An order of nuns has referred to as on Citigroup to repent and alter its methods, accusing it of making an attempt to “minimise its position” in offering money to an organization concerned in controversial oil pipelines in North America.
Forward of Citi’s AGM on April 25, the Sisters of St Joseph of Peace, who personal a small stake within the financial institution as a part of their wider funding portfolio, filed a decision calling on the board to report on what it was doing to guard indigenous rights affected by its undertaking and company financing selections.
Within the decision, the nuns and three co-filers, that are additionally spiritual teams, mentioned Citi had “supplied over $5bn to [pipeline company] Enbridge, enabling the widely opposed Enbridge Line 3 and Line 5 pipeline reroutes”.
The pipelines, which carry oil from the US to Canada, have been linked to grease spills, whereas tasks to switch and reroute the traces have been opposed by indigenous communities, who say they’re damaging to their lands and methods of life.
Citi has urged shareholders to oppose the nuns’ resolution, saying it’s “unfaithful” it has financed the Enbridge Line 3 and Line 5 tasks.
However in a response filed to the regulator this month, the nuns claimed Citi supplied $5bn to Enbridge between 2016-2020, which “enabled tasks like Line 3 and Line 5”. Within the case of Line 3, they argued Enbridge didn’t apply for financing particularly for the undertaking and as a substitute used normal company financing to fund its operations.
“Citigroup’s . . . assertion makes claims about its financing actions associated to Enbridge Line 3 and Line 5 pipeline tasks in an try to minimise its position in enabling these tasks.”
Citi declined to remark.
The row is an indication that company financing has grow to be a brand new battleground for activists and shareholders who wish to cease banks from financing polluting industries.
Sr Susan Francois, who’s the treasurer of the Sisters of St Joseph of Peace, a Roman Catholic order primarily based within the US and UK, mentioned that whether or not it’s via undertaking financing or normal company lending, Citigroup has a “accountability to make sure its enterprise actions aren’t contributing to indigenous rights violations.
“Traders are involved to see Citigroup enabling tasks like Enbridge Line 3, Line 5, and oil and gasoline operations . . . that threaten our local weather, public well being, and Indigenous communities,” she added.
An analogous decision final yr acquired assist from the one-third of Citi shareholders that voted.
Arielle Swernoff, marketing campaign supervisor at local weather finance NGO Cease the Cash Pipeline, accused the financial institution of deceptive its shareholders by claiming it didn’t present financing to the Enbridge pipelines.
“The financial institution is aware of solely too effectively that the cash it has supplied to Enbridge has enabled the corporate to fund the damaging Line 3 and Line 5 tasks,” she mentioned.
In a regulatory submitting forward of the AGM, Citi mentioned: “In delicate sectors reminiscent of oil and gasoline, Citi evaluations purchasers to guage environmental and social insurance policies and practices and to establish if these purchasers’ operations could pose potential dangers to delicate areas reminiscent of indigenous communities or conventional lands, or areas of excessive biodiversity.”
Many banks have made internet zero commitments on carbon emissions and reduce financing for coal and different carbon-intensive tasks, however campaigners say they proceed to assist fossil fuels by way of normal company financing.
Earlier this yr, a gaggle of greater than 30 large buyers wrote to European banks urging them to focus extra on the local weather implications of their normal financing. Asset financing for particular oil and gasoline tasks represents solely eight per cent of whole money supplied to the trade, the group mentioned.
Extra reporting by Stephen Gandel and Patrick Temple-West
