BNP Tightens Amazon, Cerrado Deforestation Policy
February 15 2021 - 01:26PM
Dow Jones News
By Dieter Holger
BNP Paribas SA tightened its deforestation policy for companies
doing business in the Amazon rainforest region and the Cerrado, a
vast tropical savannah in South America where soy and cattle are
raised.
Paris-based BNP, one of Europe's biggest banks, said Monday that
it won't finance clients growing or buying soybeans or beef on land
converted or cleared after 2008 in the Amazon and will require
"full traceability" of soy and beef, both directly and indirectly,
by 2025. Since 2006, trade groups had annually renewed a voluntary
Amazon soy moratorium for deforested land that was extended
indefinitely in 2016.
BNP also said it would "encourage" its clients not to produce or
buy beef or soybeans from land converted or cleared after Jan. 1,
2020, in the Cerrado, which is one of the world's most species-rich
tropical savannahs. Agriculture has already cleared more than half
of the Cerrado's native vegetation, according to the Union of
Concerned Scientists.
"We are confident that similar commitments will be made by other
institutions in the near future to ensure a real positive impact on
the protection of biodiversity," Antoine Sire, head of corporate
engagement at BNP, said in prepared remarks.
Some environmental activists said BNP's new policies were
welcome, but the goals come too late and don't explain how it will
meet the targets.
"BNP Paribas has understood the importance of imposing a cut-off
date on soy traders, but no immediate demand is made to guarantee
improved practices over the next few years," Klervi Le Guenic,
campaigner at French nonprofit Canopée Forêts Vivantes, said. "As
it stands, BNP Paribas is giving traders 5 more years to clear
forests with impunity."
In response, a BNP spokesperson said the bank's policy is
broader than the soy moratorium among traders since it covers soy
producers and soy and beef traders in the Amazon and Cerrado.
"Our policy, covering those two sensitive areas, will have an
impact on large number of small producers, as they are part of
clients' supply chain," the spokesperson said.
As part of its policy to "encourage" clients to not produce or
buy beef or soy on land that was deforested after Jan 1., 2020, in
the Cerrado, the spokesperson said BNP "will closely monitor its
clients' progress against improvement in supply-chain traceability
and application of the Cerrado cut-off date."
"The fight against deforestation needs clear decisions and this
is what we are doing with our policy," the spokesperson said. "The
local situation is complex, so it is important to remain
realistic."
Write to Dieter Holger at dieter.holger@wsj.com;
@dieterholger
(END) Dow Jones Newswires
February 15, 2021 13:11 ET (18:11 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
BNP Paribas (EU:BNP)
Historical Stock Chart
From Feb 2024 to Mar 2024
BNP Paribas (EU:BNP)
Historical Stock Chart
From Mar 2023 to Mar 2024