JAKARTA — Calls are mounting for global financiers to cut ties with Adaro, one of Indonesia’s biggest coal companies, as the miner shows no sign of moving away from the fossil fuel despite its net-zero pledge. More than 33,000 people have signed an online petition calling on JPMorgan, Citi and Deutsche Bank to drop Adaro as a client. Citi has loaned $400 million to Adaro, while JPMorgan and Deutsche Bank’s environmental, social and governance (ESG) policies don’t rule out financing the company. Adaro is a major emitter, responsible for 0.28% of global CO2 output since the signing of the Paris Agreement in 2015, according to research by the Carbon Major Database. But the company lacks credible plans to reduce its emissions, according to the petition, organized by global consumer watchdog Ekō. Apekshita Varshney, campaigner at Ekō, called Adaro’s business model “toxic,” with 70% of its total revenue still coming from sales of thermal coal, the type used to generate electricity. “Banks considering it as a client while at the same time trying to present a green face to the world risk serious harm to their reputation,” she said. Amid environmental concerns, major banks like BNP Paribas and DBS have refused to underwrite any future bonds for Adaro, while South Korean automaker Hyundai scrapped a deal to source aluminum from an Adaro-built smelter, Varshney pointed out. “It’s a clear signal that coal miners cannot get away with greenwash and fake transition plans,” she said. In April 2022, Adaro Energy’s CEO, Garibaldi…This article was originally published on Mongabay
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