Report: Shocking Discovery — Chinese Listed Firms Incorporate Endangered Animal Parts as Ingredients

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A rescued pangolin bought off a wildlife seller is seen resting at the Green Finger Garden in Lagos, Nigeria on July 29, 2020. REUTERS/Seun Sanni

SHANGHAI/HONG KONG, Oct 23 (Reuters) – According to a report published on Monday by the London-based Environmental Investigation Agency (EIA), three publicly listed Chinese drugmakers, with investors including some of the world’s biggest banks, have been found to use parts of endangered animals as ingredients in their products.

The EIA is urging investors in Beijing Tong Ren Tang group (600085.SS), Tianjin Pharmaceutical group (600329.SS), and Jilin Aodong Pharmaceutical Group (000623.SZ) to divest their stakes.

When contacted for comment, Beijing Tong Ren Tang and Tianjin Pharmaceutical group did not respond to Reuters’ emails or calls. Jilin Aodong Pharmaceutical Group could not be reached for comment.

These three companies are among 72 firms identified by the EIA as using body parts of threatened leopards and pangolins in at least 88 traditional Chinese medicine (TCM) products.

The EIA specifically focused on these pharmaceutical companies because they are publicly listed and prominently display products containing leopard or pangolin parts on their websites. TCM manufacturers often highlight the effectiveness of these ingredients in their products.

“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, in a press release. “They need to divest from TCM manufacturers using threatened species at the soonest opportunity.”

HSBC Holdings (HSBA.L), UBS (UBSG.S), Deutsche Bank (DBKGn.DE), Citigroup (C.N), and BlackRock (BLK.N) are among the 62 financial institutions that have invested in at least one of the three Chinese drugmakers, according to EIA. Some investors, including Wells Fargo & Co (WFC.N), stated that they have either sold the funds invested in these TCM firms or have divested their shares in the companies.

EIA reported that HSBC Global Asset Management Canada and Royal Bank of Canada have informed them that their investments in these companies are limited to passive or tracker funds. UBS stated that its shareholdings are on behalf of clients. EIA’s queries to Deutsche Bank, HSBC Holdings, Citigroup, and BlackRock went unanswered.

EIA has called on the Chinese government to ban the use of parts from endangered animals for all commercial purposes within domestic markets. However, China’s National Medical Products Administration did not respond to Reuters’ request for comment.

China’s amended Wildlife Protection law went into effect in May, prohibiting the trade of most wild animals for consumption as food. However, breeding and use permits can still be issued under certain circumstances.

Reporting by Andrew Silver in Shanghai and Selena Li in Hong Kong; editing by Miyoung Kim and Jason Neely