© Rainforest Action Network, 2001
November 9, 2001

In a major step toward shifting the world's financial sector to ecological sustainability, Dutch Bank ABM AMRO has announced it will stop or substantially restrict the financing of extractive industries in primary forests. Two other Dutch Banks, Fortis Bank and Rabobank, have instituted more narrow policies in response to growing concerns about the destructive effects of the development of palm oil plantations. The policy addresses all industries that destroy tropical rainforests, increase the risk of large-scale forest fires and devastate local communities. This victory sets a new standard that makes it unacceptable to do business with corporations that destroy forests or threaten their traditional inhabitants. This is part of a growing trend among consumers who are demanding that companies address the social and environmental impacts of their business practices. A recent Los Angeles Times poll shows that 9 out of 10 American's support preservation of remaining wilderness and consumer pressure has recently forced hundreds of major companies around the world, including the UK's B&Q, the Netherlands' Intergamma, and U.S. home improvement retailer Home Depot, to commit to phase out the sale of wood coming from endangered forests.

Current campaigns in the United States call upon American financial institutions to institute similar policies. Because of the leading role these institutions play in the global economy, such commitments are necessary to address the alarming rate of destruction of the world's forests. As North America's largest financial institution, Citigroup has a unique responsibility to lead the U.S. financial sector toward socially and environmentally beneficial economics. Citigroup, whose Citibank and Salomon Smith Barney units operate in 102 countries, is among the biggest financial backers of destructive industries. According to Bloomberg analytics, Citigroup was the No. 1 financier of oil pipelines and the coal industry in 2000, as measured by loans and corporate bond underwriting, and was No. 2 in mining, forest and paper products. Citigroup has also financed the conversion of millions of acres of primary rainforest into palm oil plantations.

Instituting policies similar to those adopted by the Dutch Banks would halt Citigroup's key destructive projects, including the Camisea Gas Project in Peru, the OCP Pipeline in Ecuador and the Chad-Cameroon Pipeline in Central Africa, all of which are currently destroying pristine ecosystems and displacing thousands of indigenous peoples.

"This exciting victory shows that the financial sector can and must take responsibility for the role it plays in the crisis occurring in the world's forests," said Ilyse Hogue, Global Finance Campaigner with Rainforest Action Network. "Citigroup is in the position to set acceptable environmental standards for U.S. financial institutions. Capital investment is the fuel that enables destructive activities to continue unabated and Citigroup customers are speaking out to tell Citi, 'Not with my money.'"

Rainforests cover less than 5 percent of the earth's surface, yet they are home to nearly half the world's species. Rainforests store extensive amounts of carbon and are therefore critical to moderating the effects of climate change. Rainforests are home to more than 200 million indigenous people worldwide. Less than 20% of the world's old growth forests remain intact.

Press Contacts:

Sara Brown Riggs

Ilyse Hogue

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