European banks, insurers, and pension funds blindly invest more than €8 billion annually in mining companies that violate human rights and environmental regulations, according to a new report from Oxfam International, 11.11.11, and Fair Finance International.
European banks are "blindly" investing in mining companies linked to pollution, human rights violations, and land grabbing, according to the report "Financing Critical Minerals but Failing Critical Safeguards."
The report shows that between 2016 and 2024, banks invested a total of €64 billion in mining companies that extract critical raw materials essential to Europe's clean energy future, including lithium, copper, nickel, and cobalt.
According to the report, European investors hold approximately €15 billion in bonds and shares of mining companies. In the report, researchers analysed eight major European banks and investors, including BNP Paribas, Crédit Agricole, Société Générale, ING, and Banco Santander.
Their scores range from just 2.6 to 4.0 on a scale of 10.
Pollution and social conflict
The report states that banks and investors have ties to four mining companies in the Democratic Republic of Congo, Mozambique, Brazil, and Peru. All of these companies are linked to environmental or human rights violations.
"The demand for minerals is often seen as the building blocks for green energy, but their supply chains are plagued by pollution and social conflict," emphasised Kees Kodde, project leader at Oxfam and Fair Finance International.
"This is not about a few bad apples, but about a system that leaves European investors out of harm's way because the rules are too weak," he said. "This not only leads to human rights violations but also exposes European banks and investors to financial risks and potential reputational damage."
