UK Banks and Investors Continue Funding Deforestation Despite COP26 Pledges, New Report Reveals

A new analysis by Global Witness reveals that since the COP26 climate conference in 2021, UK banks have provided over £1 billion ($1.4 billion) in financing to companies driving deforestation, while UK investors held £1.4 billion ($1.8 billion) in bonds and shares of these ‘forest-risk’ companies. These companies, involved in industries like beef, palm oil, and soy, are responsible for significant tropical deforestation.

Despite the UK’s commitment to ending deforestation by 2030, British banks such as HSBC, Barclays, and Standard Chartered remain major financiers. HSBC alone accounted for over half of UK credit to forest-risk companies. Many UK investors lack clear commitments to remove deforestation from their portfolios, further complicating efforts to meet global deforestation goals. The analysis highlights a disconnect between financial pledges and real action, and calls for stricter government regulations to address the financing of deforestation-linked industries.

To dive deeper into the full findings and learn how UK financial institutions are fueling deforestation, click here to read the complete report.