Pages tagged "créditagricole"


Time for France’s Biggest Bank to Stop Funding Mountaintop Removal Coal

This post is by Ben Collins of RAN and Yann Louvel of BankTrack.

The campaign to stop bank financing of mountaintop removal coal mining is gaining momentum.

For years, RAN and other organizations in the global BankTrack network have urged U.S. and European banks to stop financing the devastation caused by mountaintop removal (MTR) coal mining. BankTrack members have worked closely with advocates from Appalachia — the region hardest hit by MTR — including Paul Corbit Brown and Elise Keaton from Keeper of the Mountains, and Bob Kincaid from Coal River Mountain Watch. Together, they’ve travelled around the U.S. and Europe to speak directly to CEOs and boards of banks at their annual shareholder meetings and urge them to stop bankrolling mountaintop removal coal mining.

This week, we have an opportunity to push France’s biggest bank, Crédit Agricole, to stop profiting from MTR once and for all. At today’s annual shareholder meeting, Paul Corbit Brown and staff from Friends of the Earth France urged the bank’s CEO, Jean-Paul Chifflet, to follow the lead of other banks and stop funding the biggest and most destructive MTR companies.

Take action: Now’s the time to back them up — please add your voice now! GFC_MTR_crop 

Public pressure to stop funding MTR started showing results a few years ago. U.S. banks were the first to react in 2008, adopting a mix of enhanced due diligence procedures and financing thresholds for companies that engage in mountaintop removal. But real change started to happen last year, when Wells Fargo in the U.S., and Crédit Agricole and BNP Paribas in France, adopted new policies on MTR. These covered both direct project financing of MTR projects — which is pretty rare — and, more importantly, general corporate financing of coal mining companies active in MTR.

The implications of these new policies are potentially huge: the biggest and most harmful producers of MTR coal, such as Alpha Natural Resources and Arch Coal, raise their funding from general corporate loans from banks or from bonds or shares issued to investors. And these are precisely the transactions that should be excluded by these new policies, which bar financing for companies that are “significant” producers of MTR coal.

But we’ve learned that different banks define "significant" in wildly different ways. BNP Paribas blacklists the main companies active in MTR production, including Alpha and Arch. But Crédit Agricole — while its policy looks similar to BNP’s on paper — excludes only those coal mining companies that produce more than 20% of their coal from MTR. In practice, they aren’t prohibited from doing business with any MTR companies at all!

Take action: Will you tell Crédit Agricole Jean-Paul Chifflet to close the bank’s huge MTR loophole?

Crédit Agricole has financed several loan and bond deals for Alpha and Arch — the worst of the worst MTR companies — while BNP Paribas hasn’t done any deals with these two companies since last year. Ironically for Crédit Agricole, financing MTR has not only been bad for the environment and human rights — it’s also been a bad investment. The bank suffered significant financial losses from loans it made to recently-bankrupt MTR miner Trinity Coal.

In contrast to Crédit Agricole, other U.S. and European banks have taken concrete steps away from MTR financing this spring. Last month, JPMorgan Chase published an update of its environmental and social policy framework, stating that they expected to continue defunding companies engaged in mountaintop mining. And in the U.K., Royal Bank of Scotland (RBS) published a mining policy update prohibiting deals with the main MTR producers. Unlike Crédit Agricole’s new policy, these policy changes at JPMorgan Chase and RBS have teeth: both banks will stop financing top MTR producers, including Alpha and Arch.

Today, our allies went straight to Crédit Agricole’s annual shareholder meeting to tell the bank’s CEO and board close its massive MTR loophole, and stop funding Alpha and Arch.

Take action: We have Crédit Agricole's attention — will you add your voice?

Yann Louvel, Climate and Energy Campaign Coordinator, BankTrack
Ben Collins, Research and Policy Campaigner, Rainforest Action Network


The Top 20 Climate Killer Banks

Bankrolling Climate Change coverA new report titled “Bankrolling Climate Change” calls out the top 20 banks that are financing the dirty coal industry. The top three “climate killers” will not come as much of a surprise: JP Morgan Chase, Citi, and none other than Bank of America top the list with $22 billion, $18.27 billion, an $16.79 billion invested in coal since 2005, respectively. As officials from around the world are assembling in Durban, South Africa to discuss ways to combat climate change, banks around the world are busy trying to figure out how they can profit off of making the climate crisis worse. In fact, between 2005 — the year the Kyoto Protocol went into effect — and 2010, funding for coal nearly doubled. Yes, you read that right: As the world’s leaders have been trying to get their act together and deal with the most urgent existential crisis humanity has ever faced, the biggest banks in the world have been busy sinking as much money as they can into the single largest cause of that crisis (emissions from coal-fired power plants are the biggest source of man-made carbon pollution). As the report notes, these banks are not unaware of the climate crisis. It’s just that they see it more as an opportunity for some great PR than a problem they have a stake in solving even if it means leaving money on the table. All of the top 20 coal bankrollers have made climate commitments that are drastically contradicted by where they’re actually investing their money. JP Morgan Chase claims it’s “Helping the world transition to a low-carbon economy”, for instance. Citi holds itself out as the “Most innovative bank in climate change” — which sounds more like Citi is gunning for Chase’s number one spot than trying to help solve the climate crisis, but who am I to quibble with how Citi chooses to word its greenwash. Bank of America has declared that “The most formidable challenge we face is global climate change.” A fittingly purposeless statement, given that BoA has invested $4.3 billion in the US coal industry, making it the single largest underwriter of America’s coal problem. Here is a chart showing which banks made the top 20, and the amount they’ve invested in companies that are polluting our communities and wrecking our climate:
Bank in billion Euro   Ranking
JP Morgan Chase 16,540 1
Citi 13,751 2
Bank of America 12,590 3
Morgan Stanley 12,117 4
Barclays 11,514 5
Deutsche Bank 11,477 6
Royal Bank of Scotland 10,946 7
BNP Paribas 10,694 8
Credit Suisse 9,495 9
UBS 8,217 10
Goldman Sachs 6,770 11
Bank of China 6,323 12
Industrial and Commercial Bank of China 6,182 13
Crédit Agricole / Calyon 5,637 14
UniCredit / HVB 5,231 15
China Construction Bank 5,110 16
Mitsubishi UFJ Financial Group 4,980 17
Société Générale 4,742 18
Wells Fargo 4,523 19
HSBC 4,432 20
Data provided by Profundo

An international coalition of NGOs came together to release this groundbreaking report, including urgewald, a German environmental organization; groundWork and Earthlife Africa Johannesburg, two South African social and environmental justice organizations; and BankTrack, an international network. RAN contributed research to the report. A full copy of the study with a ranking of all the researched banks can be downloaded here. The underlying data for this research were provided by Profundo economic research. They can be found here.

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