105 Organizations 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.
“Industrial livestock production initially appeared to be the most modern way to produce vast amounts of food, but it quickly proved to be an illusion. It is wasteful and cruel,” said Ola Janus, Banks and Nature Campaign Lead at BankTrack. “In our reality of limited resources, it’s shocking that any respectable financial institution still views this outdated industry as a valuable investment rather than a liability.”
The groups argue that these banks can make a significant impact by shifting a relatively small amount of their capital away from high-emitting livestock corporations. By doing so, they would not only reduce their own carbon footprint, but also demonstrate a commitment to addressing the climate crisis.
“Alarmingly, our analysis shows that funding to these polluting companies is on the rise, despite scientists’ warnings that global livestock emissions need to start declining sharply,” said Martin Bowman, Senior Policy and Campaigns Manager at Feedback Global. “Industrial livestock companies are incompatible with a safe future for our planet, so it is time for banks and investors to turn off the taps and stop providing the finance that is enabling them to grow.”
Stephanie Dowlen, Forest & Finance Campaigner at Rainforest Action Network further warns that “Major banks must stop financing industrial beef production which is driving deforestation and land grabbing in the Amazon. Cattle ranching is pushing this critical ecosystem to an irreversible tipping point and significantly reducing the world’s capacity to combat climate change.”
This letter is part of a broader global campaign to hold major banks accountable on their funding for industrial livestock corporations. The campaign includes direct outreach to and meetings with bank executives, social media, grassroots mobilization, as well as paid advertising. Grassroots activists will focus on amplifying the letter’s messages to JP Morgan on September 17, 2024, Bank of America on September 18, 2024, and Citigroup on September 19, 2024 through direct outreach to bank officials and through social media.
Contact: Holly Shulman for Friends of the Earth U.S. at [email protected] and (603) 715-4321
Key Links & Background Information:
- Open letter to the private banking sector on its role in fueling the climate crisis by financing industrial livestock production, [DATE], with list of signatories
- Bull in the Climate Shop: Industrial livestock financing sabotages major U.S. banks’ climate commitments, Friends of the Earth U.S., April 2024.
- Still Butchering the Planet: The big-name financiers bankrolling livestock corporations and climate change – 2024 update, Feedback, March 2024