Snapshot

In February 2023, Brazilian and French NGOs filed a lawsuit against BNP Paribas. They alleged that BNP Paribas violated the French Duty of Vigilance Law by financing companies allegedly causing deforestation in Brazil, without doing proper background checks.

Factual Background

BNP Paribas, the largest bank in the Eurozone, provided financial services to beef and soy companies operating in the Amazon and Cerrado regions of Brazil allegedly linked to deforestation. .

Legal Argument

NGOs Comissão Pastoral da Terra of Brazil and Notre Affaire à Tous of France argue BNP Paribas violated the 2017 French Duty of Vigilance Law. The NGOs assert that the bank provided financial services to companies allegedly causing deforestation in the Amazon without undertaking sufficient checks prior to financing them.

In response to the lawsuit, the bank asserted it requires “full traceability” from its clients’ when describing their Amazonian beef and soy supply chains. The company also said it does not provide services to companies that cannot agree to such terms.

Legal Proceedings

In February 2023, the NGOs filed a lawsuit against BNP Paribas at the Paris judicial court. The case is ongoing.

News Items

French bank BNP Paribas sued by NGOs over Amazon deforestation link, ET Energy World, 27 Feb 2023