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Environmental Paper Network’s Pulp and Paper policy assessment table launched on BankTrack website
‘In the Red 2020’ is an assessment of the pulp and paper financing policies of 68 financial institutions
Banks and Pulp & Paper - Policy Assessment
nature@banktrack.org
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Sappi Kirkniemi paper mill, Finland. Photo: WikiCommonsIn early 2020, the Environmental Paper Network (EPN), of which BankTrack is a member, evaluated the investment policies of 68 major financiers of the pulp and paper industry for the second time. They benchmarked the policies against 14 absolute minimum criteria that all financial institutions should require their clients, investments, and business partners to adhere to in order to preserve forests and protect the environment, respect human rights and safeguard the interests of communities. These “Red Lines” are fully described in the Green Paper, Red Lines report, which is a translation of EPN’s Global Paper Vision for use by financiers. They include requirements for legality, to exclude any deforestation and forest degradation, and to respect customary land rights.
The assessment found that most Red Lines are still poorly protected by financial institutions. On average, only 6% of the banks scored “well protected” for a Red Line criteria. The highest scores were obtained for the Red Line requiring legality and respect for human rights, for which 22% and 26% of banks scored “well protected”, respectively. The worst scores were obtained for the Red Lines requiring a full Environmental Impact Assessment and no introduction of high-risk species (which includes genetically engineered trees). None of the financial institutions scored “well protected” for these criteria.
Recommendations
Although the scores of each of the 68 financial institutions assessed by the report widely vary for each Red Line, none of them have policies in place that fully protect the Red Lines. This is extremely worrying. The Red Lines form only the minimum requirements for pulp and paper companies to avoid social and environmental harm. As stated in Green Paper, Red Lines, “Companies that do not cross these Red Lines are not automatically deemed to be operating in a sustainable manner. However, companies that do cross these Red Lines, and financiers providing support to them, are highly likely to be the target of campaigns by civil society organisations."
EPN and BankTrack therefore recommend that each financial institution active in financing the sector should:
- If it has not already done so, create and make publicly available a full investment policy framework for the pulp and paper sector;
- Examine EPN’s assessment of its policy and improve it where necessary, to make sure they avoid becoming financially involved in any companies or projects that breach the Red Lines;
- Have consultation meetings with concerned groups in the process of policy formation;
- Maintain open communication with civil society organisations and community groups;
- Publish their policy through a range of media; and
- Ensure that all policies are implemented through adequate due diligence procedures.
Green Paper, Red Lines is strongly supported by more than 150 civil society organisations worldwide. We hope that the finance sector will use it to work with us to move the pulp and paper industry towards a sustainable future.
For more detailed information on the policies and the scores of each financial institution, see the overview table of the In the Red scores below.
Overview of bank policy scores 'In the Red' report
BankLast update
Country
Equator Principles
Ensure Legality
Ensure ESIA for mills and plantations
Ensure FPIC
Respect Human Rights
No forest degradation and deforestation
Protect peat
No persistent pollution
No corruption and tax evasion
Respect Indigenous Rights and customary land use rights
No forced resettlement
Protect endangered species
No high-risk species
No fire
Corporate association / scope of the policy
Details
ABN AMRO
2020-03-01
NLD
11009998910998999
Agricultural Bank of China
2020-03-01
CHN
-1021111111111110
Agricultural Development Bank of China
2020-07-02
CHN
-1111111111111110
Banco Bradesco
2020-07-12
BRA
10999888888888890
Banco de Chile
2020-07-01
CHL
-1111111102111110
Banco de Crédito y Inversiones
2020-07-12
CHL
-1111111111111110
Banco do Brasil
2020-03-01
BRA
9989888999788899
BancoEstado
2020-03-01
CHL
-1020011111111110
Bank of America
2020-03-01
USA
10989887898878980
Bank of China
2020-03-01
CHN
9987888888888890
Bank of Communications
2020-03-01
CHN
-1021111001111110
Bank of East Asia
2020-07-12
HKG
-1021021102111110
Bank of Taiwan
2020-07-12
TWN
9888978888888890
Barclays
2020-07-12
GBR
998809997980
BNDES
2020-07-12
BRA
-1012021102111110
BNP Paribas
2020-03-01
FRA
11000999000998999
BTG Pactual
2020-07-12
BRA
-1021021101211101
Caixa Economica Federal
2020-07-12
BRA
9978978888888890
China Construction Bank
2020-07-12
CHN
-1021111111111110
China Development Bank
2020-07-12
CHN
-1021021102111110
China Everbright Bank
2020-07-12
CHN
-1021111102111110
China Exim Bank
2020-07-06
CHN
-1012111021111110
China Merchants Bank
2020-07-12
CHN
-1021111111111110
China Minsheng Bank
2020-07-06
CHN
-1021111102111110
Citi
2020-07-12
USA
10999897988888799
Commerzbank AG
2020-07-12
DEU
-1020001910202020
Crédit Agricole
2020-07-12
FRA
10999999798798790
Credit Suisse Group
2020-07-06
CHE
9979989888889100
DBS Bank
2020-07-06
SGP
9999998800998990
Deutsche Bank
2020-07-06
DEU
-8990101112020
First Abu Dhabi Bank (FAB)
2020-07-06
ARE
9978888888888890
Goldman Sachs
2020-07-06
USA
-1020112101121011
Hang Seng Bank
2020-07-12
CHN
10997978998888890
HSBC
2020-07-06
GBR
10988987898788899
Hua Xia Bank
2020-07-06
CHN
-1021111111111110
Industrial and Commercial Bank of China (ICBC)
2020-07-06
CHN
-1021021111111110
Industrial Bank of China
2020-07-06
CHN
9987888978888890
Itaú-Unibanco
2020-07-06
BRA
9978978897888890
JPMorgan Chase
2020-07-12
USA
9980897898887989
Land Bank of Taiwan
2020-07-12
TWN
-1111111111111110
Mitsubishi UFJ Financial Group (MUFG)
2020-07-12
JPN
9979997889887890
Mizuho
2020-07-12
JPN
9991109900988890
Morgan Stanley
2020-07-12
USA
-1011112011112020
NatWest
2020-07-12
GBR
10990898988987980
Nordea
2020-07-12
FIN
9989888898878890
Norinchukin Bank
2020-07-12
JPN
9978978888888890
O-Bank
2020-07-12
TWN
-1111021111111110
People's Bank of China
2020-07-12
CHN
-1111111111111110
Ping An Bank
2020-07-12
CHN
-1021111111111110
Postal Savings Bank of China
2020-07-12
CHN
-1021111102111110
Rabobank
2020-07-12
NLD
10999999888989990
Santander
2020-07-12
ESP
10988988797897980
Scotiabank
2020-07-12
CAN
9888978888888890
Shanghai Pudong Development Bank
2020-07-12
CHN
-1021111111111110
Shinkin Central Bank
2020-07-12
JPN
-1111111111111110
Skandinaviska Enskilda Banken (SEB)
2020-07-12
SWE
9978988998898890
Standard Chartered
2020-07-12
GBR
10999999888888999
Sumitomo Mitsui Banking Corporation (SMBC)
2020-07-12
JPN
9978987888889990
Taiwan Business Bank
2020-07-12
TWN
-1111111111111110
Wells Fargo
2020-07-12
USA
9979788889878899
Explanation
This table lists banks that have adopted each criterion fully ( ), partially ( ), or that have not adopted ( ). Click on 'Details' for the rationale of this assessment for each bank.
Related banks
ABN AMRO Netherlands
active
Agricultural Bank of China China
active
Banco Bradesco Brazil
active
Banco del Estado de Chile Chile
active
Banco do Brasil Brazil
active
Banco Santander Spain
active
Bank of America United States
active
Bank of China China
active
Bank of Communications China
active
Barclays United Kingdom
active
BNP Paribas France
active
BTG Pactual Brazil
active
Caixa Econômica Federal Brazil
active
Cathay United Bank Taiwan, Republic of China
active
China CITIC Bank China
active
China Construction Bank China
active
China Development Bank China
active
China Everbright Bank China
active
China Merchants Bank China
active
China Minsheng Bank China
active
Citi United States
active
Commerzbank Germany
active
Crédit Agricole France
active
Credit Suisse United Kingdom
active
DBS Singapore
active
Deutsche Bank Germany
active
First Abu Dhabi Bank (FAB) United Arab Emirates
active
Goldman Sachs United States
active
HSBC United Kingdom
active
Industrial and Commercial Bank of China (ICBC) China
active
Industrial Bank China
active
Itaú-Unibanco Brazil
active
JPMorgan Chase United States
active
Mitsubishi UFJ Financial Group (MUFG) Japan
active
Mizuho Financial Group Japan
active
Morgan Stanley United States
active
NatWest Group United Kingdom
active
Nordea Finland
active
Norinchukin Bank Japan
active
Ping An Bank China
active
Postal Savings Bank of China China
active
Rabobank Netherlands
active
Scotiabank Canada
active
Shanghai Pudong Development Bank China
active
Shinkin Central Bank Japan
active
Skandinaviska Enskilda Banken (SEB) Sweden
active
Standard Chartered United Kingdom
active
Sumitomo Mitsui Banking Corporation (SMBC) Japan
active
Sumitomo Mitsui Trust Holdings Japan
active
Wells Fargo United States
active
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