Belgian banks continue to invest considerable sums of money in companies that contribute to large-scale deforestation, according to a recent report by FairFin and Bos+. The report, entitled “How unregulated finance drives deforestation”, sheds light on the distressing impact of deforestation on the climate, biodiversity and local communities. Despite increasing pressure from environmental organizations, there is still no effective system to stop or reduce this destructive financing. As a result, financial institutions continue to contribute to the loss of crucial natural ecosystems.
The report emphasizes that unregulated financing is a major driver of deforestation worldwide. These activities not only have devastating consequences for the environment, but also undermine the fight against climate change. The loss of forests contributes to greenhouse gas emissions and destroys the habitats of countless plant and animal species. Furthermore, deforestation often deprives indigenous peoples and local communities of their livelihoods.
In the Netherlands, ING Bank is under increasing pressure because of its continued investments in fossil fuels. As we know, fossil fuels such as oil, coal and gas remain the largest source of CO2 emissions. This makes them a major factor in the deterioration of the climate. ING is therefore facing heavy criticism from environmental organizations such as Friends of the Earth Netherlands and Friends of the Earth Netherlands.
These organizations, together with 30,000 co-plaintiffs, have filed a lawsuit against the bank. The demand is that ING align its climate objectives with the Paris Agreement, which aims to limit global warming to a maximum of 1.5 degrees Celsius. They hope to force the bank to review its investment practices and take more responsibility for its share in climate change.
The summons was symbolically handed over at ING's head office in Amsterdam. This action sends a powerful message that there is an urgent need for change in the way banks invest in fossil fuels. The hope is that legal and public pressure will force banks like ING to make more sustainable investments and make a substantial contribution to the fight against climate change.
