ESG Enforcement Tracker

Key facts:

In November 2023, French NGO Sherpa, supported by Harvest, The Center for Climate Crime Analysis (CCCA), Repórter Brasil and Transparency International (together the NGOs) filed a complaint with the Parquet National Financier (the French National Prosecutor’s Office) against BNP Paribas, Crédit Agricole, BPCE and Axa (together, the French Banks).

The NGOs were seeking a criminal investigation into allegations of money laundering and receipt of stolen goods in connection with the French Banks’ financial support of companies contributing to deforestation in the Amazon and the profits that have been generated through this support.

Cattle farming is understood to be the main cause of deforestation in Brazil and across South America more widely. The NGOs allege that, despite this, the French Banks have continued to finance businesses operating in this industry with a record of illegal deforestation, land grabs from indigenous people and forced labour in their supply chains.

Sherpa reports that between 2013 and 2021 the French Banks made investments worth approximately US$70 million (which generated nearly US$12 million in profits) in major cattle companies including those which are, according to an analysis by the CCCA, involved in illegal deforestation and the intrusion into indigenous lands and protected forests.

This is the first criminal complaint against French banks based on the offences of laundering and receiving stolen goods due to their financial support for activities responsible for deforestation, and the profit derived from it.