Groups Say World's Biggest Banks React
to Global NGO Pressure With "Equator Principles;
"
Groups View Principles as Deeply Flawed,
But Are Heartened by Movement by Big Banks
Rainforest Action NetworkJune 3, 2003
With the world's biggest and most influential private banks set to announce on June 4 a unified commitment to human rights and the environment, leading experts and NGOs say the Equator Principles don't address the core issue: whether or not banks invest in projects that destroy endangered ecosystems and native communities.
"The Equator Principles are proof that banks are feeling the heat from environmental groups worldwide," said Ilyse Hogue of Rainforest Action Network. "Unfortunately the Equator Principles won't do anything to prevent banks from bankrolling the oil and logging companies that are kicking people out of their homes to destroy the rainforests in places like Ecuador."
NGOs were quick to point out the irony that the Principles would still have allowed the banks to finance the infamous OCP oil pipeline that destroyed rainforests in the country of Ecuador, which means "equator" in Spanish.
The banks will announce the principles on Wednesday, June 4 at a conference for the International Finance Corporation, the private investment arm of the World Bank Group. The banks leading the effort; ABN Amro (Netherlands), Barclays (UK), Citigroup (US) and West LB (Germany); have all been subjects of successful advocacy campaigns as a result of their investments in environmental destruction.
Pressure campaigns against banks by NGOs and customers have been gaining momentum worldwide in the past few years. Facing strong pressure from customers and NGOs in Europe, the Dutch bank ABN Amro committed to a full phase out of lending to extractive industries that operate in endangered ecosystems. After three years of a pressure campaign, RAN is now in negotiations with Citigroup over the subject of an ongoing campaign that asks them to meet or beat ABN's policy. Germany's West LB came under fire last year for being the lead funder, with Citi, of the OCP oil pipeline that is destroying rainforest "hotspots" in Ecuador.
A background statement released by NGOs argues that the Equator Principles are inadequate because they don't require transparency, the protection of human rights, or the conservation of endangered ecosystems like rainforests. Leading NGOs in January released the "Collevechio Declaration" which outlines the steps they see as necessary to promote environmental and social protection.
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