Bankrolling the climate crisis: Which? reveals the high-street banks among the world’s biggest fossil fuel financiers

Some of the UK's biggest banks are financing the fossil fuel industry to the tune of tens of billions of pounds and some are even going backwards on their environmental policies, according to new Which? analysis of 16 current account providers.

Last year marked the first time since 2021 that the world's banks collectively increased their fossil fuel financing, channelling $869 billion (£646.33bn) into the hands of polluting firms. Many consumers are unaware that some banks have back-pedalled on their climate commitments - and may be investing their hard-earned cash in polluting industries.

Progress is undermined by a largely voluntary approach, leading to inconsistent reporting, limited transparency and no repercussions when banks move the goal posts or abandon promises.

To establish which banks are leading the way - and which are falling short - Which? examined the environmental policies of 16 current account providers in the UK with help from two non-governmental research organisations, Reclaim Finance and Global Canopy.

Which? researchers considered whether banks have transparent climate reporting, strong environmental commitments, credible targets and use of shared standards such as the Partnership for Carbon Accounting Financials (PCAF) and Science-Based Targets Initiative (SBTi).

Just two banks - the Co-operative Bank and Triodos Bank -  impressed enough to be awarded Which?'s Eco Provider endorsement. Both have no exposure to fossil fuels in their banking activities, and have set themselves high ethical standards.

The Co-operative Bank refuses to fund 'the unsustainable harvest of natural resources' including timber, fish and palm oil, and uses shared standards (PCAF) to measure and disclose emissions. It also has its climate data independently verified.

Uniquely, Triodos publishes its entire loan portfolio online, meaning customers can see exactly where their money is being spent. It focuses on renewable energy, and has one of the highest scores on preventing deforestation among the banks Which? examined. It also has clear 2030 and 2035 targets, validated by the SBTi.

Seven banks - including major high-street names - were found to contribute significantly to the financing of fossil fuels. These included Barclays, Chase, Danske Bank, HSBC,  Lloyds, NatWest and Santander.

According to Which?'s results, standing out as the worst offender is Chase. It is the world's leading financier of fossil fuels, investing a whopping $53.5 billion (£39.79bn) in 2024 alone - an increase of $15 billion (£11.16bn) on 2023, according to figures from the Banking on Climate Chaos report. It had the lowest climate policy score of any of the polluting banks Which? examined, scoring just 10 per cent.

Its coal, oil and gas policies open the door to firms actively expanding operations. It has even moved backwards when it comes to agricultural commodities, replacing formerly strong deforestation requirements for companies in soy, timber, pulp and paper industries with much weaker conditions. Despite this, its US parent company JPMorgan Chase claims to be ‘leading financier of diversified energy sources', and has set a $1 trillion (£743.72 billion) clean energy target for 2030.

Next is Santander, which received a climate policy score of just 28 per cent. Its policies allow it to support firms developing new fossil fuel projects, and it also lacks key protections for palm oil, soy, beef and leather. Which? researchers found it publishes less data than other big banks, and its last report relied on data from 2023. Worryingly, this year it also added new exceptions to its 2030 coal targets and eased corporate finance restrictions of oil and coal firms. Altogether it contributed $17.3 billion (£12.87bn) to the fossil fuel industry in 2024.

It was a similar picture with HSBC (including First Direct), which invested $16.2 billion (£12bn) in fossil fuels last year, and received a climate policy score of 29 per cent. Despite publicly made commitments, it increased its fossil fuel funding by $4.2 billion (£3.6bn) in 2024, and its coal policy is littered with exemptions - for example clients generating more than 40 per cent of their revenue from thermal coal are only blocked in the EU and countries in the Organisation for Economic Co-operation and Development (OECD).

Barclays invested $35.4 billion (£26.34bn) in the fossil fuel industry last year - a startling $12.6 billion (£9.36bn) increase on the year prior. It is the only European bank in Banking on Climate Chaos's ‘dirty dozen' top fossil fuel financiers globally, and only opts to bar clients that generate over 30 per cent of their revenue from thermal coal mining or power, and some coal developers. Its approach to financing oil and gas is also weak - for example, it only restricts fracking infrastructure in the UK and Europe, where it is largely banned anyway. It received a 35 per cent climate policy score.

Lloyds (including Halifax and Bank of Scotland), NatWest (including Royal Bank of Scotland) and Danske are less involved in fossil fuels than their peers - but nonetheless contributed billions of pounds of financing to the industry in 2024.

Lloyds cut its fossil fuel financing last year, down by $673 million (£500.68m) to a total $1.6 billion (£1.19bn) - though its oil and gas expansion finance rose by $572 million (£425.48bn). It had relatively solid restrictions for coal, and requirements to protect natural habitats for all the commodities Which? assesses, receiving a climate policy score of 45 per cent.

NatWest scored 46 per cent. It is relatively transparent in its reporting and has strong policies on deforestation, but it increased its fossil fuel financing by $615 million (£457.32m) year on year, to $2.7 billion (£2bn).

Danske Bank meanwhile committed far less fossil fuel financing than other big banks  - $1.3 billion (£966.77m) in 2024. While it has weak commitments related to the transportation, storage, and processing of oil and gas,its fossil fuel policies are far stronger than its peers- for example it excludes firms that derive more than 5 per cent of combined revenues from coal and/or peat fired power generation and heating. It achieved a climate policy score of 47 per cent.

The remaining banks Which? examined -  Allied Irish Bank, Bank of Ireland, Metro Bank, Monzo, Nationwide, Starling Bank and TSB - appeared to be on the right track, with either limited or no exposure to the fossil fuel industries. However, they fell short of Which? Eco Provider status, with their policies, transparency or targets having room for improvement.

Monzo, for example, does not provide project or corporate financing and doesn't invest on behalf of its customers - but beyond an overarching goal to be net zero by 2030 it doesn't have policies and targets for the activities Which? assessed. Nationwide meanwhile was also close to Eco Provider status, but Virgin Money, which it owns, does have some low exposure to oil and gas field services, accounting for around 1 per cent of its business lending. 

Sam Richardson, Deputy Editor of Which? Money, said:

“Many consumers want to make sustainable choices, but a lack of accountability and transparency in the banking sector can make it hard to understand where customers' money is really going. Worryingly, our latest research has shown that far from making progress in this area, many major banks are instead choosing to invest ever larger sums into environmentally damaging industries.

“By choosing a Which? Eco Provider, consumers can be confident that their bank is an industry leader, with zero exposure to the likes of coal, oil or gas in their banking activities.” 

-ENDS-

Notes to editors 

-Which? examined the policies of 16 current account providers in the UK with help from two non-governmental campaigning and research organisations, Reclaim Finance and Global Canopy.

- Reclaim Finance analysed coal, oil and gas policies, including unconventional sectors such as the Arctic, fracking, tar sands and seabed drilling below 1,500 metres.

-Global Canopy assessed policies for seven agricultural commodities: palm oil, soy, beef and leather, timber, pulp and paper, cocoa, coffee and rubber – the expansion  of which causes more than 70% of tropical deforestation.

-Which? wants all banks to have detailed public policies to future-proof them against harmful financing. It also rewarded transparent climate reporting, strong commitments, credible targets and use of shared standards such as the Partnership for Carbon Accounting Financials (PCAF) and Science-Based Targets Initiative (SBTi).

- Dollar to GBP conversions correct as of 30th September 2025.

- Listen to the Which? Money podcast episode here and for more on the Which? Eco Provider assessment of current account providers visit www.which.co.uk/eco-banks-2025 (live from Friday 3rd).

Notes: a weighting was applied to reach Which?'s  final climate policy score: fossil fuels (50%) and financing (10%), deforestation (20%), transparency (10%) and targets to reduce financed emissions (10%). Fossil fuel financing figures are from the Banking on Climate Chaos report

Rights of reply

A spokesperson for AIB said: “Greening our business is one of AIB's three strategic priorities. Sustainability is at the heart of everything we do. AIB is fast-tracking on our transition to decarbonisation, by reducing our own carbon footprint, by providing quality advice to our customers, by supporting green homes and businesses, and financing large-scale infrastructure like renewable energy projects in Ireland, the UK and internationally. AIB's €30bn Climate Action Fund is actively supporting our customers with €19.1bn of green and transition finance deployed since the fund launched in 2019, including €2.5bn in the first six months of 2025, representing 36% of all new lending in the period.”

A spokesperson for Barclays said: “Barclays is committed to its ambition to be a net zero bank by 2050 by working with our clients on their transition, financing clients' transition and scaling climate tech. Many of the economies we serve still depend on conventional energy for reliable and affordable power as they transition to renewables. Barclays is providing the finance to meet current energy needs while financing the scaling of clean energy, delivering against our target to facilitate $1trn of Sustainable and Transition Finance by 2030.”

A spokesperson for JPMC (parent company of Chase) said: "We are a leading global financier of diversified energy sources to power the global economy, including providing clean energy financing with a target of $1 trillion for climate initiatives and sustainable resource management by the end of 2030."

A spokesperson for The Co-operative Bank/Coventry BS said: “We're proud to have been recognised by Which? as an Eco Provider for the third year in a row. This recognition reflects our refusal to fund fossil fuels for over 30 years and the action we're taking to help protect the planet for future generations”.

A spokesperson for Santander said: “As a global financial institution, Santander understands the role we play in supporting clients in their transition, fostering inclusive and economic growth for communities and businesses. Santander is supporting companies in their transition to a low-carbon economy and has been financing the build-out of renewable energy capacity for decades.”

A spokesperson for Nationwide/Virgin Money said: “Environmental and climate consciousness are core to Nationwide's strategy and align to our mutual purpose for the good of our communities and wider society. Our acquisition of Virgin Money on 1 October 2024 has broadened our product range to include Virgin Money's business banking services. This means we can provide lending to UK businesses; predominantly small and medium sized enterprises (SMEs). We are exploring how we bring the benefits of business banking to more customers across the Group over time, but our ambition to minimise our environmental impact will not change. We have internal controls and procedures, such as our sensitive sector policy, and are focussed on reducing emissions from our highest emitting business sectors. We do not have direct exposure to businesses generating revenue directly from oil and gas extraction. Indirectly, only around 1% of our business lending is to businesses who provide field services to the oil and gas industry, compared to around 4% to companies enabling the energy transition.”

Roger Hattam, director of retail banking at Triodos Bank UK, said: “Given the worrying retreat on environmental and ethical commitments in recent months, this analysis is a timely reminder that where you bank matters. In our 30th anniversary year, the recognition of our sustained leadership should help anyone looking to take action and join an eco-friendly bank. At Triodos we only invest in and lend to organisations that are delivering positive change for people and planet."

A spokesperson for TSB said: “As a standalone, UK retail bank, customers can take confidence in TSB's robust, internationally recognised commitments on environmental impact. We are not involved with the environmentally harmful practices that Which? is investigating.”

Bank of Ireland, Danske Bank, HSBC, Lloyds, Metro Bank, Monzo, NatWest and Starling declined to comment.