Home > SBI’s investors must stop bank from throwing money away on Adani coal

SBI’s investors must stop bank from throwing money away on Adani coal

25 November 2020

One week after Indian media reported the State Bank of India (SBI) is considering lending A$1 billion of Indian taxpayers’ money to Adani’s Carmichael coal project, Market Forces has received information that the decision will be made this week.

Considering the huge reputational and financial risks inherent in the Carmichael project, SBI’s shareholders and investment partners must use this critical window of time to convince the bank to reject any association with Adani’s controversial mega-mine.

Fill out the form to contact SBI’s shareholders and investment partners now to let them know that they must stop the State Bank of India funding Adani’s mega-mine.

Some of SBI’s shareholders, including Deutsche Bank, Credit Suisse and HSBC have explicitly ruled out supporting Adani’s coal project. However, if SBI provides $1 billion to Adani, as SBI shareholders they will be breaking that commitment.

SBI relies on its shareholders and investment partners both financially and for legitimacy. If these companies publicly condemn funding Adani coal, SBI’s decision-makers will be faced with the choice; fund the world’s most controversial and dangerous coal mine or maintain its relationships with shareholders and partners.

Since reports of the loan surfaced, thousands of people snapped into action, rallying at SBI offices and Indian high commissions across Australia and the globe, including New Zealand, Fiji, UK USA and India. If we’re going to convince SBI to block the loan, it also needs to hear from shareholders and partners that are concerned about the environmental and economic risks linked to Adani’s climate-wrecking mine.

Read more about the news and contact SBI directly here.

Take action

Tell SBI’s shareholders and investment partners to speak out and stop the loan.

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Email to State Bank of India investors (Credit Suisse, Deutsche Bank, Credit Agricole, JP Morgan, Mirae Asset Daewoo, Caise de Depot Quebec, State Street, CalPERS, TIAA, Nuveen, Athene, Jupiter Asset Management and Legal & General)
Subject (you can edit this)
Your message to State Bank of India shareholders (your name will automatically be added at the bottom)
I am very concerned that your company is at risk of becoming exposed to the controversial Adani Carmichael mine through your investment in the State Bank of India (SBI). Recent reports indicate SBI is considering a US$650 million loan to Adani’s coal project in Australia, with a decision due very soon. If the loan goes ahead, as an investor in SBI, you will become exposed to one of the most destructive, controversial and financially marginal projects on Earth. The Carmichael thermal coal mine could become the biggest in Australia, and open up an entire new thermal coal basin as the world attempts to mitigate climate change. This obviously carries significant reputational and financial risks. I am writing to request that you make a statement today, calling on SBI’s Board and Executive Committee to disapprove this loan. At a time when India is planning to phase out thermal coal imports, and with renewable energy already outperforming coal economically, there is no financial or economic case for SBI to fund Adani’s coal mine. The Carmichael project is the object of years-long international controversy and resistance. It would increase shipping and industrial activity in the already stressed Great Barrier Reef World Heritage Area. The traditional owners of the land on which the mine would be dug, the Wangan and Jagalingou, continue to oppose the project. Critically, the world is on the brink of triggering runaway climate change. SBI’s funding of the Adani Carmichael project would make things even worse, opening up an entirely new thermal coal basin when the need to replace coal with clean energy has never been greater. Over 85 companies have ruled out involvement in the project and no private banks are willing to fund it. Due to Carmichael’s negative impact on the climate and lack of economic merit, any company associated with the project will be held accountable by the global community and will see its reputation profoundly damaged. If SBI makes the wrong decision, this reputation damage could extend to the bank’s globally-significant investors. As one of these investors, your company has an urgent opportunity to be a positive influence, directing SBI away from exposing itself and its investors to the disastrous Adani Carmichael coal mine. Recently Amundi made it clear to SBI that it will divest its SBI green bonds if SBI loans to Adani Carmichael. This is an example of the positive engagement I seek. SBI and India’s banking system in general is already under strain due to a large number of non-performing assets. There is no justification for a loan to a marginal thermal coal project in the midst of the climate crisis and a transition to renewable energy. Please make the case to SBI now. Yours sincerely,
Email to State Bank of India associated groups (International Finance Corp, German Development Bank, European Investment Bank, HSBC and MUFG)
Subject (you can edit this)
Your message to State Bank of India associated groups (your name will automatically be added at the bottom)
I am very concerned that your company is at risk of being connected to the controversial Adani Carmichael mine through your business relationships with the State Bank of India (SBI). Recent reports indicate SBI is considering a US$650 million loan to Adani’s coal project in Australia, with a decision very soon. If the loan goes ahead, it places in grave jeopardy the credibility of sustainable financing programs in which you are taking part. If SBI, a bank willing to finance the opening up of a new thermal coal basin as the world desperately moves to avert runaway climate change, can be a part of sustainable investment programs, it would seriously sully their name. It would also implicate your company in this project, exposing you to the myriad reputational risks that are attached to Adani’s Carmichael project. I am writing to request that you make a statement today, calling on SBI’s Board and Executive Committee to disapprove this loan. At a time when India is planning to phase out thermal coal imports, and with renewable energy already outperforming coal economically, we know that there is no financial or economic grounds for SBI to fund Adani’s coal mine. The Carmichael project is the object of years-long international controversy and resistance. It would increase shipping and industrial activity in the already stressed Great Barrier Reef World Heritage Area. The traditional owners of the land on which the mine would be dug, the Wangan and Jagalingou, continue to oppose the project. Over 85 companies have ruled out working on the project and no private banks are willing to fund it. Due to Carmichael’s negative impact on the climate and its lack of economic merit, any company associated with the project will be held accountable by the global community and will see its reputation profoundly damaged. Many financial institutions have worked hard to build trust and credibility in sustainable financing. The prospect of SBI lending to Adani in order to open up a new thermal coal basin in the midst of a climate crisis will threaten the reputation of every institution in this space. Recently Amundi made it clear to SBI that it will divest its SBI green bonds if SBI loans to Adani Carmichael. This is an example of the positive engagement I seek. Please take the very next available opportunity to urge SBI to not finance the Carmichael mine. Yours sincerely,
Of course I want to get updates about this campaign from Market Forces!
- Of course I want to get updates about this campaign from Market Forces!