Sylvie Willis
Climate change is an increasingly pressing issue, and banks and financial institutions are facing scrutiny for their role in funding fossil fuels. Capital One is a large financial institution that has acquired Discover and Diner's Club, and while it is not known for being proactively progressive, it is also not one of the top 60 financial institutions in the Banking on Climate Chaos report. However, Capital One is a notable fossil fuel investor, with 1.4% of its portfolio in energy loans in 2017, and $5.5 billion in loan commitments to energy companies as of 2024. The company has set greenhouse gas (GHG) reduction goals and achieved carbon neutrality for its Scope 1, 2, and 3 emissions. While Capital One has invested in environmentally responsible projects, it lacks explicit policies excluding fossil fuel projects. Its oil and gas investments are relatively small compared to other banks, but it still lends to fossil fuel projects, making it a non-fossil-fuel-free bank.
| Characteristics | Values |
|---|---|
| Capital One's involvement in fossil fuel funding | Capital One is a sizeable fossil fuel investor with $4.5 billion in lending for fossil fuel projects. It does not have policies excluding fossil fuel projects and is not entirely clean or progressive. |
| Capital One's ranking in fossil fuel lending | Capital One is not among the top 60 financial institutions in the Banking on Climate Chaos report. However, its ranking has improved from 71 in 2023 to 58 in 2024, and it may appear in the next Climate Chaos report. |
| Capital One's energy loans and commitments | Capital One had $3.5 billion in energy-banking loan commitments in 2022, which have grown to $5.5 billion in commitments to over 140 energy companies as of 2024. |
| Capital One's investment in environmentally responsible projects | Capital One has invested over $7 billion in environmentally responsible projects since 2015 and has set greenhouse gas (GHG) reduction goals. |
| Capital One's approach to climate change | Capital One believes in addressing climate change and has updated sustainability goals, including transitioning from carbon-intensive sources to renewable energy. |
| Capital One's carbon pricing | Capital One has established an internal price on carbon at $15 per metric ton of CO2e, creating financial incentives to reduce emissions and fund sustainability initiatives. |
| Capital One's water footprint | Capital One aims to reduce its water footprint, recognizing the importance of addressing water crises. |
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What You'll Learn
Capital One's involvement in fossil fuel funding
Capital One is a large financial institution that has acquired Discover and Diner's Club. While it is not a proactively progressive institution with policies explicitly excluding fossil fuel projects, it does seem to be focused on the individual and small business market. Notably, Capital One does not feature in the top 60 financial institutions in the Banking on Climate Chaos report, which details the world's top 60 banks' lending and underwriting to over 4,200 fossil fuel companies.
However, Capital One is still a sizable fossil fuel investor. Research by Stop the Money Pipeline indicated that 1.4% of their portfolio was in energy loans in 2017. Their website mentions "$3.5 billion in energy-banking loan commitments in 2022", which has grown to "$5.5 billion in loan commitments to more than 140 energy companies as of 2024". This indicates that Capital One is still focused on oil and gas exploration and production, with $4.5 billion directed towards lending for fossil fuel projects. This amount would place Capital One within the top 60 fossil fuel lenders, although it is relatively small compared to other lenders such as Chase's $40 billion in 2023.
Capital One has expressed a commitment to addressing climate change and claims to have invested over $7 billion in environmentally responsible projects. They have set greenhouse gas (GHG) reduction goals and achieved carbon neutrality for Scope 1, 2, and 3 business travel emissions by 2018. Additionally, they have established an internal price on carbon to incentivize emissions reduction and fund sustainability initiatives.
While Capital One's efforts towards sustainability and reducing emissions are notable, they do not qualify as a fossil fuel-free bank. Their involvement in fossil fuel funding is evident, and they are a significant investor in the industry. However, their investments are smaller compared to some other major financial institutions.
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Capital One's position in the Banking on Climate Chaos report
Capital One is not one of the top 60 financial institutions in the Banking on Climate Chaos report. However, it is a sizable fossil fuel investor. Research by Stop the Money Pipeline indicated that 1.4% of their portfolio was in energy loans in 2017. Capital One's website has a “Capital One Energy Solutions” page that indicated $3.5 billion in energy-banking loan commitments in 2022, which grew to $5.5 billion in loan commitments to more than 140 energy companies as of 2024. That $4.5 billion of lending for fossil fuel projects would place Capital One within the top 60 fossil fuel lenders in the Banking on Climate Chaos list (near the end of the list). They are not listed in the Climate Chaos report because it focuses on the top 60 banks globally by asset. Capital One was 71st in 2023 but moved to 58th in 2024, so it will likely appear in the next Climate Chaos report.
Capital One is not a proactively progressive institution and has no policies explicitly excluding fossil fuel projects. However, they now have an Alternative Energy manager and list $1 billion in utility-scale wind and solar. Their oil and gas investments are relatively small in the fossil finance world compared to Chase's $40 billion in 2023 alone. Capital One is not a fossil fuel-free bank, but its investments are focused on the individual and small business market.
The Banking on Climate Chaos report reveals that the 60 largest commercial and investment banks poured a total of $6.9 trillion into fossil fuels since the adoption of the Paris Agreements on climate in 2015, with $705 billion in 2023 alone. The world's largest banks fund the climate chaos fossil fuel companies wreak on communities worldwide. Since the Paris Agreement, from 2016 to 2023, the world's 60 largest private banks financed fossil fuels with USD $6.9 trillion, with US banks JPMorgan Chase, Citi, Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley accounting for over $1.8 trillion. Nearly half of the total from the 60 banks – $3.3 trillion – went towards the top fossil fuel expansion companies.
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Capital One's investments in renewable energy
Capital One is a large financial institution that has acquired Discover and Diner's Club. It is not a proactively progressive institution with no policies explicitly excluding fossil fuel projects. However, it is focused on individual and small business markets. While Capital One is a sizable fossil fuel investor, it is not among the top 60 financial institutions in the Banking on Climate Chaos report.
Capital One's website mentions $5.5 billion in loan commitments to more than 140 energy companies as of 2024. The company has also listed $1 billion in utility-scale wind and solar investments, indicating a shift towards renewable energy. Notably, Capital One's Commercial Bank Alternative Energy Finance team provided the tax equity for the largest solar project in Idaho, showcasing its involvement in renewable energy projects.
Capital One has over 30 years of experience in the energy industry, serving companies across upstream, midstream, power, renewables, and energy transition. The company offers a range of financing options, including term loans, revolving credit, and letters of credit, tailored to the unique needs of the energy sector.
Capital One has expressed its commitment to minimizing its environmental impact and adopting sustainable business practices. While it does not have explicit policies excluding fossil fuel projects, its focus on renewable energy projects and sustainability initiatives demonstrates a growing awareness of its environmental responsibilities.
In summary, while Capital One is not a fossil fuel-free institution, it has made notable investments in renewable energy projects and expressed a commitment to sustainability. The company's expertise in the energy industry and its range of financing options position it as a partner for businesses seeking to transition to renewable energy sources.
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Capital One's carbon footprint and reduction goals
Capital One is a large financial institution that has acquired Discover and Diner's Club in 2024. It is not a proactively progressive institution and does not have policies that explicitly exclude any type of fossil fuel project. Capital One is a sizable fossil fuel investor, with 1.4% of their portfolio in energy loans in 2017. Their website indicated $3.5 billion in energy-banking loan commitments in 2022, which has grown to $5.5 billion in loan commitments to more than 140 energy companies as of 2024.
Capital One is not a fossil fuel-free bank, but its oil and gas investments are relatively small compared to other banks. For instance, while Capital One provided $4.5 billion for fossil fuel projects, Chase invested $40 billion in 2023 alone. Capital One's oil and gas exploration and production focus is evident, but they have also listed $1 billion in utility-scale wind and solar investments.
Despite not being entirely fossil fuel-free, Capital One has demonstrated a commitment to reducing its carbon footprint and promoting environmental sustainability. Since 2015, Capital One has invested over $7 billion in environmentally responsible projects. In 2017, they achieved their goal of sourcing 100% of their electricity from renewable sources and became a member of RE100, a global initiative advocating for renewable electricity. Additionally, they invested $75 million in tax equity for the Chevelon Butte wind farm project in Arizona, which now generates enough clean energy to power approximately 60,000 homes without carbon emissions.
Capital One has also set greenhouse gas (GHG) reduction goals and achieved carbon neutrality for Scope 1, Scope 2, and Scope 3 business travel emissions in 2018. Recognizing the evolving nature of climate science, they have leveraged tools provided by the Science-Based Target Initiative (SBTI) to develop new GHG reduction targets. Capital One continues to prioritize the purchase of 100% renewable energy while increasing location-aligned procurement by 50% in its markets.
Capital One's other environmental commitments include the exclusive use of Environmentally Preferred Paper (EPP) for at least 95% of its paper procurement, ensuring certification by the Forest Stewardship Council (FSC) or containing 30% post-consumer recycled content. They also aim to pursue US Green Building Council (USGBC) certification of LEED Silver or higher for all new office locations or comprehensive renovations.
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Capital One's sustainability goals and initiatives
Capital One is a large financial institution that has acquired Discover and Diner's Club. While it is not a proactively progressive institution with policies explicitly excluding fossil fuel projects, it does seem to be focused on the individual and small business market. Capital One does not feature in the top 60 financial institutions in the Banking on Climate Chaos report, but it is a sizable fossil fuel investor. Research by Stop the Money Pipeline indicates that 1.4% of their portfolio was in energy loans in 2017.
Capital One's website has a “Capital One Energy Solutions” page that indicated $3.5 billion in energy-banking loan commitments in 2022, which has grown to a listing of $5.5 billion in loan commitments to more than 140 energy companies as of 2024. While they now have an Alternative Energy manager and list $1 billion in utility-scale wind and solar, they are still focused on oil and gas exploration and production, with $4.5 billion in lending for fossil fuel projects. This would place Capital One within the top 60 fossil fuel lenders in the Banking on Climate Chaos list, but they are not listed as the report focuses on the top 60 banks globally by asset.
Capital One has set a target of reducing emissions by 50%. They have also invested $75 million of tax equity in Chevelon Butte, a wind farm in Arizona, which generates enough clean energy to power approximately 60,000 homes across the state without carbon emissions. Capital One's Energy, Power, and Renewables team provided about 45% of the tax equity for the project.
Capital One is focused on creating a world where everyone has an equal opportunity to prosper and is committed to improving the environmental sustainability of its business. They have also introduced the Capital One EV Hub, which helps car buyers understand the world of hybrid and electric vehicles to make more informed decisions about sustainable vehicle options.
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Frequently asked questions
Yes, Capital One is involved in funding fossil fuels. While they have an Alternative Energy manager and list $1 billion in utility-scale wind and solar, they are still focused on oil and gas exploration and production. They are not a proactively progressive institution and have no policies excluding fossil fuel projects.
Capital One has invested $4.5 billion in fossil fuels, which is relatively small compared to Chase's $40 billion in 2023. They have also set a $15 price per metric ton of CO2e internal price on carbon, creating a financial incentive to reduce emissions.
Capital One is not one of the top 60 financial institutions in the Banking on Climate Chaos report, but they are a sizable fossil fuel investor. Their oil and gas investments are relatively small in the fossil finance world.
Some of the top US banks that finance fossil fuels include JPMorgan Chase, Citi, Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley. These banks have collectively financed over $1.8 trillion in fossil fuels since the Paris Agreement.
