La Banque Postale, the 16-year-old banking branch of France’s postal service, is the world’s first bank to set a hard deadline on financing for oil and gas. It will discontinue investments in those companies by 2030.

Why should we care?
LBP holds $900B in assets, which is less than other French banks like BNP Paribas and Crédit Agricole—but the bank still sees an opportunity to contribute to decarbonization efforts while also differentiating itself from competitors. “The point for us was to say, ‘How can we distinguish ourselves in a very competitive landscape? How can we be seen as consistent and truly committed?'” said LBP Chairman Philippe Heim. “We want to be synchronized with our clients, especially with young people.” Heim also noted that financing for new pipeline projects sets the world decades behind its goals, since those projects are live for decades. LBP’s asset management division is not subject to the bank’s larger exit target, however, which presents a fine-print loophole for the very investments Heim claims to see as a concern. The branch will produce its own climate plan later in 2022. That roadmap presents an additional opportunity for LBP to trailblaze.