Green groups in lawsuit over RBS
30 Jun 09
Bank's lending portfolio under scrutiny
Three environmental groups have lodged a lawsuit with the High Court against the Treasury, demanding that taxpayers’ money invested in the Royal Bank of Scotland supports only projects that satisfy minimum green and human rights standards.
The move is the latest sign of how the Government’s recent part-ownership of some of Britain’s biggest commercial banks could affect their operations.
Three groups of environmentalists – the World Development Movement, Platform and People & Planet – are behind the case, and are being represented by Leigh Day & Co.
The groups say the Treasury has breached its own policy to tackle climate change and reduce carbon emissions by using public funds to bail out RBS, which has long been one of the top lenders to the energy industry.
The three groups are now seeking to force the Government to assess RBS’s lending portfolio to ensure that the bank is investing only in projects that promote “a sustainable and ethical future”.
RBS is 70% owned by the Government after being brought to the brink of collapse last October.