This project assessed the financial services received by a selection of 50 major companies directly involved in the production or primary processing of palm oil, pulp & paper, rubber and tropical timber, whose operations impact natural tropical forests in the Asia-Pacific region.
Financial databases Thomson EIKON and Bloomberg, as well as publicly available company reports, were used to identify corporate loans, credit and underwriting facilities provided to the 50 selected companies in the period 2010-2015. Investments in bonds and shares of the selected companies were identified through Thomson EIKON and Bloomberg at the most recently available filing date in April 2016. This data provides a deal-level dataset of specific relationships between selected companies and any linked financial institution.
Companies with business activities outside of the forest sector had recorded amounts reduced to more accurately present the proportion of financing that can be reasonably attributed to the forest-risk sector production or primary processing operations of the selected company. Where available financial information did not specify the purpose of investment or receiving division within the parent company group, reduction factors were individually calculated by comparing a company’s forest-risk sector activities relative to its parent group total activities.
The commercial banks identified in this study were evaluated to determine the strength of any publicly-available policies relevant to tropical forest-sector investment decision-making, and subsequently scored against a range of criteria incorporating environmental, social and governance standards. Each of the major banks was allocated a score on the scope of its policies and its environmental and social standards.
The data and assessments presented in this website have not been provided by or authorized by any of the financial institutions or clients concerned. While every attempt has been made to research and present data and assessments accurately and objectively, it is difficult to guarantee complete accuracy. This is not least because of the lack of consistency and transparency in how financial institutions and forest-risk sector clients record key financial and company information. Where there has been ambiguity in source information of financial services, the authors of this website have acted cautiously, resulting in a likely underestimation of the true amounts of finance involved. The authors are committed to correcting any identified errors at the earliest opportunity.