Quantcast

U.S. Bank Becomes First Major Bank to Stop Financing Pipeline Construction

Popular

U.S. Bank has become the first major bank in the U.S. to formally exclude gas and oil pipelines from their project financing. This groundbreaking change to their Environmental Responsibility Policy was publicly announced at the annual shareholders meeting in Nashville in April.


In addition to no longer providing "project financing for the construction of oil or natural gas pipelines," the bank has stated that relationships with their clients in the oil and gas industries will be subject to "enhanced due diligence processes."

As recently as March 2017, U.S. Bank has renewed commitments with Energy Transfer Partners, the company constructing the Dakota Access Pipeline, and with Enbridge Energy, whose pipelines operate within Minnesota. However, advocates are hopeful that the bank's newly released policy will limit other kinds of financing relationships with these industries.

"U.S. Bank's new policy is an important step in protecting the environment and moving towards a fossil free future," said Wichahpi Otto, a volunteer with the climate justice group MN350, who travelled to Nashville for the shareholders meeting. "We applaud them for responding to the community and contributing to worldwide efforts to address climate change."

This move comes after ongoing pressure on U.S. Bank locally from MN350 and from the Minnesotans for a Fair Economy coalition, and on banks nationally from indigenous groups including Honor the Earth, the Indigenous Environmental Network and the Dakota Access resistance movement.

Beginning in 2015, a regional partnership of climate, labor and indigenous rights advocates has urged that U.S. Bank divest from fossil fuels, in particular from Enbridge Energy, and move its financing into the clean energy economy. Local actions have included letter-writing, account closures and social media campaigns. In response, in May 2016 the bank made changes to their Environmental Policy restricting lending to coal.

"We applaud this progressive decision from U.S. Bank," said Tara Houska, national campaigns director of Honor the Earth. "A strong message is being sent to the fossil fuel industry: We are consumers, we have agency and the right to know how our money is being invested. Move to a green economy and a future that does not profit off the destruction of Mother Earth and our communities."

A national and international campaign pressuring banks to divest has been highly successful, pulling nearly $4.5 billion from financiers, and a newly launched coalition effort called Mazaska Talks has expanded this effort.

Organizations and community members say they are eager to see how U.S. Bank's unprecedented stance can encourage movement in financing from fossil fuels to a clean energy economy.

"Confronting the climate crisis requires boldness, urgency and innovation," said Dr. Emily Swanson, a member of MN350. "While there is more to be done, we are hopeful U.S. Bank can continue to act as an industry leader and as an ally for creating a more sustainable economy."

EcoWatch Daily Newsletter

By George Citroner

The Office of Disease Prevention and Health Promotion and the World Health Organization currently recommend either 150 minutes of moderate intensity exercise (walking, gardening, doing household chores) or 75 minutes of vigorous aerobic exercise (running, cycling, swimming) every week.

But there's little research looking at the benefits, if any, of exercising less than the 75 minute minimum.

Read More Show Less
Mary Daly, president of the San Francisco Federal Reserve Bank, poses for a photograph. Nick Otto / Washington Post / Getty Images

It seems the reality of the climate crisis is too much for the Federal Reserve to ignore anymore.

Read More Show Less
Sponsored

Passengers trying to reach Berlin's Tegel Airport on Sunday were hit with delays after police blocked roads and enacted tighter security controls in response to a climate protest.

Read More Show Less
A military police officer in Charlotte, North Carolina, pets Rosco, a post-traumatic stress disorder companion animal certified to accompany him, on Jan. 11, 2014. North Carolina National Guard

For 21 years, Doug Distaso served his country in the United States Air Force.

He commanded joint aviation, maintenance, and support personnel globally and served as a primary legislative affairs lead for two U.S. Special Operations Command leaders.

But after an Air Force plane accident left him with a traumatic brain injury, post-traumatic stress disorder (PTSD), and chronic pain, Distaso was placed on more than a dozen prescription medications by doctors at the U.S. Department of Veterans Affairs (VA).

Read More Show Less
(L) Selma Three Stone Engagement Ring. (R) The Greener Diamond Farm Project. MiaDonna

By Bailey Hopp

If you had to choose a diamond for your engagement ring from below or above the ground, which would you pick … and why would you pick it? This is the main question consumers are facing when picking out their diamond engagement ring today. With a dramatic increase in demand for conflict-free lab-grown diamonds, the diamond industry is shifting right before our eyes.

Read More Show Less
Sponsored
Preliminary tests of the bubble barrier have shown it to be capable of ushering 80 percent of the canal's plastic waste to its banks. The Great Bubble Barrier / YouTube screenshot

The scourge of plastic waste that washes up on once-pristine beaches and finds its way into the middle of the ocean often starts on land, is dumped in rivers and canals, and gets carried out to sea. At the current rate, marine plastic is predicted to outweigh all the fish in the seas by 2050, according to Silicon Canals.

Read More Show Less
Man stands on stage at Fort Leonard Wood in the U.S. Brett Sayles / Pexels

Wilson "Woody" Powell served in the Air Force during the Korean war. But in the decades since, he's become staunchly anti-war.

Read More Show Less
Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez at a rally in Council Bluffs, Iowa on Nov. 8. Matt Johnson / CC BY 2.0

By Julia Conley

Joined by Rep. Alexandria Ocasio-Cortez Friday night, Sen. Bernie Sanders held the largest rally of any 2020 Democratic presidential candidate to date in Iowa, drawing more than 2,400 people to Iowa Western Community College in Council Bluffs.

Read More Show Less