Last checked at 
By Matthew Green
LONDON, Oct 28 (Reuters) - Campaigners called on Wednesday
for global banks to stop financing industrial activities driving
animal and plant species towards extinction, after a report
ranked 50 lenders involved in sectors that pose the greatest
threat to wildlife.
While European and U.S. banks have faced years of pressure
from regulators or environmental groups to act on climate
change, their role in financing economic activities that destroy
biodiversity is also coming under growing scrutiny.
Portfolio.earth, a network of researchers that published the
"Bankrolling Extinction" report https://portfolio.earth/wp-content/uploads/2020/10/Launching-on-28th-Oct.pdf,
said none of the lenders had adequate systems to limit the
impact of their loans on the web of animal and plant life that
supports human well-being.
"Banks are starting to realise that if they invest in
sectors that cause climate change, that will hurt their
returns," Liz Gallagher, director of portfolio.earth, told
Reuters. "Banks need to understand that the same holds true for
destroying biodiversity."
The report found that in 2019, the 50 banks provided loans
and underwriting of more than $2.6 trillion to sectors such as
industrial farming and fishing, fossil fuels and infrastructure
that scientists say are big drivers of biodiversity loss.
Kai Chan, an environmental scientist at the University of
British Columbia, and a leading author of a global study
published last year that found a million species are at imminent
risk of extinction, endorsed the findings.
"Imagine a world in which projects can only raise capital
when they have demonstrated that they will contribute
meaningfully and positively to restoring the planet's bounty and
a safe climate for all? That's the future this report envisions
and builds toward," he said.
Bank of America and Citigroup, identified
among the 10 biggest lenders, declined to comment, referring
Reuters to existing sustainability pledges. BNP Paribas
, also ranked highly, said the authors had not
contacted it or shared their methodology so it could not
comment.
HSBC, also ranked in the top 10, pointed out that
it had teamed up in August with climate change advisory firm
Pollination Group to create an asset management venture focused
on "natural capital", which seeks to put a value on resources
such as water, soil and air to help to protect the environment.
"Climate and nature are intricately linked, and the
financial services industry can help customers transform their
businesses to low carbon and also enable credible investments
that preserve and protect nature and biodiversity," said Daniel
Klier, global head of sustainable finance at HSBC.
Banks also pointed to their support for various biodiversity
initiatives, such as a new Task Force on Nature-Related
Financial Disclosures https://tnfd.info designed to boost
transparency among companies and the finance sector, but some
investors want more.
The report emphasised the risks associated with lending to
industrial agriculture, which is a major cause of biodiversity
loss, particularly when tropical forests in the Amazon basin or
Asia are cleared to grow commercial crops.
"This report from portfolio.earth confirms what our research
also shows, that banks globally still need to step up their game
and develop an approach to protect biodiversity," Peter van der
Werf, senior engagement specialist at Netherlands-based asset
manager Robeco, told Reuters.
(Reporting by Matthew Green; Editing by David Gregorio)
