Chinese Drugmakers Accused of Using Endangered Animal Parts in Products, Environmental Group Reports
Shanghai/Hong Kong – In a report published on Monday, the London-based Environmental Investigation Agency (EIA) revealed that three Chinese drugmakers, whose investors include some of the world’s largest banks, have been using parts of endangered animals in their products. The EIA called on investors in Beijing Tong Ren Tang group, Tianjin Pharmaceutical group, and Jilin Aodong Pharmaceutical Group to divest their stakes in these companies.
According to the EIA, these three firms are part of a group of 72 companies that have used body parts of threatened leopards and pangolins as ingredients in at least 88 traditional Chinese medicine (TCM) products. The EIA focused on pharmaceutical companies because they are publicly listed and prominently display products containing leopard or pangolin parts on their websites.
The report highlighted the disappointing endorsement of this damaging exploitation by major banks and financial institutions. “It’s particularly disappointing to see so many major banks and financial institutions effectively endorsing this damaging exploitation,” said Avinash Basker, a legal and policy specialist for EIA.
Among the financial institutions implicated are HSBC Holdings, UBS, Deutsche Bank, Citigroup, and BlackRock. The EIA stated that 62 financial institutions have invested in at least one of the three drugmakers. Some investors, such as Wells Fargo & Co, have already sold their shares in the companies or divested from funds invested in TCM firms, according to the EIA.
Deutsche Bank, HSBC Holdings, Citigroup, and BlackRock did not respond to the queries made by the EIA. However, Deutsche’s asset management arm, DWS, stated that it has no exposure to the three drugmakers through its actively managed funds.
The EIA called on the Chinese government to prohibit the use of endangered animal parts for all commercial purposes in domestic markets. China’s National Medical Products Administration did not respond to Reuters’ request for comment.
China’s amended Wildlife Protection law, which came into effect in May, bans the trade of most wild animals for consumption as food but still allows for breeding and use in specific circumstances.
This investigation serves as a strong reminder of the need for stricter regulations and ethical practices in the pharmaceutical industry to protect endangered species and promote sustainable alternatives in traditional medicine. The EIA’s report highlights the responsibility of financial institutions to carefully screen their investments and prioritize sustainability and environmental conservation.