After working with Citigroup to develop stringent project financing standards based on sustainable development guidelines, Rainforest Action Network is challenging the 10 largest U.S. financial institutions to follow suit.
RAN is calling on the companies to phase out funding for the oil, gas, mining, and logging industries in endangered ecosystems; reduce funding for greenhouse gas producing industries, and work more closely with local populations, among other things. The changes would affect billions of dollars of loans a year.
RAN calls on the companies to adopt standards that meet or exceed those of Citigroup, the largest bank, by Earth Day on April 22.
The companies include:
J.P. Morgan; Bank of America; Wachovia Corp.; Wells Fargo; Bank One; FleetBoston; U.S. Bancorp; SunTrust; Goldman Sachs and John Hancock.
"Long-term investments in ecological and social sustainability is the only path to ensure the future health of the global economy," said Ilyse Hogue, a Rainforest director. "The bulk of our financial institutions are behind the global curve in confronting these challenges."
After years of criticism from Rainforest, Citigroup in January agreed not to finance projects in "critical natural habitats" unless borrowers show they "will not significantly degrade or convert the critical natural habitat." It also agreed not to finance commercial logging operations or logging equipment to be used in rain forests, and to protect areas that might suffer ecological damage from development. Citigroup's guidelines are tighter than the "Equator Principles" drafted by International Finance Corp., the World Bank's private-sector arm.
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