The filers of a shareholder resolution at JPMorgan Chase on Indigenous rights have criticized the bank for canceling a scheduled meeting with Indigenous leaders from Peru’s Amazon region.
JPMorgan Chase, the biggest funder of oil and gas expansion in the Amazon, had agreed to meet the delegation in Washington, DC on Friday, April 26 and canceled just three days before, after the Indigenous leaders traveled thousands of miles to the United States. They want to discuss the impact of the bank’s investment in Petroperú, the state-owned oil company linked to hundreds of oil spills and undermining Indigenous rights in the Amazon region.
Shareholders United Church Funds, which have filed a resolution on Indigenous rights due to go to a vote at JPMorgan Chase’s annual shareholders meeting on May 21, said the bank was ignoring Indigenous voices.
Matthew Illian, director of Responsible Investing at United Church Funds said: “Unfortunately, this is an all-too-common experience for Indigenous communities, whose voices are being ignored, and this is why we filed a shareholder resolution to raise awareness about JP Morgan’s respect for Indigenous rights – or lack thereof.”
Olivia Bisa, President of the Autonomous Territorial Government of the Chapra Nation in the Peruvian Amazon also criticized the bank’s move:
“We are bitterly disappointed at JPMorgan Chase’s decision to cancel a scheduled meeting with us after we traveled from Peru to meet them. JPMorgan is funding oil spills and Indigenous rights violations in the Peruvian Amazon and I am being personally targeted for representing my community in opposing this. The bank does not even have the respect to listen to us.”
The delegation from Peru traveled to the U.S. for meetings with banks, including a meeting with Goldman Sachs on Tuesday, April 23 and Citi on Wednesday, April 24. During the visit they would share the conclusions of a new report Assessing Petroperú’s Financial, Legal, Environmental, and Social Risks that lays out the severe existing and potential risks and impacts of Petroperú in the Amazon. The delegation also attended a mock hearing in New York on the impact of Citi’s oil and gas funding on Black, Indigenous, and low-income communities.
JPMorgan Chase is under pressure on the Indigenous rights resolution. A similar resolution filed at Citi has attracted over 30% investor support for two years in a row and has become a source of embarrassment for the bank. Wells Fargo also faces a shareholder resolution on Indigenous rights at its annual shareholder meeting on April 30.
JPMorgan Chase has pumped almost $1.5 billion into the Amazon oil and gas sector. It has been part of a $1.3 billion syndicated loan and a $1 billion bond deal with Petroperú. The company’s pipeline through Peru’s Amazon has resulted in 87,751 barrels of oil spilled as of May 2023. A new report projects approximately over 3,500 oil spills nationwide by 2030, posing significant threats to ecosystems and Indigenous peoples.
Petroperú faces a financial crisis due to the high cost of oil for its refinery plant at Talara in northern Peru and JPMorgan Chase is reported to be involved in a $1 billion bond deal, along with Citi. Bank funding of Petroperú has been in the spotlight after investigations showed Santander and HSBC have violated their own policies by funding the company.
The leaders of Indigenous communities in the regions opposing oil drilling face lawsuits and the threats of violence. Petroperú wants to drill for oil in Block 64, a pristine area of the Amazon, in violation of U.N. principles on the rights of Indigenous people. The Achuar Nation has a current petition on the Interamerican Commission on Human Rights requesting the annulment of Block 64.
Quotes
“We have traveled from far away to explain to the banks that have invested in Petroperú that this company is trying to open new oil wells in our territories in order to pay them back. The desperation to pay back the money lent by the banks for the construction of their refinery is causing conflicts and even death threats among those of us who reject the activity.”
Senar Irar President of the Peruvian Federation of Achuar Nation, who also traveled to the U.S.
“The more than 85 communities that make up the integral territory of the Wampís Nation oppose the entry of oil operations into their territories. In our territory we suffered the irresponsibility of Petroperú in the past, which caused the largest oil spill in all of Latin America. Now we face a new threat. Petroperú needs to activate oil wells in our territory to pay the debts it has acquired from banks such as JPMorgan.”
Neil Encinas, leader for the Autonomous Territorial Government of the Wampís Nation, who also traveled to the U.S.
“For far too long, banks finance contentious clients such as Petroperú, which clearly threatens the rights of Indigenous peoples and the Amazon basin. Banks such as JPMorgan Chase must not ignore the calls of Indigenous peoples and cease the financing of companies expediting Amazon destruction and endanger the communities who inhabit and protect it.”
Mary Mijares, Fossil Finance Campaigner, Amazon Watch
“Investors are profoundly dismayed by JPMorgan’s failure to engage with the Indigenous communities directly impacted by its clients, despite its avowed commitment to respecting human rights. This refusal undermines crucial climate and human rights safeguards, presenting significant risks to investors and betraying global efforts toward sustainability.”
Courtney Wicks, Executive Director at Investor Advocates for Social Justice
