Friends of the Earth, Stop Formosa Plastics Coalition Fail Major Banks for Financing Big Plastic in New Scorecard
Bank of America, Chase and dozens of other financial institutions support plastics company responsible for environmental, human rights violationsWASHINGTON – Today, Friends of the Earth and the Stop Formosa Plastics Coalition released a scorecard report that evaluates and ranks major financial institutions based on their investments in Formosa Plastics Group and its subsidiaries.
Formosa Plastics, which creates nearly 3 million tons of single use plastics every year, has a long history of environmental destruction that’s adversely affected local ecosystems and communities. After ongoing pollution in Taiwanese communities, dumping toxic waste in Cambodia, and causing Vietnam’s worst industrial disaster, Formosa is expanding its operations in the United States. Their plant in Point Comfort, Texas has been releasing plastic pellets into Matagorda Bay for years and continues to fail weekly tests, violating a zero discharge mandate. Formosa Plastics also plans to expand operations in Baton Rouge and build a 2,400-acre petrochemical complex in St. James, Louisiana. Both sites are located in “Cancer Alley,” an area deemed high risk for disease due to the high density of industrial pollution. The company has largely avoided accountability and remains a serial polluter to this day.
Main points from the scorecard:
- The only banks of the 31 graded to receive a positive score were Danske Bank and DNB, for publicly excluding Formosa Plastics’ subsidiaries due to human rights and labor violations.
- Morgan Stanley and Wells Fargo received more neutral scores because, while there are no public exclusions for Formosa Plastics, show no evidence of publicly financing the company.
- Negative scores were given to a handful of banks, including Citi and several Taiwanese and Japanese financial institutions, for participating in loans to Formosa Plastics that ranged from $208 million to $1.5 billion.
- The worst scores were given to over 20 other banks – including major players like Bank of America, JP Morgan and Goldman Sachs – for current financing of Formosa Plastics Group and its subsidiaries.
“Formosa Plastics has dodged accountability for decades-long environmental and human rights abuses because financial institutions are continuing to fund their operations,” said Paloma Henriques, Senior Petrochemicals Campaigner at Friends of the Earth, “But we can’t afford to continue financing the pollution that’s destroying our environment and our bodies. Banks like Bank of America and Chase have to cut their ties with petrochemical companies.”
Quotes from Partners in the Stop Formosa Coalition:
From Sharon C. Lavigne, Founder and Director of RISE St. James:
“Our communities have been treated as sacrifice zones for far too long. When major banks fund this toxic industry, they fuel the pollution that chokes our air and taints our water. We refuse to let our families and our future be endangered for Formosa Plastics’ profit. It’s time financial institutions step up, withdraw their support, and protect our right to clean, healthy communities.”
From Diane Wilson, Founder and Director of San Antonio Bay Estuarine Waterkeeper:
“I’ve witnessed the pollution and destruction that Formosa Plastics has brought upon our community—the harm to our bays, the livelihoods of our fishermen, and the health risks faced by workers. At 76 years old, I’ve dedicated nearly half my life to this fight. As long as these banks continue to finance this environmental offender, I will not back down. It’s time for financial institutions to take responsibility and stand with the communities impacted by their investments.”
From Nancy Bui, Founder and V.P. of External Affairs at Justice For Formosa’s Victims:
“Formosa’s Ha Tinh Steel Plant is responsible for accidents that killed 16 workers, polluted Vietnam’s central coast, destroyed over 100 tons of fish and disrupted the lives of millions who depend on fishing. Nine years later, victims remain inadequately compensated, the environment remains poisoned, and over 20 environmental activists are still imprisoned. Despite this, Formosa continues to expand with global investments. Should wealth be built on the suffering of low-income communities and the sacrifice of children’s futures? The choice is up to these banks.”
For more information on Friends of the Earth and its coalition partners’ work to stop Formosa Plastics, please see the International Monitor Formosa Plastics Alliance. For more information on Friends of the Earth’s work on stopping petrochemical financing, see here.
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Communications Contact: Erika Seiber, [email protected]