US Banks Undermining Net Zero Goals Through Livestock Financing
A recent report suggests that American banks are undermining their own climate commitments by providing financial support to meat, dairy, and feed corporations.
The report analyzed funding from 58 US banks, including loans and underwriting services like share and bond issuance guarantees, to animal protein and feed companies.
Monique Mikhail, the report’s lead author and director of the agriculture and climate finance program at Friends of the Earth, expressed concern, stating that banks are neglecting significant emissions associated with financing livestock-related activities despite committing to net-zero pathways.
The report links over 24 million metric tonnes of CO2 emissions, equivalent to the annual exhaust emissions from 5 million cars, to financing provided by major banks like Bank of America, Citigroup, and JPMorgan Chase to livestock and feed companies.
ALSO READ: Zimbabwean Businessman Seeks Protection After Exposing Forex Syndicate
Between 2016 and 2023, these banks collectively provided over $134 billion in financing to such companies, with a significant portion of this funding coming from the top three lenders.
Although these banks have pledged to reduce emissions associated with their client financing and achieve net-zero status by 2050, the report emphasizes the need to eliminate financing for livestock and feed industries for a more positive climate impact.
The report also raises concerns about potential underreporting of emissions by these companies, which could obscure the true extent of their contribution to banks’ greenhouse gas emissions footprints.