28 November 2020
Amid a growing public backlash, one of the State Bank of India’s (SBI) investors, French giant Amundi, has announced that it will sell off its SBI green bonds if the bank’s executives grant a A$1bn loan to Adani’s Carmichael coal mine.
“We consider SBI should not finance this project. It’s their decision, ultimately, but we’ve been extremely clear on the fact that, if they decide to do it, we would immediately disinvest,” said Director of the Institutional Corporate Clients division & ESG, Jean Jacques Barberis
The move from Amundi, Europe’s largest asset manager, demonstrates that some financial institutions understand the serious reputational risks associated with supporting a new thermal coal project like Adani’s mega-mine, especially in the midst of a global pandemic and intensifying climate disasters.
Some analysts believe Adani’s coal project will struggle to ever make a profit, with any loan to the Carmichael mine carrying significant financial risks. The lack of economic case for the loan combined with the scale of the destruction the project is causing, means that SBI’s global reputation, and that of its investors and business partners is at grave risk if the loan goes ahead.
With SBI’s board due to announce their decision any day now, it is a critical time to apply pressure at every angle possible. Tell SBI’s shareholders and investment partners that they should join Amundi and speak out against any funding for Adani.
An in-depth analysis of the funders of State Bank of India is available from the Anthropocene Fixed Income Institute.
Tell SBI’s shareholders and investment partners to speak out and stop the loan.