South America: The biggest bankrollers of oil and gas in the Amazon only apply their policies to about a third of the rainforest, says investigation; incl. companies' comments
"Weak banking regulations leave two-thirds of Amazon vulnerable to oil and gas", 11 June 2024
...There are hundreds of oil and gas operations across the Amazon Rainforest...They need support from big banks that provide direct funding through loans and underwriting bonds, which themselves need to be regulated, critics say...
A joint investigation by several conservation groups looked at more than 560 financial transactions involving more than 280 banks and 80 oil and gas companies working in the Amazon, concluding that what the banks claim to be doing for the environment is far from the “true impacts of their policies.”
In fact, some of the biggest bankrollers of oil and gas (Citibank, JPMorgan Chase, Itaú Unibanco, Santander and Bank of America) only apply their policies to about a third of the rainforest, leaving the rest vulnerable to potential environmental destruction. The areas where the policies do apply still aren’t completely protected, the report said...
...Only HSBC has prohibited financing across the entire Amazon, while JPMorgan Chase and Citibank have prohibited funding in only 2% of the region. Santander has only prohibited 16%, or around 1.33 million square kilometers (513,000 square miles).
In a statement, a JPMorgan Chase spokesperson said it supports the fundamental principles of human rights, including Indigenous people’s rights. Santander said it understands the importance of protecting the Amazon and supporting sustainable development in the region.
“We are also actively involved in several industry initiatives to protect the region and work proactively with clients, as well as other banks, governments, regulators and other institutions to help improve practices, recognizing this is a highly complex challenge that requires a multifaceted, multi-lateral response,” a Santander spokesperson said in an email.
Bank of America declined to comment for this article. Other banks didn’t respond to a request for comment, but told the report authors they were concerned about the climate crisis and the rights of Indigenous people...
Only around 40% of the Amazon is “screened” by Citibank and Bank of America, while Santander only screens 24% of it. Itaú Unibanco has no exclusion or screening policies at all.
Only HSBC has exclusion policies that cover 100% of the Amazon for oil and gas...