• All four major banks highlighted in the study have agreed to reach their net zero goals by 2050.
• An exception is NatWest, which, unlike its peers, invested more money in green businesses than in fossil fuels.
• Reportedly, Barclays and HSBC lobbied the UK government against climate policies.

The UK’s biggest banks are largely financing fossil fuel companies despite making public net zero commitments for 2050, a new report published by climate think tank InfluenceMap notes.

The report comes on the heels of another study published earlier in May 2025, which linked UK banks to £75bn in fossil fuel projects abroad.

READ MORE: UK Banks Linked to £75bn in Fossil Fuel Projects Abroad

According to InfluenceMap, the top banks in the country—Barclays, HSBC, Lloyds, and NatWest—invested £119 billion in fossil fuel businesses, including oil and gas, between 2020 and 2024. This figure is about double the investment in green ventures during the same period.

The imbalance is much wider at Lloyds, HSBC, and Barclays. When considering these banks separately, Lloyds ploughed 3.1 times more funding into fossil fuels than green activities, followed by HSBC and Barclays with 2.9 times and 1.8 times, respectively.

Bonnie Steinberg, senior analyst at InfluenceMap, said: “The banks' continued financing of expansionary oil and gas companies, and Barclays’ and HSBC’s pushback against sound climate-related financial policy, only worsen the long-term risks these banks face."

In the meantime, NatWest, in contrast to its counterparts, invested more money into green businesses than in fossil fuels. However, all these well-known UK financial institutions continue to support and expand fossil fuel operations.

ALSO READ: Research: European ESG Funds Invested Over €123B in Fossil Fuels

The report found that the banks throw their weight behind polluting businesses through their policies and lobbying practices. While there are some restrictions on direct investments in new fossil fuel expansion, these policies have loopholes that allow them to support big polluters with impunity.

This means money can still flow swimmingly to high-emitting industries indirectly or through other financing mechanisms.

Incidentally, Barclays and HSBC reportedly lobbied the UK government against stringent regulations on sustainable finance, decidedly raising questions about greenwashing, which is rampant in today's environmental, social, and governance (ESG) market, due to the absence of rigorous laws.

The study also highlights the incremental risk of carbon lock-in and stranded assets, meaning if the banks continue to finance the fossil fuel industry, it will lock in high emissions for decades and make it impossible to transition to clean energy. This may create a boomerang effect for the banks, as fossil fuel assets might lose value if global climate policies establish a stranglehold in the future.

“To match the ambition of their top-line targets, the banks’ exclusion policies should recognise fossil fuel expansion as a stranded asset while focusing their transition efforts away from carbon lock-in and towards science-based definitions of green technologies," concludes Steinberg.

Ends/

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Source: InfluenceMap