[BANK]’s human rights responsibilities and legal duties with respect to energy sector clients

ClientEarth asserts that banks providing financial services to fossil fuel expanders like Saudi Aramco are contributing to climate-related human rights impacts. The organization argues that such financing violates the UN Guiding Principles on Business & Human Rights and the OECD Guidelines, creating significant legal risks through emerging mandatory human rights due diligence laws and greenwashing litigation. ClientEarth proposes specific 'red-lines,' including an immediate end to financing new fossil fuel exploration and requiring clients to publish Paris-aligned transition plans by H1 2024.

• Banks have a legal responsibility under international law, specifically the UN Guiding Principles on Business & Human Rights (UNGPs) and OECD Guidelines, to prevent, mitigate, and remedy climate-related human rights impacts across their entire value chain, including lending, underwriting, and advisory services.
• Continuing business relationships with clients pursuing fossil fuel expansion, such as Saudi Aramco, may move a bank from being 'directly linked' to 'contributing' to climate-related human rights impacts if the bank fails to use its leverage to align the client with the Paris Agreement.
• Saudi Aramco is identified as a primary driver of climate-related human rights risks, being the largest greenhouse gas emitter (4.33% of global CO2 and methane emissions from 1965-2018) and planning to increase oil and gas reserves despite 'net zero' claims that exclude Scope 3 emissions.
• Banks face increasing legal risks from mandatory human rights and environmental due diligence (mHREDD) laws in France, Germany, and Norway, as well as forthcoming EU legislation, which may allow for damages claims and extraterritorial application.
• Greenwashing presents a significant legal and regulatory risk, particularly the 'say-do' gap between a bank's public climate commitments (such as the Net Zero Banking Alliance) and its continued financing of fossil fuel expansion.
• ClientEarth proposes four specific 'red-lines' for banks: immediately ceasing services for new fossil fuel exploration/expansion; requiring clients to publish Scope 1, 2, and 3 data and Paris-aligned transition plans by the end of H1 2024; making the consequences of non-compliance explicit; and being transparent about transition claims.

APA

ClientEarth (2023). [BANK]’s human rights responsibilities and legal duties with respect to energy sector clients. https://www.clientearth.org/media/i3mnszvr/letter-from-clientearth-to-10-banks-regarding-their-human-rights-responsibilities-and-legal-duties-with-respect-to-energy-sector-clients.pdf

Chicago

ClientEarth. [BANK]’s human rights responsibilities and legal duties with respect to energy sector clients. 2023. https://www.clientearth.org/media/i3mnszvr/letter-from-clientearth-to-10-banks-regarding-their-human-rights-responsibilities-and-legal-duties-with-respect-to-energy-sector-clients.pdf.

Wikipedia

{{cite press release |author=ClientEarth |title=[BANK]’s human rights responsibilities and legal duties with respect to energy sector clients |date=4 December 2023 |url=https://www.clientearth.org/media/i3mnszvr/letter-from-clientearth-to-10-banks-regarding-their-human-rights-responsibilities-and-legal-duties-with-respect-to-energy-sector-clients.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clientearth2023banks, author = {{ClientEarth}}, title = {{[BANK]’s human rights responsibilities and legal duties with respect to energy sector clients}}, publisher = {ClientEarth}, year = {2023}, month = dec, url = {https://www.clientearth.org/media/i3mnszvr/letter-from-clientearth-to-10-banks-regarding-their-human-rights-responsibilities-and-legal-duties-with-respect-to-energy-sector-clients.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }