bonds in Q1 2022; a figure that includes both domestic and international bonds. This colossal amount is close to the company’s total bond issuance in 2021 and three times the $2.5 billion issued in 2020. If KEPCO’s bond issuance trend continues, the amount the company raises via the bond market is expected to reach $32.8 billion this year. KEPCO is still developing [new coal-fired power plants](https://reclaimfinance.org/site/en/coal-watchlist/) in South Korea, Vietnam and Indonesia. Although the company announced a coal-power phase out by 2050, global coal phase-out should take place by 2040 .

**Every time investors buy new debt from the Dirty 30 they are helping to drill new oil wells or open new coal mines. We can no longer afford to dismiss the bond market when taking on fossil fuel expansion.**

*[View the Dirty 30 list here](https://www.toxicbonds.org/toxic-bonds)*

[](https://www.toxicbonds.org/toxic-bonds)*Notes:*

1. *GreenWatch Team: Andreas Hoepner, Matthew McQuade and Fabiola Schneider. Data collected 23 February - 23 March 2022 <https://www.greenwatch.ai/>*

Introducing The Dirty 30

Behind each company planning new oil & gas ventures, there are banks, investors and insurers without whom these projects could not be realized.



The Global Oil & Gas Exit List (GOGEL) is a public database that identifies the largest oil & gas expansionists and the companies responsible for the most controversial forms of oil & gas production. It provides the information financial institutions need to stop enabling fossil fuel expansion and begin steering towards an oil & gas exit.



GOGEL was designed to help financial institutions become responsible climate actors. It provides detailed information on 887 companies operating in the upstream and/or midstream sectors of the oil & gas industry. GOGEL will be updated each fall.



[➔ To access the data, please see here](https://gogel.org/)

GOGEL is a database of information on the largest and most controversial oil & gas companies.

Global Oil and Gas Exit List 

French oil and gas giant Total is getting set to sell a cunning plan to investors: to use Sustainability-Linked Bonds to fund its efforts to drill the Arctic.



Investors increasingly are demanding action on climate. But by 2030, 80% of Total's investments will still be directed to fossil fuels. Which is why Total came up with this plan: call the investments ‘sustainable’ - but use them to fund oil and gas expansion.



It's greenwash. But it also sets a dangerous precedent: if Total can use sustainable finance to build massive oil pipelines through East Africa and [drill the Arctic](https://totalenergies.com/media/news/press-releases/russia-total-signs-definitive-agreements-entry-arctic-lng-2) wilderness, then so too can any other company.



Total says that its Sustainability-Linked Bonds will support its climate plans. But one look at those plans shows [how hollow this claim is](https://reclaimfinance.org/site/en/2021/09/28/totalenergies-sustainable-debt-investor-trap/). What’s more, Total is not obligated to spend any of the money it raises through its sustainability bonds for green projects: it can pump it [straight into new oil and gas projects](https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/sustainability-linked-bonds-in-rapid-growth-as-more-firms-tap-esg-debt-market-65049789).



[➔ SumOfUs is calling on investors to boycott Total's Sustainability-Linked Bonds - add your voice to the call now!](https://actions.sumofus.org/a/total-greenwash?source=campaigns)

SumOfUs calls on investors to boycott Total’s Sustainability-Linked Bonds. Sustainable finance should not be used to fund fossil fuel expansion.

Total greenwash: tell investors not to buy Total's Toxic Bonds

Deutsche Bank is publicly committed to “phase out coal exposure by 2025 worldwide.”

**But in the meanwhile is helping [Australian coal miner Whitehaven](https://www.marketforces.org.au/deutsche-bank-whitehaven/) to secure debt finance for three new coal mines. When emissions from digging up and burning the coal are added over their lifetimes, these three mines would unleash almost 1.1 billion tonnes of carbon emissions, the equivalent of almost twice Australia’s annual emissions.**

Whitehaven flagged a potential move away from reliance on major banks and towards the bond market as a source of finance for its climate-wrecking coal. To access this new market for debt it needs Deutsche Bank.

[Take action now: email Deutsche Bank and call on the bank to confirm publicly that it will take no further part in arranging finance for Whitehaven, or other companies expanding the coal industry.](https://actions.sumofus.org/a/email-deutsche-bank)



[➔ Or find out more at Market Forces](https://www.marketforces.org.au/deutsche-bank-whitehaven/)

SumOfUs and Market Forces call on Deutsche Bank to take no further part in arranging finance for Whitehaven, or other companies expanding the coal industry.