World Pilots Day — The Inside Story

The absolute responsibility cast upon the pilot inevitably carries with it absolute and final authority from take off to landing.

by Ruwantissa Abeyratne

“Pilots are not born; they are forged through dedication, passion, and relentless pursuit of their dreams.”

World Pilots Day falls each year on 26th April.  This is the day we remember in particular that these are the individuals who enable us to witness and  experience the delight and wonder of the four corners of the world.  They are in command from the moment of truth when we defy the force of gravity and lift off into the heavens, to safely depositing us back on earth at our destination.

[ Photo: Oskar Kadaksoo/ Unsplash]

To any of us travelling by air, I am sure it is an inspiration, just prior to boarding the aircraft,  to watch the confident pilots at the gate dressed impressively in their uniforms smiling and chatting with the gate staff before they precede us to the aircraft.  Passengers waiting to board intuitively know that they are no pushovers, but highly trained professionals who have undergone thousands  of flying  hours and rigorous training.  Not only do they exude confidence but they also display a certain glamour that make us  passengers feel ordinary.

An Endangered Species?

With the growing demand for air transport the exponential demand for airline pilots is increasing. In 2019 Boeing issued an official statement that demand for air travel was growing so rapidly that 800,000 new pilots were expected to be needed over the next 20 years.  According to this forecast the biggest need was in the Asia-Pacific region, where an improving economy in China has resulted in more people booking flights. Furthermore, Boeing stated that more people were are flying in the U.S. albeit at the same time, experienced pilots were reaching the mandatory retirement age of 65 years. Even before COVID-19 struck the world, there was an acute shortage of pilots looming over the horizon.

As early as 2014 a commentator wrote in the context of the United States: “Over the next 20 years, the United States airline industry is expected to hire in excess of 95,000 pilots. This hiring should be the result of new aircraft growth, pilot retirements, and pilot attrition from the industry for reasons other than retirement. In addition, government regulations may also cause an increase in the number of new pilots required”. It must be noted that the mandatory retirement age for pilots in  the United States, is  65, “while at the same time, the barriers to entry to earning an FAA airline transport pilot (ATP) certificate have arguably never been higher, with training costs increasing and new minimum-hour requirements taking effect in 2013” .

How Does One Become a Pilot?

Like in any other important profession such as medical, legal, accounting et. al, a pilot has to be properly licensed. A commercial pilot’s license affords the pilot to transport passengers and cargo by air for remuneration which a private pilot’s license does not grant. Eligibility requirements for airline pilots are both standardized and harmonized globally by the Convention on International Civil Aviation (Chicago Convention). Article 29 of the Convention obligates flight crew members to carry their appropriate licenses on board the aircraft they operate. Pilots have to be proficient in the language requirements for the operation of aircraft as well as being medically fit and certified before entering the flight deck.

Compliance and Discretion

For us to travel safely in the air, pilots are required to adhere strictly to two critical words: standardization; and harmonization. Standardization simply means compliance and harmonization means global consistency. This means, similar to doctors (surgeons included), lawyers, accountants and the like, pilots must strictly follow the rule book. Where harmonization is concerned, there could be a slight difference as pilots are subject to globally agreed upon rules, irrespective of territorial or jurisdictional differences. 

Within this broad scope the pilot has to perform several ineluctable functions including but not limited to: creating a flight plan, considering aircraft performance, altitude and weather conditions; checking the aircraft before every flight (engines, radars, navigation systems, etc); ensuring cargo weight doesn’t exceed aircraft limits; communicating with air traffic control to ensure safe takeoff and landing; ensuring the aircraft has adequate fuel supplies; monitoring cockpit instruments like altimeters and speed indicators and report any malfunctions; checking the airplane’s position, weather conditions and air traffic regularly during the flight and determining change of path when needed; working closely with flight attendants to ensure all passengers follow safety rules while being onboard; and filling out reports about the flight and the status of the aircraft after landing 

The licensing State must not permit the holder of a license to exercise privileges other than those granted by that license. The preeminent privilege for a commercial pilot is the ability to function as pilot in command after a certain period of flying experience.  Within the scope of this privilege there is considerable discretion given to the pilot’s judgment. Under Article 6 of the Tokyo Convention of 1963 the pilot when he/she is aircraft commander may, when he/she has reasonable grounds to believe that a person has committed, or is about to commit, on board the aircraft, an offence or act contemplated in the treaty  impose upon such person reasonable measures including restraint which are necessary: (a) to protect the safety of the aircraft, or of persons or property therein; or (b) to maintain good order and discipline on board; or (c) to enable him to deliver such person to competent authorities or to disembark The aircraft commander may require or authorize the assistance of other crew members and may request or authorize, but not require, the assistance of passengers to restrain any person whom he is entitled to restrain. Any crew member or passenger may also take reasonable preventive measures without such authorization when he has reasonable grounds to believe that such action is immediately necessary to protect the safety of the aircraft, or of persons or property therein.

Articles 8, 9 and 10 of the Tokyo Convention grant further privileges to the pilot in command in that The aircraft commander may, in so far as it is necessary for the purpose of Article 6, disembark in the territory of any State in which the aircraft lands any person who he has reasonable grounds to believe has committed, or is about to commit, on board the aircraft an act contemplated in Article 1, paragraph 1(b). The aircraft commander is required to report to the authorities of the State in which he disembarks any person pursuant to Article 9, the fact of, and the reasons for, such disembarkation. Article 9 provides that the aircraft commander may deliver to the competent authorities of any Contracting State in the territory of which the aircraft lands any person who he has reasonable grounds to believe has committed on board the aircraft an act which, in his opinion, is a serious offence according to the penal law of the State of registration of the aircraft.

The aircraft commander must, as soon as practicable and if possible before landing in the territory of a Contracting State with a person on board whom the aircraft commander intends to deliver in accordance with the preceding paragraph, notify the authorities of such State of his intention to deliver such person and the reasons therefor. Furthermore, the aircraft commander is required to furnish the authorities to whom any suspected offender is delivered in accordance with the provisions of this Article with evidence and information which, under the law of the State of registration of the aircraft, are lawfully in his possession. For actions taken in accordance with the Tokyo Convention, neither the aircraft commander, any other member of the crew, any passenger, the owner or operator of the aircraft, nor the person on whose behalf the flight was performed should be held responsible in any proceeding on account of the treatment undergone by the person against whom the actions were taken.

Medical fitness

Procedures and requirements for the assessment of medical fitness are contained in the Manual of Civil Aviation Medicine (Doc 8984). IATA in its guidelines for flight crew requires the following: “the absence of any medical condition or any suspected medical condition that may lead to any form of acute functional incapacity; the absence of any existing or former medical condition – acute, intermittent or chronic – that leads or may lead to any form of functional incapacity; the absence of any use of medication or substances which may impair functional capacity; minimal requirements to the necessary functions such as vision and hearing” .

In order to satisfy the licensing requirements of medical fitness for the issue of various types of licenses, the applicant must meet certain appropriate medical requirements which are specified as three classes of Medical Assessment:  Third Class: This is the most basic of the medical exams. It is required for those attempting to earn a student pilot license, recreational pilot license, and private pilot license.; Second Class: This first class medical certificate is required in order to earn a airline transport pilot certificate.

The applicant must not suffer from any disease or disability which could render that applicant likely to become suddenly unable either to operate an aircraft safely or to perform assigned duties safely. Furthermore, the applicant must have no established medical history or clinical diagnosis of: a) an organic mental disorder; b) a mental or behavioral disorder due to psychoactive substance use; this includes dependence syndrome induced by alcohol or other psychoactive substances; c) schizophrenia or a schizotypal or delusional disorder; d) one is required for anyone attempting to earn their commercial pilot license; First Class: A mood (affective) disorder; e) a neurotic, stress-related or somatoform disorder; f) a behavioral syndrome  associated with physiological disturbances or physical factors; g) a disorder of adult personality or behavior, particularly if manifested by repeated overt acts; h) mental retardation; i) a disorder of psychological development; j) a behavioral or emotional disorder, with onset in childhood or adolescence; or k) a mental disorder not otherwise specified; such as might render the applicant unable to safely exercise the privileges of the license applied for or held.

Liability and Responsibility

According to accepted principles of law as laid down by international convention, it is incontrovertible that the final responsibility for the safe operation of an aircraft lies with the pilot. The Chicago Convention provides that the pilot-in-command must be responsible for the operation and safety of the aircraft and for the safety of all persons on board, during flight time.

This presumption of responsibility has influenced most States which have signed or ratified the Convention and is reflected clearly in their air navigation laws. These laws have been have been observed to list requirements which any pilot with a sense of good airmanship would naturally comply with. Failure to comply with such regulations has been clearly interpreted to be bad airmanship which renders the pilot liable for prosecution on a criminal charge.  In any event, the fundamental postulate which imposes prima facie responsibility on the pilot has been accepted as a general principle of liability of the pilot which sets the base for determining his legal status and responsibility.

The legal responsibility placed on the commander of the aircraft is therefore inextricably linked with the expectation of good airmanship. Airmanship has been regarded as an indefinable quality and has been used to describe the intuitive faculty of the pilot where he concerns himself with what is right or wrong in the operation of an aircraft which is acquired by sustained experience in flying.  Whilst it is:

the proper conduct of the normal flight to avoid creating hazard, it is also the ability to overcome potential hazard where failure has occurred. With procedures laid down, drills to cover eventualities and the installation of duplicated equipment it is not surprising that crew error is seen as an element in so many accidents.

The above analysis seems to suggest that the pilot should be held absolutely responsible for the safety of his flight not only as he lays claim to special expertise but also as he has been given the benefit of sophisticated duplicate equipment which makes his job easier. Thus, the stringent legal responsibility placed upon the pilot is seen to be further justified.

The absolute responsibility cast upon the pilot inevitably carries with it absolute and final authority from take off to landing.  The status of the pilot therefore entails far reaching consequences making an instance of his negligent act open to be interpreted as a dangerous and unlawful act which could justify a charge of manslaughter in the least.  Criminality of the act of the pilot lies quite independently of the incontrovertible liability in negligence  which would follow from such act.

Conclusion

The above notwithstanding, there are instances where standardization and harmonization cease to apply, and that is when the safety of those on board become the most critical factor. On January 15, 2009, US Airways Flight 1549, a regularly scheduled service from New York City (LaGuardia Airport) to Charlotte and Seattle in the United States, encountered a significant incident. The Airbus A320 aircraft, which was operating the flight, collided with a flock of birds shortly after takeoff from LaGuardia, resulting in a complete loss of engine power. Facing a critical situation due to their proximity to available airports and the aircraft’s low altitude, pilots Chesley “Sully” Sullenberger and Jeffrey Skiles made the decision, despite the numerical protocols they had to follow in the “rule book”   to skillfully glide the plane for an emergency landing in the Hudson River near Midtown Manhattan.

Captain “Sully” will go down in the annals of commercial aviation as a hero whose spontaneous wisdom and professional competence saved all those on board. This was a quintessential example of the emergency mantra of aviation which is known as ANC (aviate, navigate, and communicate) as well as the ultimate responsibility of an aircraft commander to secure the safety of passengers on board which was exemplified by Captain Sully who walked up and down, twice, alone in a sinking aircraft to make sure there was no one left behind after all passengers had sought the solace of the two aircraft wings that served as a platform on the frigid Hudson river until helped arrived. Captain Sully has left the pilots of today and the future with a noble legacy when he said: “ Each generation of pilots hopes that they will leave their profession better off than they found it”

This fills us with hope and inspiration.

Dr. Abeyratne teaches aerospace law at McGill University. Among the numerous books he has published are Air Navigation Law (2012) and Aviation Safety Law and Regulation (to be published in 2023). He is a former Senior Legal Counsel at the International Civil Aviation Organization.

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India’s Billionaire Wealth Is on Display as Nation Votes

India’s Ambani family has enjoyed flaunting its obscene wealth, a perfect reminder in the midst of an election, of the economic inequality afflicting voters.

by Sonali Kolhatkar

There are several exercises in extremes playing out in India right now. Nearly a billion people are voting in elections that will last into early June, braving record-high temperatures to cast ballots. Against this backdrop, Asia’s richest man, Mukesh Ambani, is throwing what will likely be the world’s most expensive wedding for his youngest son.

Although they appear unrelated, these phenomena are intimately linked.

PM Modi with Mukesh Ambani, Ratan Tata, Anand Mahindra, Sunil Bharti Mittal and Gautam Adani [File Photo]

With 1.4 billion people, India now has the largest population of any nation in the world, surpassing China in 2023. It is also the world’s largest democracy, a title it has held since the end of British colonial rule in 1947. India’s secular democracy has eroded, particularly since 2014 when the Bharatiya Janata Party (BJP)’s leadership ushered in a dawn of Hindu supremacy in a nation that is home to many different faiths.

Much like the Christian right in the United States blended religious fervor with capitalist fundamentalism, the BJP has cloaked its pro-business position in saffron robes. And, just as American billionaires embrace the white supremacist Donald Trump, India’s wealthy seem unperturbed by incumbent Prime Minister Narendra Modi’s hate-filled speeches.

Indian corporate interests are counting on incumbent Modi winning another five years in office, “hoping for further easing of stifling investment restraints,” as per the Financial Times. This dismantling of regulations, which began a few decades before the BJP gained power, ushered in an erosion of India’s socialist infrastructure. Economists Subhashree Banerjee and Yash Tayal explained in the Deccan Herald, that India’s 1991 reforms ended up “liberalizing the Indian economy to an unprecedented extent. These reforms facilitated an environment for the wealthy to profit from the less-affluent without repercussions.”

The BJP accelerated this trend so that India, which housed nine billionaires in 2000, was home to 101 by 2017. According to Oxfam, “The top 10 percent of the Indian population holds 77 percent of the total national wealth,” and “73 percent of the wealth generated in 2017 went to the richest 1 percent, while 670 million Indians who comprise the poorest half of the population saw only a 1 percent increase in their wealth.” It’s clear that deregulation helped catapult the rich into greater riches while keeping India’s poor relatively impoverished.

Sitting atop this inglorious dung heap of billionaires is Mukesh Ambani, who is not only India’s richest man, but the wealthiest person in all of Asia—the world’s largest continent. He is also the world’s 11th richest man. And he appears to feel no shame in having spent $152 million for a three-day extravaganza in early March celebrating the coming nuptials of his youngest son.

Yes, that’s correct. Twenty-nine-year-old Anant Ambani’s “pre-wedding” festivities, which took place in Gujarat over three days (several months before the actual wedding), cost the equivalent of feeding nearly 50 million of India’s poorest citizens for a day. The groom-to-be’s mother sported a $60 million necklace to the party, while American pop icon Rihanna flew in to perform for guests for one-tenth of the cost of the jewels.

This brazen display of excess is oddly refreshing. Unlike many American billionaires who prefer hiding the perverse extent of their wealth, the Ambanis are delightfully honest in flexing their economic power for the world to see. The pre-wedding has generated countless headlines in India and in the world for its mind boggling lavishness—1,200 guests, including the world’s top CEOs and Bollywood’s most popular stars! More than 2,500 unique dishes including 70 breakfast options and 85 varieties of midnight snacks! Bespoke designer gowns dripping with pearls!

Forget Britain’s royal family, whose weddings appear humble in comparison—Harry and Meghan’s wedding cost a mere $43 million, cheaper than Mrs. Ambani’s necklace—India’s royalty is newly minted and unwilling to bow down at the altar of modesty.

The Ambanis’ conspicuous consumption has also generated endless derision from ordinary Indians who are having a field day lambasting the family’s apparent need for such profligacy on social media. One popular YouTube channel spent more than 13 minutes gleefully delving into every over-the-top detail, ridiculing the ridiculous.

There seemed to be at least some semblance of an attempt by the wealthy family to thwart the inevitable public criticism. Forbes reported that the festivities were held against the backdrop of a wildlife sanctuary called Vantara, which apparently is “the manifestation of Anant’s vision for a brighter future for the animal kingdom, from spreading awareness on the mistreatment of animals to working to breed near-extinct species.”

A friend of the happy couple told Forbes that, “The events brought incredible exposure and shone a spotlight on the good work that’s been done, and also spread the message on the state of animals in the world and the challenges to overcome in improving their welfare.”

Was it charity, shame, or public relations that prompted such a ludicrous juxtaposition as justification? We may never know.

Meanwhile, the defenders of corporate profiteering in India’s business-friendly atmosphere have enjoyed a public relations coup with the release of a long-overdue report by the BJP government earlier this year claiming that poverty in India now afflicts only 5% of the population. The report spawned such wild conclusions by publications like the Brookings Institute as “[d]ata now confirms that India has eliminated extreme poverty,” promoting the wild idea that predatory capitalism is good for Indian democracy. 

But critics point out that the report’s numbers have been massaged to align with the BJP’s reelection efforts so as to paint the government as having achieved the near-impossible. According to Princeton economist Ashoka Mody, “While the publication of India’s first consumption figures in over a decade has generated much excitement, the official data appear to have been chosen to align with the government’s preferred narrative.”

Mody eloquently surmised, “[W]hile such misuse of statistics will amplify the India hype in elite echo chambers, poverty remains deeply entrenched in India, and broader deprivation appears to have increased as inflation erodes incomes of the poor.”

The “elite echo chambers” he references are very real. One Indian billionaire, NR Narayana Murthy, argued for a 70-hour work week in India (even as Americans are now debating working for less than half that time). A tech mogul and co-founder of Infosys, Murthy happens to be the father-in-law of UK Prime Minister Rishi Sunak. He complained on a podcast that “India’s work productivity is one of the lowest in the world,” and that the nation’s youth ought to be saying, “This is my country. I’d like to work 70 hours a week.’”

India’s political and financial elites are painting a gold-plated vision of a modern Gilded Age: Because billionaires are saving wildlife from extinction it’s okay for them to obscenely flaunt their wealth, and meanwhile everyone’s fortunes are rising through hard work!

But the strongest evidence that this vision is a lie is for Indians to see their own lives against the Ambanis’. Nearly a billion Indians will finish casting ballots about a month before their “royal family” jet sets off to London for the youngest heir’s actual nuptials, to be held at the exclusive Stoke Park estate. If there’s anything voters can be grateful for, it is that their nation’s wealthy elites are busy reminding them of how little they have in comparison and how morally bankrupt a system is that allows such inequality.

This article was produced by Economy for All, a project of the Independent Media Institute.

Sonali Kolhatkar is the founder, host and executive producer of “Rising Up With Sonali,” a television and radio show that airs on Free Speech TV and Pacifica stations. She is a writing fellow for the Economy for All project at the Independent Media Institute.

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Campus Activism for Gaza Ignites

While the first and longest-running student takeover has been at Vanderbilt University in Nashville, Tennessee, it was Columbia University that lit the fuse for a widespread student movement and drew global attention.

by Saurav Sarkar

Students at more than 40 universities and colleges in the United States and around the world have lit a fire under the Palestine solidarity movement by setting up encampments on their campuses. They are demanding that their universities end their complicity with Israel’s genocide in Gaza and the occupation of Palestine more broadly.

While the first and longest-running student takeover has been at Vanderbilt University in Nashville, Tennessee, it was Columbia University that lit the fuse for a widespread student movement and drew global attention. The administration’s decision at the elite New York City school to sic the repressive New York Police Department on peacefully protesting students led to a global movement and gave hope for the first time in months to countless people. As of April 26, student occupations extended to France and Australia in addition to dozens of campuses in the United States.

A student activist chants slogans inside a gate of Columbia University's Morningside Heights campus in New York City, the United States, April 22, 2024. (Xinhua/Liu Yanan)

Police repression at other sites besides Columbia has been fierce as well. At Emerson University in Boston, Massachusetts, the Boston Police Department was livestreamed manhandling protesters in the early hours of April 25. At Emory University in Atlanta, Georgia, the police threw Caroline Fohlin, an economics professor who attempted to intervene in arrests of students, to the ground, her head hitting the concrete. The University of Southern California allowed officers to fire rubber bullets at students, and the University of Texas–Austin had local and state police on motorcycles, horseback, and on foot arresting students.

But the police didn’t always have the upper hand. At Cal Poly Humboldt, students successfully barricaded themselves in a building. And, at the City University of New York’s City College, protesters pushed the police back and maintained the integrity of their encampment.

Through it all, students have grounded the protests in what matters: conditions in Gaza and their universities’ ties to Israel. Even as establishment figures hemmed and hawed in the face of the student uprising—President Joe Biden tried to link them to “antisemitism”—two mass graves were uncovered in Palestine, which was from the aftermath of terroristic Israeli raids on two hospitals in Gaza. About 400 doctors, patients, children, and others were found dead, in some cases buried alive.

The higher-ups on campuses, in boardrooms, and in presidential palaces around the world appeared to have nothing new to say about Israel’s horrifying and murderous tactics. The Zionist state’s genocide in Gaza has already reached its 200th day, with at least 34,000 dead and an invasion reportedly imminent in Rafah, the southern city and place of last refuge for hundreds of thousands of Palestinians.

While some have claimed that the mainly U.S. student movement is a distraction, movement figures like Harsha Walia have noted the connections between racist state violence in the United States and in Israel and elsewhere. And, if nothing else, the student movement in advance of both the launch of the aid-carrying “Freedom Flotilla” and International Workers’ Day has given countless Palestinian solidarity activists something concrete to do beyond doomscrolling horrifying images from Gaza for hours or attempting to carry on with their daily lives in the face of ongoing genocide.

Moreover, with billions of dollars in endowment money, social capital, and, in some cases, direct links to the state of Israel, universities are an important site of struggle for the advancement of the Boycott, Divestment, and Sanctions movement. For example, Columbia University maintains a campus in Tel Aviv.

The United States proves increasingly inhospitable to free speech, a cornerstone of democracy; and it seems nearly every private and public institution has been corporatized, militarized, or both. Reprising the historical role of universities as centers of knowledge and public interest as students are doing now could offer a site for pushback to not just the genocide in Gaza, but much more.

In the coming days, there may be many more encampments in an ever-widening range of sites around the world. The protesters are united in their purpose; as a common chant, “Disclose, divest; we will not stop, we will not rest!” is heard across the globe.

Source: Globetrotter

Saurav Sarkar is a freelance movement writer, editor, and activist living in Long Island, New York. They have also lived in New York City, New Delhi, London, and Washington, D.C. Follow them on Twitter @sauravthewriter and at sauravsarkar.com.

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How Banks and Investors Are Fueling a Global Biodiversity Crisis

Commercial financial flows to the forest-risk commodity sectors are driving the majority of tropical deforestation.

by Laurel Sutherlin

In a global context where tropical rainforests play a critical role in biodiversity conservation and climate regulation, these ecosystems are severely threatened by expanding agribusiness and logging activities. This poses significant risks to the environment, wildlife, and communities dependent on rainforests.

Against the backdrop of escalating climate change impacts, urgent action is needed to prevent the collapse of these vital ecosystems and address the injustices faced by Indigenous and local communities and workers within the agricultural sector.

Rio de Janeiro, Brazil [ Photo: Agustin Diaz Gargiulo/ Unsplash]

The ratification of the UN Global Biodiversity Framework in December 2022 marked a pivotal moment, signaling a collective commitment by 196 countries to reverse the decline in global biodiversity. However, financial institutions have historically failed to address their role in exacerbating the biodiversity crisis.

A 2023 report by Forests and Finance—a coalition of campaign, grassroots and research organizations that includes TuK Indonesia, Profundo, Amazon Watch, Repórter Brasil, BankTrack, Sahabat Alam Malaysia, Friends of the Earth U.S., and my organization, Rainforest Action Network—sheds light on the extensive financial support provided to sectors responsible for tropical deforestation, including beef, palm oil, pulp and paper, rubber, soy, and timber. “From January 2016 to September 2023, banks provided at least $307 billion in credit to these operations,” states the report, while institutional investors held approximately $38 billion in related shares and bonds.

Despite fluctuations in financial flows, there has been no discernible downward trend in financing forest-risk commodity production. Alarmingly, the analysis of more than 100 financial institutionsʼ policies in 2023 revealed grossly inadequate safeguards against deforestation and its associated social and environmental impacts. The average policy score was just 17 percent, according to the report.

Entities like JBS, Cargill, Royal Golden Eagle, and Sinar Mas Group exemplify the egregious behaviors tolerated and enabled by banks and investors.

Demands to Correct a Systemic Issue

The report by Forests and Finance urged governments and financial institutions to adopt and enact five principles:

1. Halt and reverse biodiversity loss

2. Uphold and prioritize the rights of Indigenous peoples, women, and local communities

3. Facilitate a just transition

4. Safeguard ecosystem integrity

5. Harmonize institutional objectives across sectors, issues, and instruments

Immediate action is crucial to combat the climate and biodiversity crises. The report urges financial institutions to align their activities with sustainability goals, enact robust environmental and social policies, and ensure transparency and accountability. By holding the financial sector accountable for its role in enabling social and environmental harm, we can work toward preserving biodiversity and mitigating the impacts of climate change for current and future generations.

Notable Progress

The Forests and Finance report highlights the significant progress of tropical forest countries and key import and financial jurisdictions in promoting sustainable financial practices and combating deforestation. Brazil, Indonesia, Malaysia, the United States, and the European Union have all taken notable steps toward integrating environmental, social, and governance (ESG) considerations into their financial systems.

Brazil stands out for excluding industrial livestock activities from sustainable sovereign bonds and for being the first country to commit to integrating the International Sustainability Standards Board’s IFRS Sustainability Disclosure Standards into its regulatory framework by 2026. Implementing these standards will help bolster Brazilian capital markets by amplifying transparency in sustainability-related risks and opportunities. This, in turn, will ensure that companies attract capital and foster global investments that are aligned to meeting the goals of nature protection and sustainable development.

Another initiative that supports sustainability is the implementation of green taxonomies. These taxonomies are meant to simplify guidelines regarding activities that support decarbonization objectives, including efforts to curtail deforestation and environmental degradation. This can bolster financiers’ confidence in investing in projects that move the needle toward a low-carbon and climate-resilient economy.

Indonesia introduced its Green Taxonomy in January 2022 to expedite financing for sustainable sectors. “Indonesia’s joint targets under the Just Energy Transition Partnership (JETP) include capping power sector emissions to 290 MT by 2030 and reaching net zero by 2050,” reported Luthfyana Kartika Larasati and Tiza Mafira of the Climate Policy Initiative, an independent nonprofit research group based in San Francisco, in October 2023.

“To achieve these [targets], phasing out coal-fired power plants while accelerating the deployment of renewable energy sources is necessary. As financiers are now reluctant to finance coal, a transition taxonomy defines measurable parameters within which coal investment is allowed in order to facilitate early coal decommissioning,” wrote Larasati and Mafira.

Malaysia implemented the Value-based Intermediation Financing and Investment Impact Assessment Framework (VBIAF) in November 2019 and issued the Climate Change and Principle-based Taxonomy in 2021 to guide Islamic financial institutions.

Meanwhile, a March 2024 Securities and Exchange Commission (SEC) climate disclosure ruling seems to be a step in the right direction toward the U.S. managing its climate risk, even though the move remains inadequate to effectively protect the world’s forests. On the procurement side, the new EU Deforestation Regulation, expected to take effect on December 30, 2024, provides a potentially powerful new tool for achieving supply chain traceability and transparency.

The European Union also approved new EU Taxonomy criteria in 2023 focusing on biodiversity protection and ecosystem restoration, despite criticism that it judged harmful sectors like forestry and bioenergy to be environmentally sustainable economic activities.

Forest-Risk Credit Trends

The report revealed that at least $307 billion in credit had been directed to forest-risk sectors from 2016 to September 2023. The beef sector dominated South America, while palm oil led in Southeast Asia and rubber in Central and West Africa. Primary beneficiaries included agro-commodity traders and companies with significant environmental and social violations.

While progress has been made, heightened attention and enhanced due diligence procedures are needed to address associated ESG risks and promote sustainable financial practices to combat deforestation and environmental degradation.

Big corporations launched the Taskforce for Nature-related Financial Disclosures (TNFD) in June 2021 to guide businesses in reporting nature-related dependencies. However, civil society organizations have repeatedly raised concerns about the task force’s development, composition, approach, and potential for greenwashing.

Regional Analysis of Credit Flows

The analysis of regional credit flow and investment trends in forest-risk commodity sectors across South America, Southeast Asia, and Central and West Africa revealed significant financial flows and investments contributing to deforestation and environmental degradation.

In South America, the beef sector dominated forest-risk credit flows, followed by soy, and pulp and paper, with Banco do Brasil emerging as a significant creditor. Infamous beneficiaries included companies like Suzano and Marfrig.

In Southeast Asia, palm oil was the dominant recipient of forest-risk credit, followed by pulp, paper, and rubber. Indonesian banks played a significant role as financiers, with recipients including tycoon-owned conglomerates Sinar Mas Group (SME) and Royal Golden Eagle (RGE). Concerns over governance risks and greenwashing practices persisted despite reductions in primary forest loss.

Central and West Africa saw the rubber sector attracting the majority of forest-risk credit, with Chinese companies emerging as primary financiers. The Chinese Sinochem Group was the largest recipient of the credit, followed by China Forestry Group and Wilmar.

Despite fluctuations in credit flows, challenges remain in corporate structures and accountability. For instance, companies like “SMG [and] RGE… have established complex corporate structures that mask ownership relations. This poses serious governance risks and facilitates leakage and greenwashing. They have all been linked to egregious social and environmental harms for decades,” states the report.

Forest-Risk Investments

Investments in activities likely to damage forests globally amounted to more than $38 billion, with palm oil receiving the most significant share, followed by pulp and paper. Major institutional investors like BlackRock and Vanguard increased their stakes in forest-risk commodity companies, while others maintained or reduced their investments.

In South America, investments were predominantly allocated to the pulp and paper sector, with Suzano being the highest recipient. Southeast Asia saw the most investment in palm oil companies, with Sime Darby Plantations and IOI Group among the leading recipients.

In Central and West Africa, palm oil companies also received the majority of investments, with Sumitomo Forestry and Itochu being prominent recipients.

Forest-Risk Policy Assessments

Forests and Finance’s assessment methodology evaluated financial institutionsʼ adherence to 38 criteria to avoid contributing to deforestation and associated ESG issues.

These criteria are categorized into environmental, social, and governance requirements, covering commitments to zero deforestation, respect for land rights, anti-corruption measures, and more.

Forest-risk policy assessments of more than 100 financial institutions revealed a lack of robust policies, with an average score of only 17 percent. Despite incremental improvements since 2016, vague language, unclear timeframes, and loopholes persisted, leading to continued facilitation of human rights violations and deforestation.

The analysis underscores the urgent need for heightened attention, enhanced due diligence, and more stringent policies to address associated environmental, social, and governance risks. It also highlights the need to promote sustainable financial practices in combating deforestation and ecological degradation in tropical forest regions.

Policies by Sector

Regarding sectoral policies, financial institutions exhibit the most robust policies for palm oil, followed closely by timber, and pulp and paper. However, the average scores for these sectors remain relatively low, indicating room for improvement despite sustained civil society campaigns and certification schemesʼ existence.

The assessment of forest-risk bank policies reveals that, on average, the largest 30 forest-risk banks have higher overall policy scores than the largest forest-risk investors. However, the scores across the board are still low, reflecting minimal policy coverage across ESG criteria.

While some banks like CIMB and BNP Paribas scored relatively higher, others like Banco do Brasil and ICBC had notably low scores, indicating inadequate policies to address harmful activities.

Four Corporations Leading Destruction

The report highlights four corporations—Cargill, JBS, Royal Golden Eagle, and Sinar Mas Group—that continue to receive significant credit and investment from financial institutions despite having egregious environmental and social track records. Cargill, in particular, has received substantial credit for its soy operations in tropical forest regions despite having a legacy of human rights abuses and environmental degradation.

Cargill

Cargillʼs expansion into the Brazilian Amazon and the Cerrado savanna has raised concerns due to decades of deforestation, violations of Indigenous peoples’ rights, and failures to meet deforestation commitments. Civil society campaigns, such as Burning Legacy, have aimed to hold Cargill accountable for its practices, documenting evidence of human rights abuses and deforestation in its supply chain.

Despite making commitments to ensure zero deforestation by 2020, Cargill has failed to meet its goals and has faced allegations of land grabbing and violations of Free, Prior, and Informed Consent (FPIC) rights.

The report also discusses the implications of the financialization of land and the role of the financial sector in exacerbating soy-driven deforestation through land speculation. It evaluates the policies of banks financing Cargill, revealing low scores and loopholes that weaken their effectiveness in preventing harm in forest-risk sectors.

JBS

The report delves into the multifaceted issues surrounding JBS, the Brazilian meat giant, and its impact on the Amazon rainforest, climate change, and local communities. Financed by major banks from Brazil, the United States, Europe, and Japan, JBS has received substantial credit and investment despite its documented history of harmful business practices. Since 2019, banks have provided more than $718 million in forest-risk beef credit to JBS, while investors held $667 million in bonds and shares as of September 2023.

JBSʼs operations in the Brazilian Amazon have devastating consequences for forests, biodiversity, and Indigenous and traditional communities. The company’s practices include bribery, corruption, price fixing, forced labor and labor abuses, forest destruction, land grabbing, and contribution to climate change. Despite JBS’s high-profile pledge to achieve net-zero emissions by 2040, independent research suggests that the company lacks a credible decarbonization plan, leading to allegations of greenwashing.

The exploitation of people and forests in the Amazon is a systemic issue linked to JBS. Between 2008 and 2020, the company’s involvement in deforestation extended to approximately 200,000 hectares in its direct supply chain and 1.5 million hectares indirectly. Despite agreements to clean up its supply chain, JBS has failed to ensure its products are free from deforestation and forced labor, as evidenced by ongoing violations.

The assessment of JBS policies reveals concerning scores, indicating inadequate measures to prevent environmental harm and protect human rights. While some banks like Barclays scored relatively higher, others like Bradesco and BTG Pactual had alarmingly low scores, raising questions about their commitment to addressing crucial issues like deforestation and climate change.

The communities affected by these actions are now holding financial institutions supporting companies like JBS responsible for the environmental damage. In April 2024, the Parakanã people met with the Brazilian Development Bank (BNDES) to ask for reparation for the devastation of their territory, including by JBS suppliers. The Brazilian bank holds 20 percent of the shares of JBS and is therefore considered co-responsible for the impacts.

Royal Golden Eagle Group

The report also reveals mounting evidence that the multibillion-dollar Royal Golden Eagle Group (RGE), which says on its website “manages a group of world-class companies specializing in resource-based manufacturing,” operates numerous “shadow companies” and complex offshore ownership schemes to hide their destruction of forests across Indonesia. Banks have poured more than $4.5 billion into forest-risk pulp and paper-attributable loans and underwriting services for RGEʼs operations between 2019 and 2023.

However, none of the financial institutions assessed have adequate policies to mitigate the negative impacts. Scores for RGEʼs top creditors range from 1 percent to 24 percent, indicating a lack of comprehensive policy coverage regarding forest-risk commodity sectors.

Sinar Mas Group

Sinar Mas Group (SMG), Indonesiaʼs largest conglomerate, has attracted substantial financing, receiving more than $20.3 billion in credit since 2019. Its palm oil division alone obtained $3.7 billion, primarily from Indonesian and Malaysian banks, between 2019 and September 2023. Despite this financial backing, SMG faces accusations of human rights abuses, massive greenhouse gas emissions, and large-scale deforestation, mainly through its pulp and paper division, Asia Pulp and Paper (APP).

The destruction of the Rawa Singkil Wildlife Reserve by illegal palm oil plantations linked to SMGʼs operations poses a significant concern, threatening biodiversity and local communitiesʼ well-being within the Leuser Ecosystem. Despite documented evidence, SMG and its subsidiaries have failed to address these issues adequately, raising questions about their commitment to sustainability.

The report evaluates the policies of banks and investors financing SMG, revealing a spectrum of approaches. Malaysian banks CIMB and Maybank and Dutch bank Rabobank exhibit more robust policies, scoring highest for the palm oil sector. However, Indonesian banks such as Bank Panin, BRI, and Japanese bank MUFG have notably weaker policies, indicating insufficient measures to address environmental and social risks.

What Governments and Financial Institutions Can Do

The report underscores the urgent need for financial institutions to adopt robust policies and due diligence measures to address environmental and social risks associated with companies like JBS and RGE. Failure to do so perpetuates ecological destruction and human rights abuses and exposes banks and investors to significant financial and reputational risks.

Critically, the report also advocates for governments to step in and mandate financial sector regulation necessary to safeguard society and the ecosystems we depend on, consistent with international public policy goals. This is a problem that ultimately demands stronger, more systemic interventions. These could include, for example, prohibiting the allocation of capital to certain sectors or corporations driving ecosystem destruction and legislating for meaningful sanctions against financial institutions that fail to align their lending and investment accordingly.

This article was produced by Earth | Food | Life, a project of the Independent Media Institute.

Laurel Sutherlin is the senior communications strategist for Rainforest Action Network and a contributor to the Observatory. He is a lifelong environmental and human rights campaigner, naturalist, and outdoor educator with a passion for birds and wild places. Follow him on Twitter: @laurelsutherlin.

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Easter Attacks: Third Debate Ends; Time to Unmask the Conspiracy

Exposing Exploitation and Urging Reform in the Aftermath of the Easter Attack Parliamentary Debate

Editorial

The three-day parliamentary debate on the Easter attack has reached its culmination. Throughout this extended discourse, it has been emphatically demonstrated that there exists no overarching conspiracy behind these tragic events. Instead, it has become glaringly apparent how certain factions within society are shamelessly exploiting this tragedy to advance their narrow personal agendas. The critical inquiry posed by an MP Kumarathunga to the Minister of Public Security during the final stages of the debate resonates profoundly: what measures will be taken against those who possessed forewarning of the impending attack—information conveyed a full ten days prior, and yet again just one day before—yet failed to intervene to prevent the unfolding catastrophe?

File photo: Churches under tight security in the aftermath of the Easter bombings in 2019.

Central to the debate’s revelations is the incontrovertible fact that the state intelligence apparatus diligently disseminated pertinent information to the requisite authorities and establishments. Despite this, baseless accusations continued to be levelled against the intelligence services, even leading to the unjust vilification of its senior officials within the public sphere. Such unfounded narratives, regrettably, even seemed to taint judicial proceedings. Yet, the discourse has brought forth a starkly contrasting truth: the intelligence service discharged its duty diligently, corroborated by corroborative testimonies from political parties, religious groups, and other corroborative parties. The glaring discrepancy, however, lies in the failure to hold accountable those culpable individuals who neglected their responsibility to act upon the intelligence provided.

Further scrutiny unveiled crucial details involving recurrent figures such as Abu Hind, Sarah Jasmine, Podi Saharan, and Sonic Sonic. Pertinent inquiries into IP addresses, lodging arrangements of the assailant Saharan, and other pivotal aspects were satisfactorily addressed. Moreover, the conspicuous evasion of the former Attorney General, once touted as a linchpin in the alleged grand conspiracy, underscores the imperative for those entangled in nefarious plots to confront reality. The time has arrived to terminate the reprehensible dissemination of unfounded rumours and the unjust persecution of conscientious officials. What remains paramount is to regard this distressing episode as an impetus for societal healing, steering clear of any further misdirection. Additionally, it behoves us to honourably discharge any obligations owed to the victims of this tragedy, while also implementing substantive structural reforms to forestall the recurrence of such harrowing events.

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Breaking News: Ranil Tapped for Presidency, Basil Eyed as Prime Minister

The Ruling Alliance has thrown its support behind Ranil Wickremasinghe for the upcoming Presidential Elections scheduled for the third week of October, with the condition that he appoints Basil Rajapaksa as the Prime Minister.

by Our Political Affairs Editor

The ruling alliance, led by the Podu Jana Peramuna, popularly known as the Buds Party, has endorsed Ranil Wickremasinghe as its candidate for the upcoming Presidential Elections, set to take place in the third week of October, according to a reliable inside source.

File Photograph of Basil Rajapaksa [Photo Credit: Getty Images]

Simultaneously, sources reveal a stipulation within the alliance’s support for Mr. Wickremasinghe, requiring him to appoint Basil Rajapaksa as the Prime Minister immediately following the election victory, and to call for Parliamentary elections three months later.

Amid these developments, intense diplomatic activity is underway, particularly among Western and South Asian diplomatic missions, aiming to establish a strong alliance between Sajith Premadasa and Ranil Wickremesinghe. However, Mr. Premadasa’s position remains uncertain as he deliberates over the proposed alliance. Inside sources suggest mounting pressure within his party, with many members advocating for collaboration with Mr. Wickremesinghe’s camp before opportunities diminish.

Ranil Wickremasinghe’s appointment as President comes after a preliminary secret ballot, immediately following President Gotabaya Rajapaksa’s resignation amidst widespread protests supported by diplomatic missions.

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