Friends of the Earth: ‘105 Orgs Demand Banks Stop Financing Industrial Livestock Production that Fuels the Climate Crisis’

https://foe.org/news/banks-industrial-livestock/

New York – 105 civil society organizations from across the globe have raised concerns with major U.S. banks today, urging them to halt their financing of industrial livestock production. The open letter, delivered to financial giants including Bank of America (BAC), Citigroup (C), and JPMorgan Chase (JPM), highlights the critical role these institutions play in exacerbating the climate crisis through their support of meat, dairy, and feed corporations, including companies like JBS S.A. (JBSAY), Tyson Foods Inc. (TSN), Cargill, and Nestlé S.A. (NESN and NSRGY).

The letter underscores the severe environmental impacts of industrial livestock production. Signatories argue that the industry’s emissions significantly contribute to global warming and biodiversity loss while also inflicting substantial harm on animal welfare and human rights.

“Most global food and agriculture emissions come from livestock production, and studies have found that global livestock production will use almost half of the world’s 1.5˚C emissions budget by 2030 and 80% by 2050,” the letter states. The emissions from the top 56 global meat, dairy and feed corporations alone are reportedly higher than those of Japan, the world’s eighth largest emitter.

“Industrial livestock production is one of the most destructive activities for our planet. By continuing to finance meat, dairy, and feed corporations, banks are complicit in driving climate change and environmental degradation, undermining their own climate commitments. Halting all new financing that enables the expansion of industrial livestock production is one of the most climate-positive actions banks can take,” said Monique Mikhail, Agriculture & Climate Finance Campaigns Director with Friends of the Earth U.S. (FOE U.S.).

The signatories criticize the banks for prioritizing corporate profits over planetary health and emphasize that emissions from livestock corporations are likely much higher. Research indicates that meat and dairy corporations’ actual emissions may be up to 4x higher than self-reported figures. This discrepancy is attributed to underreported data and the exclusion of Scope 3 emissions, which account for the majority of these companies’ greenhouse gas output.

Recent research highlights the scale of the financial sector’s involvement. A study by Profundo and Feedback Global found that global banks have provided over $615 billion in credit to the largest meat, dairy, and feed corporations since the Paris Agreement was signed. Notably, U.S.-based Bank of America, Citigroup, and JPMorgan Chase have been major financiers. An additional study by Profundo and FOE U.S. found that lending from these three banks to meat, dairy, and feed corporations represents a tiny fraction (0.25%) of their portfolios but results in approximately 11% of their reported greenhouse gas emissions – a 44x difference. 

Of the 58 U.S. banks examined in a study by Profundo and FOE U.S., up to 70% of the banks’ total meat and dairy related financed and facilitated emissions are methane (using GWP20), which has 80x the warming potential of carbon dioxide. Bank of America’s underwriting of JBS alone accounted for 87% of its facilitated methane emissions from meat and dairy corporations.   

The letter calls on banks to recognize industrial livestock production as high-emitting and to set and implement agriculture sector-specific 1.5°C targets and action plans. Key demands include halting new financing for industrial livestock production, requiring clients to disclose and adhere to verified climate targets, and addressing the broader social and environmental harms caused by the industry.

Full Document below: 

https://foe.org/wp-content/uploads/2024/08/FINAL_CSO-Joint-Letter-to-banks_Stop-financing-industrial-livestock-productions_Aug.22.2024.docx

September 12, 2024

An open letter to the private banking sector on its role in fueling the climate crisis by financing industrial livestock production 

We, the undersigned 105 organizations, urgently call on global private banks to address their role in financing industrial livestock production. This funding accelerates climate change, drives catastrophic biodiversity loss, exacerbates food insecurity, and damages animal welfare and human rights. All financial institutions involved in financing this sector must take immediate and decisive action to halt their contribution to these escalating crises.

Most global food and agriculture emissions come from livestock production, and studies have found that global livestock production will use almost half of the world’s 1.5˚C emissions budget by 2030 and 80% by 2050. Industrial livestock corporations contribute substantially to this — the emissions of just the top 56 global meat, dairy, and feed corporations are higher than those of Japan, the world’s eighth largest emitter. 

The actual emissions are undoubtedly higher than their self-reported emissions because meat, dairy, and feed corporations’ emissions data is often underreported and Scope 3 impacts are largely undisclosed, even though they generally account for 90% or more of these companies’ emissions. By financing the world’s largest meat, dairy, and feed corporations, global banks are prioritizing corporate gain at the expense of people and the planet.

Thus, we call upon all banks to treat industrial livestock as a high-emitting sector — and to immediately set, publish, and implement agriculture sector-specific 1.5°C targets and action plans. At a minimum, this includes:

  • Halting all new financing that enables the perpetuation or expansion of industrial livestock production.
  • Requiring meat, dairy, and feed clients to disclose third party verified 1.5°C targets and action plans that align with the Intergovernmental Panel on Climate Change 2022 (IPCC22) or an equivalent science-based sectoral pathway.
  • Addressing the additional social and environmental harms from industrial livestock production.

As the climate crisis deepens and evidence of harm driven by companies and ignored by their financiers mounts, banks are coming under increasing pressure from policymakers, shareholders, and civil society. They are increasingly expected to slash the greenhouse gas (GHG) emissions attributable to their loans, underwriting, investments, and other financial services. This pressure has resulted in climate commitments from financial institutions, including the commitment by signatories to the Net Zero Banking Alliance to set GHG emissions reduction targets for agriculture by the end of 2024.

Despite their climate commitments and the overwhelming evidence that the perpetuation and expansion of industrial livestock production emits significant GHG emissions, recent research conducted by Profundo and Feedback Global shows that global bank financing of corporations involved in industrial livestock production is significant and increasing. Over half a trillion dollars in credit, US$615 billion, have been provided globally to the world’s largest meat, dairy, and feed corporations in just over eight years and since the Paris Agreement was signed. From 2019 to 2022, banks granted 15% more credit to the largest meat, dairy, and feed corporations than the previous four years.

Further research in a study by Friends of the Earth U.S. (FOE U.S.) and Profundo titled Bull in the Climate Shop: Industrial Livestock Financing Sabotages Major U.S. Banks’ Climate Commitments reveals that of the US$134 billion in loans and underwriting from U.S.-based banks to the meat, dairy, and feed corporations examined, more than half can be attributed to Bank of America, Citigroup, and JP Morgan Chase (the “Big Three”). 

The Big Three’s lending to meat, dairy, and feed corporations results in approximately 11% of greenhouse gas emissions linked to the banks’ financing. However, these corporations represent just a tiny fraction (0.25%) of the banks’ portfolios — a 44X difference. Thus, by eliminating their financing of high-emitting corporations involved in meat, dairy, and feed production — a relatively small change in how they allocate their capital — these big banks can affect a sharp emissions reduction. The biggest emitters among the Big Three’s meat, dairy, and feed clients include Cargill, ADM, Bunge, and Nestlé.

What is worse, of the 58 U.S. banks examined in FOE U.S.’ report, up to 70% of the banks’ total meat and dairy related financed and facilitated emissions are methane (using GWP20), which has 80X the warming potential of carbon dioxide. Bank of America’s underwriting of JBS alone accounted for 87% of its facilitated methane emissions from meat and dairy corporations.

Investing in industrial livestock production is not aligned with safeguarding the stability of life-sustaining systems. Industrial livestock companies’ operations are structurally at odds with a sustainable future — they are hardwired to pursue growth in the unsustainable mass production of meat and dairy.

Therefore, banks simply cannot achieve their climate commitments without a significant reduction in their financing to meat, dairy, and feed corporations. Halting bank financing of industrial livestock production would immediately and significantly improve banks’ emissions equation, demonstrate a commitment to addressing climate and nature-related impacts, and deliver benefits to the planet, people, and the banks.

We urge banks to take immediate action.

We welcome a conversation with you to discuss this matter in the coming weeks. For questions and feedback, please contact Eryn Schornick at [email protected].

Sincerely,

1000 Grandmothers for Future Generations

A Well-Fed World

AbibiNsroma Foundation (ANF)

ActionAid France

ActionAid International

ActionAid UK

ActionAid USA

Aliansi Masyarakat Adat Nusantara (AMAN) Maluku

Angie

Animal Partisan

Animals Asia Foundation

Asia Indigenous Peoples Network on Extractive Industries and Energy (AIPNEE)

Asociación Unión de Talleres 11 de septiembre

Bank Climate Advocates

Bank Information Center

Bank on our Future

BankTrack

Better Food Foundation

Beyond Cruelty Foundation

Brighter Green

Coalition of African Animal Welfare Organizations (CAAWO)

Center for Biological Diversity

Center For Food Safety

Changing Markets Foundation

chilli.club

Churchill Fellowship

ClientEarth USA

Climate Organizing Hub

Colossal

Community Alliance for Global Justice

Community Empowerment and Social Justice Network (CEMSOJ)

Compassion in World Farming International

Concerned Health Professionals of Pennsylvania

COUNCIL OF PROTECTRESSES

Earth Ethics, Inc.

Earth Guardians

Ethical Farming Ireland

Facing Future Library

FacingFuture.TV

Fair Start Movement

FairFin

Family Farm Defenders

Feedback Global

Federation of Indian Animal Protrection Organizations (FIAPO)

Food Revolution Network

Forests & Finance Coalition

Friends of the Earth (England, Wales & Northern Ireland)

Friends of the Earth U.S.

Future Food 4 Climate

Gender Action

Global Vegan Inspiration

Great Plains Action Society

Green America

Green REV Institute

Greenpeace

Habitat Recovery Project

Harford County Climate Action

HEAL (Health, Environment, Agriculture, Labor) Food Alliance

Hive

Housing and Land Right Network – Habitat International Coalition

Humane Investing, LLC.

Humane Society International

Hungry Planet

In Defense of Animals

Independent

Indigenous Environmental Network

Institute for Agriculture and Trade Policy

Instituto Maíra

Jamaa Resource Initiatives

Kenya Small Scale Farmers Alliance

LBH ANGSANA

Lembaga Bentang Alam Hijau

Les Amis de la Terre-Togo

Madre Brava

Mighty Earth

Milieudefensie

Movimiento Rios Vivos/MARBE S.A., Costa Rica

New Roots Institute

North Carolina Environmental Justice Network (NCEJN)

Peace Point Development Foundation-PPDF

Peoples Climate Movement – NY

Planet Tracker

Plant Based Treaty

Plant-Based Health Professionals UK

Profundo

ProVeg International

Rainforest Action Network

Real Food Systems Youth Network

Rethink Your Food

Rinascimento Green

Seeding Sovereignty

Sikkim indigenous lepcha tribal association

Sinergia Animal

Socially Responsible Agriculture Project

Southern African Faith Communities Environment Institute, SAFCEI

Stand.earth

Strategies for Ethical and Environmental Development (SEED)

Stray Dog Institute

Sustainable Holistic Development Foundation (SUHODE Foundation)

The Center for Social Sustainable Systems

The People’s Justice Council

Trend Asia

Urgewald

Vegetarian Society of Denmark

World Animal Protection

 

 

Endnotes:

Related: 

Great Food Reset – Meat rationing has arrived! Banks Urged to Stop Financing Livestock Production – Over 100 climate groups pressure JPMorgan Chase, Citigroup & other banks to cut funding to meat & dairy companies

 

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