SMBC's Refusal to Answer Open Letter Raises Questions about Social Responsibility in EACOP Project

Sumitomo Mitsui Banking Corporation (SMBC), one of the three major banks in Japan, has refused to answer about its involvement in the East Africa Crude Oil Pipeline (EACOP) project. Despite playing a crucial role as one of the key financial advisors to TotalEnergies' EACOP project, SMBC responded to Fridays for Future Japan with a general explanation of its environmental and social policies.

This response comes when project-affected communities in Uganda and Tanzania face myriad challenges resulting from the EACOP project, including irregular land acquisition, human rights violations, and loss of livelihood. The vague response has led to questions about whether SMBC is trying to shirk its social responsibility.

A recent Finance Risk Update on the controversial EACOP project highlights the mounting opposition to the project in Uganda, Tanzania, and globally, citing significant financial, reputational, and legal risks. It’s imperative that SMBC realise that these risks significantly impact its reputation and future investments. See here the letter as was originally sent to the Fridays for Future Japan.