Environmentalists level charges against Citigroup
Date: 15-Nov-02
Country: USA
A full-page display ad in Wednesday's New York Times, replete with pictures of fire-ravaged forests and smoking industrial chimneys, posed the question: "Did you know that someone is using your Citigroup credit card without your authorization?"
The ad placed by Rainforest Action Network is part of a campaign against the financial firm, launched a couple of years ago, which charges that Citigroup used customers' dollars to profit from projects that destroy endangered forests, displace local communities, and accelerate global warming.
RAN also urged readers to cut their Citigroup credit cards to show they disagree with the company's practices.
"We agree with many of the causes that RAN supports. We object to the group's strategy of spreading false information to get their message across," Citigroup said in a statement.
A Citigroup spokeswoman declined to elaborate on whether the financial institution was weighing any counter advertising or legal action against RAN.
Michael Brune, campaigns director for RAN, told Reuters that there was publicly available information showing Citigroup has arranged financing for several projects that have harmed the environment, like Peru's Camisea gas project.
Other projects that RAN links to Citigroup include the Oleoducto de Crudos Pesados, a pipeline, in Ecuador; the Ratchaburi power plant in Thailand; the Gobe oil fields in Papua New Guinea; and cutting ancient redwoods in the California Headwaters Forest.
"RAN itself has acknowledged that it is targeting Citigroup primarily because we are a large company with an extensive customer base, not because of any particular problem with our record," Citigroup added in its statement Wednesday.
On its Internet site, Citigroup says it analyzes the potential environmental impact of its business activities and takes action to either reduce environmental risk or promote benefits.
The financial house also has an Environmental Affairs unit, which keeps track of environmental regulatory and legislative trends that may have an impact on industries of interest to Citigroup and its clients.
Brune said there have been meetings between both sides and that Citigroup had agreed to study RAN's recommendations. RAN is hoping the company will come out with a new environment-oriented policy in a few months.
RAN has launched other campaigns against major U.S. household names like Home Depot Inc. . About three years ago, RAN urged the home improvement giant to stop buying wood from endangered forests.
Eventually, Home Depot ceased on that practice. RAN claims it was largely due to its awareness campaign.
