Banks play a much bigger role in funding deforestation than previously thought, finds a report from CDP. One of the report’s most stark findings shows that funding for South-East Asian companies engaged with palm oil, timber or rubber commodities is driven predominately by banks, who provide two thirds (66%) of their capital needs.
The report titled ‘Increasing transparency of banks: The transition to sustainable lending to the forest risk commodity sector‘ addresses how greater bank transparency is key to stop funding dangerous deforestation. According to CDP, the benefits of greater transparency and action are not limited to banks alone. The flow of capital can change – and accelerate – the trajectory of the global economy.
Reaching across the global economy, the financial sector has the power to hinder or hamper our transition to the sustainable economies of the future. This means sustainable lending and transparency benefit both people and the planet.
For Water Europe, transparency and disclosure are essential for a Water-Smart Society.
