A recent study has revealed that massive funding is fueling a worrying rise in meat and dairy production worldwide. The research highlights a 9% increase in global meat output and a 13% rise in dairy production from 2015 to 2021. During a similar timeframe, from 2015 to 2022, the world’s leading 55 industrial livestock firms received an average of $77 billion in annual financial support. This influx of funds, however, seems to clash with some financiers’ own policies against deforestation.
The purpose of this credit, as the report points out, is to aid companies in their expansion efforts. Unfortunately, this has led to a significant and unsustainable surge in meat and dairy production globally. Martin Bowman, from the UK campaign group Feedback which produced the report, urges financial institutions to withdraw their support from industrial livestock companies immediately.
The report outlines numerous dangers associated with industrial animal farming. These include its role in climate change, deforestation, pollution, animal cruelty, loss of biodiversity, exploitation of workers, human health issues, and antibiotic resistance. To lower livestock emissions, the report suggests reducing animal protein consumption and farming fewer animals, especially in wealthier nations. A survey cited in the report indicates that to align with the Paris climate agreement goals, global livestock emissions must peak by 2025 and decrease by 61% by 2036, with more rapid and significant reductions needed in affluent countries.
The major financial backers of the world’s top industrial livestock firms include Bank of America, Barclays, and JPMorgan Chase, with Bank of America and Barclays being significant lenders to JBS, the livestock company with the highest emissions globally. Wells Fargo and ANZ bank are also highlighted for their substantial financial support to major dairy firms, contributing to significant greenhouse gas emissions.
Moreover, the report accuses some banks of bending their own rules against deforestation to fund Brazilian meat companies like Minerva Foods, Marfrig, and JBS, all of which are frequently linked to deforestation activities. Despite policies against financing operations leading to deforestation, these financial institutions have been found to provide substantial credit to these companies.
In response to these findings, Barclays and Rabobank have stated their commitment to combating deforestation and respecting human rights, with Barclays updating its financial policies to include restrictions on beef production in high deforestation risk areas. HSBC emphasizes the importance of distinguishing between direct banking customers and companies linked through shareholdings, asserting its commitment to addressing deforestation risks.
Marfrig and Minerva defend their environmental records, highlighting their efforts to audit their production processes and suspend suppliers involved in illegal deforestation. They argue that cutting off funding would impede progress towards a sustainable food system, which relies on investments in technology and innovation.
Bank of America, Wells Fargo, and JPMorgan Chase have chosen not to comment on the report’s findings. The International Meat Secretariat, however, asserts that the livestock industry is keen on growing responsibly to meet the increasing demand for essential proteins, adhering to stricter regulations and corporate social responsibility standards.