Data on private finance flowing to the forest sector – both “green” finance earmarked for forests and potentially harmful “gray” finance – remains poorly tracked and difficult to measure. However, available evidence suggests that private investment into unsustainable agricultural commodity production and extractive activities such as mining – both known drivers of tropical deforestation – continues to flow largely unchecked.
Estimates suggest that private finance provided to forest-risk commodity supply chains and mining activities totaled at least USD 442 billion between 2010 and 2022. This includes USD 343 billion in financial services provided to 300+ companies directly involved in the beef, soy, palm oil, pulp and paper, rubber, and tropical timber supply chains; and USD 99 billion provided to 23 mining companies operating in the world’s three largest tropical forest regions.
There is growing recognition that companies and financial institutions should consider the risks their activities pose to the environment, but recent analyses of the lending behavior of financial institutions with forest-risk investments showed that most still do not have deforestation safeguards in place.
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Note: Data and underlying methodology are reported in the 2023 Forest Declaration Assessment.
Full description, licensing, and other information available at the original data source (Forest & Finance).
Data on private finance flowing to the forest sector – both “green” finance earmarked for forests and potentially harmful “gray” finance – remains poorly tracked and difficult to measure. However, available evidence suggests that private investment into unsustainable agricultural commodity production and extractive activities such as mining – both known drivers of tropical deforestation – continues to flow largely unchecked.
Estimates suggest that private finance provided to forest-risk commodity supply chains and mining activities totaled at least USD 442 billion between 2010 and 2022. This includes USD 343 billion in financial services provided to 300+ companies directly involved in the beef, soy, palm oil, pulp and paper, rubber, and tropical timber supply chains; and USD 99 billion provided to 23 mining companies operating in the world’s three largest tropical forest regions.
There is growing recognition that companies and financial institutions should consider the risks their activities pose to the environment, but recent analyses of the lending behavior of financial institutions with forest-risk investments showed that most still do not have deforestation safeguards in place.
—
Note: Data and underlying methodology are reported in the 2023 Forest Declaration Assessment.
Full description, licensing, and other information available at the original data source (Forest & Finance).
