BlackRock, The Vanguard Group, T. Rowe Price Associates, and the California Public Employees’ Retirement System were all tied to a controversial timber venture.
Moral of this story? Don’t believe any of the bullshit spewing from the holes of the major international (and US-based national) financial enterprises. They will act like innocent little choir boys and publish their lies about sustainability, the climate crisis, biodiversity and all that, but they will always, first and foremost, follow the money.
Excerpt from this story from Grist:
Papua New Guinea has one of the largest expanses of tropical rainforest on the planet. But in recent years the island nation just north of Australia has seen a surge in deforestation from logging and mining, which has threatened to release large stores of carbon into the atmosphere.
Deforestation has left behind patches of bare land across the country, and indigenous communities bear the brunt of the environmental consequences. Many are wary of companies that clear the land without providing something to the local community in return. So in 2017, when the Malaysian timber company Maxland secured a permit to clear rainforest on the country’s Manus Island, it promised to plant three to five million rubber trees and said it would benefit nearby communities through jobs, royalty payments, and improved infrastructure.
Critics say that Maxland is a wolf in sheep’s clothing. According to a new report released this month by the human rights and environmental watchdog Global Witness, Maxland has not planted a single rubber tree, despite being two years into its five-year contract. Instead, the report claims that the company has prioritized illegal logging and exporting the island’s valuable hardwood timber, raking in millions of dollars in the process.
What’s more, Global Witness discovered that the company is linked to some of the world’s most prominent financial institutions, including BlackRock — the planet’s largest asset manager — which announced in January that it would place sustainability at the center of its investment approach and divest from companies that present significant climate-related risks. The non-governmental organization’s investigation found that BlackRock is among the top 20 shareholders of the three banks financing Maxland’s “mother company,” the Joinland Group, a Malaysian conglomerate with a history of logging projects in Papua New Guinea.
Norway’s $1 trillion Government Pension Fund Global, which just last week decided to blacklist large coal-dependent companies from its portfolio, is also among the top 20 shareholders of those banks — despite the fact that it publicly divested from a slew of companies tied to deforestation last year. Other financial supporters include The Vanguard Group, T. Rowe Price Associates, and the California Public Employees’ Retirement System (CalPERS). At the time of Global Witness’ analysis, these financial institutions had hundreds of millions of dollars tied to the banks that made Maxland’s Manus Island project possible.
“It’s broadly understood now that unregulated finance is contributing to climate change by propping up the fossil fuel industry, and the same is true of the financing of industries involving deforestation,” said Lela Stanley, the lead investigator for the Global Witness report. “Ordinary people whose savings are invested with these financiers may be unwittingly connected as well.”
