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- Paper Pulp Mills - Uruguay
- Corporate Accountability and Human Rights
- Climate Change and Human Rights
Complaint Against CALYON over Controversial Uruguayan Papermills could Frustrate Financial Times Sustainability Prize
Thursday May 19, 2006 – London – The Financial Times published a few days ago a short-list of international financial institutions under consideration for their new “Sustainable Banking Awards”.[1] Amongst the pre-selected candidates of over 90 submissions, CALYON is one of five banks in consideration for the category: “Sustainable Banker of the Year”. Calyon, a French-based subsidiary of Crédit Agricole is slated to replace ING Group of the Netherlands as lead arranger of one of the controversial papermill investments taking place in Uruguay. Yesterday, 9 civil society organizations from around the world, filed a complaint against Calyon precisely for violations of environmental and social safeguards in the papermill project.[2]
The Sustainable Banking Awards were introduced this year in collaboration between the Financial Times and the International Finance Corporation, the private sector lending arm of the World Bank, which originally planned to support the Uruguayan mills but had to freeze lending when the Compliance Ombudsman discovered systematic irregularities with project compliance with World Bank policy. World Bank President Paul Wolfovitz came out strongly against IFC interests saying that the World Bank would NOT finance the mills until environmental and social impact studies prove that contamination levels are acceptable.
Calyon claims to be one of the most responsible French banks with respect to sustainable investments, and boasts that it is one of the first supporters of the Equator Principles. Yet the complaint filed yesterday by 9 organizations from around the world suggests that Calyon is complicit in the violations of the Equator Principles, and of violations to the IFC’s environmental safeguards. This begs the question, whether the IFC (in collaboration with the FT) could give a prize to a bank who is accused of violating the IFC’s environmental policies, precisely what this prize is supposed to uphold.
The local and international organizations which filed the complaint against Calyon yesterday are launching an international campaign to discredit Calyon for its support to the mills. The French bank now finds itself in a difficult position of trying to sell itself as a responsible investor and in hopes to get a very notorious prize, while community groups where it is investing are crying fowl and accusing Calyon of violating international environmental and human rights law.
The results of the FT Sustainable Banking Prizes will be announced in mid June, at the same time that public protests against Calyon are scheduled in Buenos Aires, Montevideo and Paris, a mere coincidence!
[1] To see prize information: http://news.ft.com/cms/s/86064476-e5a1-11da-b309-0000779e2340.doc
[2] To see full complaint: http://www.cedha.org.ar/en/initiatives/paper_pulp_mills/compliance-complaint-calyon.pdf
More Information
For more information contact:
Jorge Daniel Taillant
Center for Human Rights and Environment (CEDHA)
Tel. 54 3541 494 162
Cel. 54 9 351 625 3290
jdtaillant@cedha.org.ar
