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Greenpeace Claims HSBC Helped Financing Deforestation

By Wei ZhangIndonesia
1 min read
HSBC
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In this article (5)

Greenpeace International launched a new report on Tuesday, January 17, 2017, accusing British HSBC of supporting deforestation. The report stated that British HSBC provided financial services to palm oil companies that are causing rainforest destruction and human rights abuses in Indonesia.

The report titled “Dirty Bankers: How HSBC is financing forest destruction for palm oil“, claimed that HSBC has been involved in arranging US$16.3 billion of loans and credit facilities to six palm oil firms. In addition, the is also said to have raised US$2 billion bonds for these firms.

The palm oil companies listed in the report are Malaysian firm IOI; Indonesian Bumitama Agri and Salim Group; Singapore incorporated Goodhope Asia; Hong Kong-based and Singapore-listed Noble Group; and Korea’s Posco Daewoo Corporation.

Greenpeace argued that HSBC has violated its policies of responsible lending by helping to finance the above-mentioned companies.

Annisa Rahmawati, Greenpeace Southeast Asia senior campaigner said that although HSBC claimed to be a respectable bank with responsible policies on deforestation, “somehow these fine words get forgotten when it’s time to sign the contracts.”

Not only HSBC, the report also listed several other banks claimed to be related to case studies in the report, including Japan’s Sumitomo and Tokyo Mitsubishi banks; Singaporean bank DBS; and the Australia and New Zealand Banking Group (ANZ).

Despite the heavy criticism, the report did acknowledge HSBC as a “relatively progressive” bank that has shown a willingness to engage with criticism, and noted that the bank has a responsibility to set high standards for the rest of the sector.

Questions & Answers

Q.

What specific financial activities did HSBC reportedly undertake for the palm oil companies?

A.

HSBC reportedly arranged US$16.3 billion in loans and credit facilities for six palm oil firms. It also raised US$2 billion in bonds for these companies.

Q.

Which palm oil companies were named in the Greenpeace report as receiving financial services from HSBC?

A.

The report named Malaysian firm IOI, Indonesian Bumitama Agri and Salim Group, Singapore incorporated Goodhope Asia, Noble Group, and Korea’s Posco Daewoo Corporation.

Q.

Did the report mention any other banks involved in similar activities?

A.

Yes, the report also listed Sumitomo, Tokyo Mitsubishi banks, Singaporean bank DBS, and the Australia and New Zealand Banking Group (ANZ) as related to case studies.

Q.

How did the Greenpeace report characterise HSBC despite its criticism?

A.

The report acknowledged HSBC as a “relatively progressive” bank that has shown willingness to engage with criticism and a responsibility to set high standards for the sector.

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