Amundi holding the bond in its Amundi Planet Emerging Green One Fund said that it had learned in the week about the SBI given financing the Carmichael thermal coalpit in Australia.
Amundi has cautioned the State Bank of India that it will eject one of the lender’s green bonds from leading funds if this helps finance a coal mine in Australia which met violent opposition from environmental groups. Amundi holding the bond in its Amundi Planet Emerging Green One Fund said that it had learned this week about the SBI given financing for the Carmichael thermal coal mine in Australia. Carmichael has pinched strong antagonism from climate supporters since potential carbon releases will be produced by the mine at the time of all other countries exiting coal and trying to help fight against global warming.
Due to the pressure from depositors, several banks and insurers broke their ties from the project with one being Lloyd’s Insurer Apollo. The asset manager had told the bank to voice its concern to the bank along with a letter to the organization on Thursday said by Amundi’s Jean Jacques Barberis, Director of the Institutional and Corporate Clients division & ESG.
The Amundi fund is one of the largest aimed at green bonds in the developing markets. The major work of this is that it looks to invest in bonds that help in funding environmentally friendly projects but also goes through the problems to make sure its other activities are lucid. Barberis said that they consider SBI should not finance this project. In the end, it’s their decision and if the decision is made, they will immediately disinvest.
He also added that funding the mine would be in “total contradiction” to the SBI actions funded over its green bond. “We have engaged SBI, asking them not to participate (in the loan) and now we are waiting for their answers. “When contacted by Reuters SBI wasn’t available to remark directly. The Environmental Finance reported the news earlier.