In 2022, USD 6.1 trillion went to the 350 companies with the highest exposure to tropical deforestation, including almost USD 530 billion invested in companies without a single zero deforestation commitment. Financial institutions can help combat deforestation and promote sustainable commodity production by instituting their own commitments to eliminate deforestation in their portfolios. However, across the zero deforestation commitments of the 150 financial institutions with the most exposure to, and influence on tropical deforestation, the average commitment strength score under Global Canopy’s Forest 500 assessment is only 13%, a decline from the average commitment strength score of 20% in 2020.
The commitment strength score assesses critical components of financial institution commitments, such as whether they are time bound, apply to all financing, and if clients or holdings are required to monitor their operations or suppliers.
In 2022, USD 6.1 trillion went to the 350 companies with the highest exposure to tropical deforestation, including almost USD 530 billion invested in companies without a single zero deforestation commitment. Financial institutions can help combat deforestation and promote sustainable commodity production by instituting their own commitments to eliminate deforestation in their portfolios. However, across the zero deforestation commitments of the 150 financial institutions with the most exposure to, and influence on tropical deforestation, the average commitment strength score under Global Canopy’s Forest 500 assessment is only 13%, a decline from the average commitment strength score of 20% in 2020.
The commitment strength score assesses critical components of financial institution commitments, such as whether they are time bound, apply to all financing, and if clients or holdings are required to monitor their operations or suppliers.