Know about KEPCO

#DenyDebt To KEPCO

Kepco

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

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

*The investors who ghosted Toxic Bonds when they were asked to rule out financing future KEPCO bonds.* 

Over the last couple of months, letters were sent by members of the Toxic Bonds initiative to 71 major investors urging them not to buy bonds issued by  KEPCO, South Korea’s largest utility company, until it adopts a 1.5°C-aligned energy transition plan.

Although we received encouraging responses from some -  58 of them failed to reply.

Why not rule out buying  bonds from a company whose green bonds have been[ described by analysts as“tokenism”](https://www.google.com/url?q=https://ieefa.org/articles/poor-investment-choices-and-corporate-governance-continue-cloud-kepcos-outlooks-and-green&sa=D&source=docs&ust=1666778480434335&usg=AOvVaw0wFfnfQ3w47qfi6S8b39iJ) and whose failure to plan for the energy transition will not only harm the client but the Korean public who will ultimately foot the bill. 

KEPCO is currently going through the worst financial crisis in its history, reporting its highest operating loss of 7.8 trillion won (USD 6 billion) in the first quarter of this year, which has since grown to US$12 billion as of 1H 2022. This loss mostly comes from the company’s over-reliance on coal and gas, with over 60 percent of its electricity generation capacity coming from fossil fuels.
It is forecasted that KEPCO will experience a growing deficit this winter, with soaring energy demand and fuel prices.

Questions remain as to the buyers and the price that these soon-to-be stranded assets could fetch, while KEPCO’s capability to decarbonize remains uncertain.

See here for the investors who did respond.

**KEPCO is a climate laggard, still heavily reliant on fossil fuels**
South Korea announced a moratorium on new public financing of overseas coal-fired power projects last year. Yet, KEPCO pursued coal projects in Indonesia and Vietnam, which were approved only weeks after issuing a $500 million green bond in 2020. 

With KEPCO’s domination of South Korea’s energy market and its overuse of fossil fuels, South Korea now has the second-highest coal power emissions per capita in the world. Meanwhile, KEPCO’s energy transition plan still falls far behind global standards, according to the Climate Action 100+ investor group’s assessment. 

For example, the power company does not have any decarbonization strategy to viably meet its long and medium-term greenhouse gas reduction targets. Instead, KEPCO has supported a prolonged role of fossil fuels, with its subsidiary Southern Power even opposing a coal phase-out by 2050.

Moreover, KEPCO has an ongoing track record of using its green bond proceeds towards projects with no clear positive impacts on the energy transition. Over 40 percent of the 5.2 trillion won (USD 6.8 billion) green bonds that KEPCO and its subsidiaries issued this past year also have no meaningful impact on emission reduction. In fact, 430 billion won (USD 327 million) was issued toward the construction of new LNG plants, which would hinder South Korea’s carbon neutrality through carbon lock-in.

According to a [new report by IEEFA](https://ieefa.org/resources/kepcos-clean-energy-transition-hangs-balance) uncovers KEPCO’s green bond issuances for what they are in reality; “To this date, KEPCO’s negligible renewable generation assets and questionable future generation mix suggest that its green bond issuances were merely tokenism.”

**KEPCO’s high exposure to fossil fuels is a massive financial risk**
While fossil fuel prices have continued to skyrocket, renewable power generation costs have steadily decreased, becoming the cheapest source of power. But KEPCO sources most of its energy from imported coal and gas, exposing it to price volatility. In fact, 90 percent of KEPCO’s electricity generation cost hike during the past year came from coal and gas.

Globally, governments are imposing higher carbon taxes and environmental costs, and fossil fuel companies are facing countless litigations. KEPCO’s continued pursuit of fossil fuels against global trends, especially coal, is causing the company huge losses. Recently, KEPCO lost in a landmark case in Australia, where the High Court stopped the company’s Bylong coal project from moving forward, costing the company over 800 billion won (USD 615 million).

Considering KEPCO’s plunging profitability, S&P recently downgraded the company’s stand-alone credit rating to a sub-investment grade. While its long-term credit rate remains at AA, based on the assumption of governmental support, this does not correctly reflect KEPCO’s risk profile. Recently, both the Prime Minister and Minister of Economy and Finance publicly criticized KEPCO’s lax financial management and signalled that reforms in public corporations will be needed.

There are clear precedents in bond markets of the financial risks associated with holding bonds that lose implicit government support, generating substantial losses for bond holders.

We expect KEPCO to keep bleeding losses as the cost and risk of fossil fuels continue to rise across the globe. The Dutch pension investor APG and Norway’s sovereign pension fund GPFG have even dropped KEPCO due to its fossil fuel dependency and many of its major shareholders are already criticizing KEPCO’s lack of climate action. BlackRock, LGIM, and the Church of England have publicly opposed the company’s new overseas coal projects.

**It’s about time we heard from the following investors on their commitments to rule out buying KEPCO’s bonds:** 
*Aegon NVAIA Investment Management HK Ltd
AllianceBernstein LP
Amundi
AXA Investment Managers
BANCO SANTANDER SA
Banque Degroof Petercam SA 
Barclays
BlackRock
BNY Mellon - Insight Investment
Brinker Capital LLC
Canadian Imperial Bank of Commerce*\
*Citi
Country Insurance & Financial Serv
Credit Suisse Group AG
Deutsche Bank AG
Doubleline Capital LP
Equitable Holdings Inc
Fidelity International
Fisch Asset Management AG
Generali Investments
Hartford Financial Services Group\
Horizons ETFs Management Canada In
Insurance Co of the West
Invesco
JP Morgan Asset Management
Kiwoom Investment Asset Management
Korea Investment Management Co Ltd 
LGIM
Loomis Sayles & Co
M&G Investments
Mediolanum International Funds Ltd
MetLife Inc
Morgan Stanley
New York Life Insurance Co
Nordea AM
Nuveen (TIAA)
Ohio National Life Group
Ostrum Asset Management
Pimco
Principal Financial Group Inc
Prudential Financial (US)
RiverNorth Capital Management LLC
Royal Bank of Canada
Schroders
SIF Swiss Investment Funds SA
Standard Chartered
State Street Corp 
Sumitomo Mitsui Trust AM
Temasek Holdings Pte Ltd* 
*TIAA
Transamerica Investment Services L
Truston Asset Management/Korea
UBS AG
Van Eck Associates Corp
Vanguard Group Inc/The
Western & Southern Financial Group
WisdomTree Investments Inc*

The investors who ghosted the Toxic Bonds coalition on KEPCO

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

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

**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

**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

What does an airport in Mumbai and a coal mine in Australia have in common?



Both are owned by coal baron Gautam Adani and right now he’s trying to issue a massive $1bn bond for his airport. An airport may seem harmless but if he secures this cash it could free up his finances to finish the reef-destroying Carmichael coal mine.



That is, unless you can tell investors like Blackrock to walk away from the deal. And if Blackrock walks away other investors will follow.



People power has already prevented Adani from securing any external financing for his notorious Carmichael coal mine; over 100 companies have ruled out financing or working on the project.

This has forced Adani to transfer billions from other parts of his company to finish the mine. But Adani is getting close and with a cash injection from one of his other subsidiaries, he could start shipping coal over the Great Barrier Reef in a matter of weeks.



This is the first time Adani Enterprises have issued their bonds in US dollars, which means it’s a critical moment for Gautam Adani. Imagine the incredible impact it will have if you and thousands of others force their biggest investor, Blackrock, to wash their hands of Adani.



[➔ SumOfUs is calling on investors to boycott Adani's bonds and say no to coal- add your voice to the call now!](https://actions.sumofus.org/a/adani-bonds-for-coal)

Coal baron Gautam Adani is trying to issue a massive $1bn bond for his airport. The money raised will free up his finances to finish the reef-destroying Carmichael coal mine.

SumOfUs calls on Blackrock to boycott Adani bonds

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.