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