Connect with us

Hi, what are you looking for?

World News

World’s top finance firms continue to fuel deforestation, report warns

The world’s largest financial institutions increased their backing of companies in the agriculture, forestry and land use sectors most responsible for deforestation in 2021, a new study showed on Tuesday.

Issued by the Forests & Finance Coalition of NGOs, which looks to improve transparency, policies, systems and regulations in the financial sector, the report found that finance to those companies rose over 60% to $47 billion between 2020 and 2021.

The analysis comes ahead of the next round of global climate talks in November at which protection of rainforests and other climate-crucial biodiversity are set to be a central theme.

Banks have pumped $267 billion into forest-risk commodity firms since the signing of the Paris Agreement on climate in 2015, the study said, while investors were holding $40 billion in bonds and shares as of September this year.

“The world’s financial institutions are actually increasing their lending to the very industries driving humanity to the brink,” Tom Picken, director of Rainforest Action Network’s Forest and Finance Campaign, said in a statement, citing “dangerously inadequate” policies.

Forests & Finance policy assessment of 200 financial institutions exposed to companies working in areas at risk of deforestation in Latin America, Southeast Asia and West and Central Africa scored 59% of them under one out of 10, sign of “an abject failure” to mitigate environmental, social and governance (ESG) risks.

In Indonesia, for example, southeast Asian pulp and paper producers are continuing to expand production, putting the country’s remaining forests under pressure; while in Brazil, the beef industry has contributed to 80% of the Amazon deforestation since 1985, the report said.

Finance firms’ policies on providing credit or investment to both sectors were “very weak”, the study also noted, and have done little to avert environmental degradation, support indigenous peoples’ and local communities’ rights or ensure companies are not exploiting people through forced labor.

“This latest assessment shows how big banks and institutional investors are blind to the urgency of the moment,” Picken stated. — Reuters

    You May Also Like

    Business

    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...

    Business

    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...

    Business

    Since the rise of online casinos, cybersecurity has become a major concern for both casino operators and players alike. The transactions that go around...

    Business

    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...

    Disclaimer: rightdecisionnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023 rightdecisionnow.com | All Rights Reserved