Publication / 01 Feb 2011

RBS: Our Financing of the Energy Sector in 2011

RBS worked with Trucost to carry out an analysis of the generation mix of the energy companies they lend to and their greenhouse gas emissions.

This briefing provides enhanced and updated information on RBS’s lending to the energy sector up to the end of 2011, and follows on from RBS’s 2010 report on their energy sector financing. The original aim was to provide additional information on RBS’s energy clients’ operations in the context of sustainable development.

Across the whole of RBS, approximately 3% of general lending is committed to the oil and gas and power sectors combined. Of this, 1.8% is to the oil and gas sector and 1.2% is to the power sector, which uses a mix of gas, nuclear, coal, oil and renewables. Over the last three years, due to changes in RBS’s business, lending to the energy sector has dropped by almost half (20% in the last year) based on committed exposures at the end of each year.

RBS have loaned more than any other bank to renewable energy projects in the UK in 2011 and more finance to wind power projects than any other type of energy project. In the UK, over two thirds of RBS energy project finance went to renewables. RBS estimates its top 25 power clients and top 25 oil & gas clients are less carbon intensive than the industry average. RBS’s largest lending exposures are generally to energy companies with lower carbon intensity than their peers.

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