Home > Adani breaches environmental conditions again as SBI investors speak out against loan to the reckless project

Adani breaches environmental conditions again as SBI investors speak out against loan to the reckless project

4 December 2020

Adani Mining has been fined by the Australian Government for breaching environmental conditions in October, while building its coal mine in important wildlife habitat in central Queensland. This is yet another example of Adani’s disregard for environmental protection and provides another signal to the State Bank of India (SBI) that investing in the project is a major risk to its reputation.

News of the breach comes as SBI appears to have delayed its decision on the Adani loan, after Europe’s largest asset manager, Amundi, threatened to sell its SBI green bonds and a stunt at the India vs. Australia cricket match in Sydney generated widespread media coverage.

On the 30th of October 2020, the Department of Agriculture, Water and the Environment issued two infringement notices totalling $25,920 to Adani Mining Pty Ltd for not meeting a condition of its federal environmental approval.

The department found that Adani Mining Pty Ltd:

failed to implement the Species Management Plan by not undertaking pre-clearance surveys within the required timeframe prior to clearing on the site of the Carmichael coal mine, and
did not comply with the requirements to revise the management measures within the Species Management Plan as a result of pre-clearance surveys.

This provides yet another reason for SBI to refuse the loan for the Adani Carmichael project.

SBI’s own sustainability report states: “the Bank has integrated environmental considerations into its decision-making process, to mitigate the credit and reputational risks that can arise out of environmental deterioration. SBI insists on compliance with environmental best practices in its credit approval process.” Adani’s newest environmental breach is clearly not in line with SBI’s commitment.

The economic and environmental case against investing in Adani’s Carmichael coal mine continues to strengthen, with another environmental breach in the face of declining thermal coal value and intensifying climate change disasters. In order to protect its reputation, SBI must rule out funding Adani’s reckless and destructive coal mine.

Take Action: Let SBI and its investors know about Adani’s new environmental breaches now.

Take action

Tell SBI’s investors and investment partners to speak out and stop the loan after Adani breaks the rules again.

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Email to State Bank of India investors (Credit Suisse, Deutsche Bank, Credit Agricole, HSBC, JP Morgan, Mirae Asset Daewoo, Caise de Depot Quebec, Aviva Investors, State Street, Citi, CalPERS, Jupiter, Athene and Legal & General) and investment partners (German Development Bank, European Investment Bank, and MUFG)
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Your message to State Bank of India investors and investment partners (your name will automatically be added at the bottom)
I am writing to make sure you are aware of Adani’s recent failure to adhere to the conditions of its environmental approval for the Carmichael coal mine in Australia. In October this year, Adani was penalised by the Australian Government for breaching environmental conditions by recklessly clearing land to build its mine. [1] This reflects a pattern of behaviour and adds yet another reason why you need to speak out against the State Bank of India providing a A$1 billion loan to the Carmichael thermal coal project. If the loan goes ahead, your links to SBI will mean that you are exposed to one of the most destructive, controversial and financially marginal projects on Earth. The Carmichael thermal coal mine could become the biggest in Australia, and open up an entire new thermal coal basin as the world attempts to mitigate climate change. This obviously carries significant reputational and financial risks. Recently, Amundi made it clear to SBI that it will divest its SBI green bonds if SBI loans to Adani Carmichael. [2] This is an example of the positive engagement I seek from you now. Yours sincerely,
Email to State Bank of India
Subject (you can edit this)
Your message to State Bank of India (your name will automatically be added at the bottom)
Dear State Bank of India, I am extremely concerned about reports that SBI is considering providing a Rs 5000 cr loan to Adani for the development of the Carmichael coal project, especially after Adani once again demonstrated its disregard for environmental protection measures. I am writing to alert you to Adani’s recent environmental breaches, as this provides an additional reason to decline any loan to the Adani Carmichael coal project. Adani has been fined by the Australian Government for clearing land without surveying the area for species within an appropriate timeframe and also failed to revise its species management measures [1]. SBI’s own sustainability report states: “SBI insists on compliance with environmental best practices in its credit approval process”. Adani’s newest environmental breach is clearly not in line with SBI’s commitment. At a time when India is planning to phase out thermal coal imports, and with renewable energy already outperforming coal economically, we know that there is no financial or economic grounds for the loan to Adani. The Carmichael project is the object of years-long international controversy and resistance. It would increase shipping and industrial activity in the already stressed Great Barrier Reef World Heritage Area. The traditional owners of the land on which the mine would be dug, the Wangan and Jagalingou, continue to oppose the project. Over 85 companies have ruled out working on the project and no private banks are willing to fund it. Due to Carmichael’s negative impact on the climate and its lack of economic merit, any company associated with the project will be held accountable by the global community and will see its reputation profoundly damaged. I hope to receive your prompt reply that unequivocally rules out any further involvement in the Carmichael coal project. Sincerely,
Of course I want to get updates about this campaign from Market Forces!
- Of course I want to get updates about this campaign from Market Forces!