Tone-Deaf Decision: Standard Bank Funds EACOP Amid Human Rights Crackdown
Standard Bank's highly controversial decision to fund the East African Crude Oil Pipeline (EACOP) under TotalEnergies' leadership has stirred up anger and disappointment within the StopEACOP movement. This decision overlooks extensive efforts by concerned shareholders over several years to address environmental and human rights concerns associated with this project.
Sim Tshabalala, CEO of Standard Bank, dodged direct inquiries about the bank's funding for EACOP during the recent Annual General Meeting (AGM). Despite being pressed on this matter, he only made ambiguous references to his company's support for the Paris Agreement. He conveniently ignored how investing in fossil fuel infrastructure like EACOP runs contrary to limiting global warming below 1.5°C - a key objective outlined by said agreement. Notably concerning is that Standard Bank had already approved financing for the controversial pipeline just days before despite deliberately leaving these details unspoken at the AGM itself.
Standard Bank has been engaging in a consistent pattern of deceitful actions. Just Share's recent AGM review uncovered that Standard Bank evaded inquiries about EACOP during annual meetings for the past six years by asserting they were still assessing its effects on society and the environment. Even though independent bodies, including Human Rights Watch and Global Witness, to name a few, have reported serious dangers, such as harm to local ecosystems and dislocation of communities and general climate of fear, Standard Bank persisted with their backing for the project.
Communities have undergone unfair land loss and damage to their livelihoods that saw the storm Hoima Court. Furthermore, human rights violations are currently transpiring - causing significant distress amongst environmental defenders who stand against EACOP's development; they face harassment, arrests, and beatings from Ugandan authorities. In light of such appalling atrocities that Standard Bank is now sponsoring through its financing efforts for the construction project in question, any claims regarding climate risk management or stakeholder engagement seem insincere at best.
Tshabalala exposed Standard Bank's greenwashing tactics, stating that the bank follows national climate plans yet is insufficient in meeting Paris Agreement objectives. The report on Standard Bank AGM roundup by Just Share further revealed that Standard Bank lacks meaningful targets for reducing its significant fossil fuel investment and only allocates 26% of energy financing towards renewable sources.
Standard Bank reversing its longstanding pledge to sustainability jeopardizes its financial prospects during the global shift towards renewable energy. Furthermore, this choice conflicts with other banks that have declined involvement in EACOP due to worries about climate change, environmental impact, and social implications.
Within the last month, 11 critics opposing the pipeline have been arrested in Uganda and Tanzania for their expressed concerns regarding the project. Alongside this, a key community leader from the Kingfisher area was forcibly abducted by Ugandan Peoples' Defense Forces. The recent announcement made by Standard Bank about its decision to finance EACOP during an ongoing crackdown on advocates supporting human rights protection along with environmental conservation raises several questions about their claims for rigorous fact-finding and understanding of particular experience(s) faced within these communities. This insensitive action highlights how detached they are towards reality, which exists at grassroots levels among such vulnerable groups or impacted individuals involved here, sadly undermining efforts taken so far!
Africa's biggest lender can no longer get away with making meaningless promises without following through. We call upon the global community to condemn this betrayal and demand legitimate efforts by Standard Bank towards climate action.
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