Archived press release

Barclays Finance of Rainforest Destruction Sparks Protest

15 February 2002

Barclays Group is the target of a nation-wide protest tomorrow [Saturday 16th February] organised by Friends of the Earth following revelations that the banking group financed a company that has caused massive damage to Indonesian rainforest.

Friends of the Earth is calling on Barclays Group to introduce a Forest Policy to ensure none of its future investments damage forests or abuse the rights of local communities, after revealing that Barclays hold more than £8 million of shares in Asia Pulp and Paper (APP) on behalf of its clients. The bank is also understood to have arranged and participated in loans to APP worth more than £400 million.

The pulp and paper company is accused by Friends of the Earth of being one of the most destructive paper companies in the world, responsible for clearing over 280,000 hectares of rainforest in Indonesia during the last 10 years, and planning to clear-cut another 300,000 hectares over the next 5 years - a total area four times the size of Greater London. Indonesian rainforest is particularly rich in wildlife, including endangered species such as the orangutan, tiger, rhino and elephants.

Friends of the Earth is also calling on Barclays to use its financial muscle to help persuade APP to stop destroying more forests. APP is one of the world's biggest corporate debtors, with a debt of £9 billion. It is currently in talks with creditors to reschedule these debts.

Ed Matthew, Forest Campaigner at Friends of the Earth, said:

“Barclays can use these debt negotiations as a real opportunity to put pressure on APP to prevent them from destroying Indonesia's precious forests. Barclays finance of APP has contributed towards the annihilation of one of the most wildlife rich forests on Earth.”

As well as destroying wildlife rich habitat, APP has been involved in numerous conflicts with indigenous peoples. In Sarawak, Malaysia, APP is involved in a joint venture pulp plantation which may force 20,000 indigenous people off their land.

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust