Finance and the frontlines

Banks and investors enable forestry and agribusiness companies to expand operations into the world’s remaining tropical forest ecosystems. This is driving the destruction of forests and peatlands and violating Indigenous Peoples’ and local communities' rights.

Rainforest to illegal pasture: JBS’ Impact on Apyterewa

JBS, the world’s largest meat processing company, has been linked to illegal deforestation and land invasions in Brazil’s Apyterewa Indigenous Territory, home to the Parakanã people. Despite legal protection, over 98% of deforested land in Apyterewa has been converted to illegal cattle pastures, with cattle from these areas entering JBS’s supply chain through 'cattle laundering.' This has occurred despite JBS's 2009 commitment to trace its supply chain.

The Parakanã people, demanding reparations from JBS and its financiers, are leading efforts to reforest their land. Financial institutions, including the BNDES, have begun reducing investments in JBS due to the company’s ongoing environmental and human rights violations. This case underscores the need for stronger corporate accountability and supply chain transparency to protect Indigenous lands and the Amazon rainforest.

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Banking on False Promises: The Risks of Overreliance on Flawed Certification Schemes

Financial institutions’ overreliance on flawed certification schemes like the Forest Stewardship Council (FSC) and Roundtable on Sustainable Palm Oil (RSPO) is a major risk to biodiversity and human rights. Despite their sustainability claims, these certifications allow companies linked to deforestation and land grabbing, such as First Resources and Royal Golden Eagle, to maintain a façade of compliance. The schemes lack robust oversight, independent verification, and enforceable standards, allowing harmful practices to continue unchecked. Banks and investors relying solely on these certifications to meet their no-deforestation commitments are not mitigating their exposure to environmental and social risks, underscoring the need for stronger due diligence and independent monitoring beyond these inadequate frameworks.

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Bunge and the Illusion of TNFD Disclosure as Progress

Bunge, a global agribusiness giant, is driving deforestation and human rights abuses in Brazil’s Cerrado region, despite its public sustainability claims. Linked to land grabbing and the displacement of Indigenous communities, Bunge profits from soy production that accelerates the destruction of critical ecosystems. Its participation in the Taskforce on Nature-related Financial Disclosures (TNFD) highlights the framework’s failure. TNFD allows companies to selectively report data while avoiding accountability for environmental damage, offering no real protection for nature. This weak, voluntary framework serves as a greenwashing tool, masking corporate harm rather than driving meaningful change.

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Where is the money coming from?

Forest-risk commodities are financed by banks and investors from around the world. This includes financiers from both producer and consumer countries. Here you can see which countries provide the most finance to forest-risk sectors. This covers the period January 2016 to June 2024 for Credit and July 2024 for Shareholding.

Which banks & investors contribute most to the problem?

This research maps financial flows from banks and investors to 300 companies driving tropical deforestation. Use the drop-down menu to explore the rankings of banks providing credit and underwriting (2018-2024 June) and investors holding bonds and shares (July 2024).

How do the bank & investor policies stack up?

See how the largest banks and investors enabling forest-risk commodity sectors in the worlds’ tropical forest biomes score. We assessed the strength of their Environmental, Social and Governance policies for key forest-risk sectors in 2023. View by banks or investors, ordered by the size of their credit to, or investment in forest-risk sectors.

Our demands to the financial sector

Governments and financial institutions need to act now to address the climate and biodiversity crises. To achieve this, they should adopt and implement these five principles:

01
Halt and reverse biodiversity loss.
02
Respect and prioritize the rights of Indigenous Peoples, women and local communities.
03
Foster a socially and ecologically just transition.
04
Ensure ecosystem integrity.
05
Align institutional objectives across sectors, issues, and instruments.

A Critical Momentfor Biodiversity and Finance

The Convention on Biological Diversity COP in Cali this year offers a crucial opportunity for global leaders to address the role of finance in driving biodiversity loss. Our report on regulating destructive finance highlights key actions policymakers must take to protect life on Earth. It's time to put an end to unchecked financial flows fueling deforestation and extinction.

Read the report and demand action to regulate finance now.
Banking on Biodiversity Breakdown
Demand G20 heads of state and finance ministers take meaningful action to regulate finance to protect biodiversity at the 2024 summit.
Take Action

Contact the Coalition

Have questions about the data or want to connect with the coalition? Contact us

Press Contact

Emma Rae Lierley
Senior Communications Manager, Forest
+1 (425) 281-1989
emma@ran.org

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