The bank, one of the largest financial institution in the US, is ending project finance for new fossil fuels pipelines and coal facilities.
It appears to be the first US bank to do so. The move was announced at the bank’s annual shareholders meeting and goes beyond last year’s environmental policy to “reduce” fossil fuels lending.
U.S. Bancorp will honor existing commitments, including to Energy Transfer Partners, the construction company behind the Dakota Access Pipeline. U.S. Bancorp said clients with environmentally sensitive assets in oil and gas or forestry would get “enhanced due diligence.”
Other banks, like the Industrial and Commercial Bank of China, are also implementing environmental and climate risk underwriting.