Saudi Aramco IPO: climate change fears cause banks to miss out on millions in fees

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Banks looking to cash in on the $1.7 trillion listing of Saudi Aramco will miss out on millions of dollars of fees after concerns about climate change and a high valuation led to weak demand for the oil giant’s shares. “They were misled by their own greed to think that in an era of acute concern over climate change they could still make out like bandits from this deal while ignoring concerns about the Saudi government’s human rights record and its goals to expand oil and gas production.” It was announced last week that Aramco’s shares would only be formally marketed in Saudi Arabia and allied Gulf states, and not in America and Europe as had been planned. Chase, Citi and others would do well to re-evaluate their substantial backing of fossil fuels in light of the market’s clear scepticism that oil demand will continue to grow.” Johan Frijns, director of BankTrack, said: “Just two months after the launch of the Principles for Responsible Banking, prominent signatory banks such as Citi and Credit Suisse have no issues with getting involved in this IPO, this despite Saudi Arabia’s horrendous human rights record and the immense climate impact that will result from an expansion of oil production by Aramco. “These banks claim to be concerned about climate change and human rights, yet their involvement in the Aramco IPO makes it grimly clear that their heads are stuck firmly in the sand.” Catherine Collentine, associate director of the Sierra Club’s Beyond Dirty Fuels campaign said: “Big banks can’t keep claiming to care about climate action as long as they remain open to making massive investments in fossil fuels.