A new database reveals that global banks have enabled $154 billion in loans and underwriting into the production and trade of commodities driving deforestation and land degradation since 2015.

Banco do Brasil was found to be the largest creditor overall, having provided $30bn to forest-risk commodity operations, since 2016. This was almost exclusively for companies operating in Brazil, going into beef, soy and pulp and paper operations. Also in the top five of largest creditors are the Brazilian bank Bradesco with $7.5bn, Rabobank with $6.3bn, JPMorgan Chas, with $5.8bn and Mizuho Financial with $5.5bn.

Just 15 banks accounted for approximately 60 per cent of the credit extended to forest-risk companies since the signing of the Paris Climate Agreement. Eight of these banks are signatories to the UN’s Principles for Responsible Banking, which includes a commitment to align bank operations with the Paris Agreement and Sustainable Development Goals (SDG), including SDG 15 to “halt deforestation restore degraded forests” by 2020.

Launched by Forests & Finance — an initiative by the Forests & Finance Coalition including Rainforest Action Network (RAN), TuK INDONESIA, Profundo, Reporter Brasil, Amazon Watch, and BankTrack — the database reveals the financial flows between January 2013 and April 2020 to more than 300 of the biggest forest-risk commodity companies whose operations impact forests in Southeast Asia, Central and West Africa, and Brazil.

“Right now, intentionally lit fires are burning through the world’s last remaining rainforests as fire is used as a ‘cheap’ way to clear land for commodity production. Global banks and investors are knowingly financing agribusiness giants that are fuelling the fires,” said Merel van der Mark, coordinator of the Forests and Finance Coalition. “Despite the financial sector’s commitments to the Sustainable Development Goals and the Paris Agreement, their pursuit of profits are driving us toward a climate and public health disaster at full speed.”

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