Banks have faced increasing criticism in recent years over their ongoing financial support for environmentally destructive industries, but by tweaking their practices they could become part a critical part of the solution to escalating deforestation and habitat destruction worldwide.
That is the core message this month from research by the University of Cambridge Institute for Sustainability Leadership (CISL), which outlines a set of five key actions banks and other financial firms can take to help respond to the biodiversity and climate crises, de-risking their investments in the process.
Released in mid-January, the report from CISL s Centre for Sustainable Finance focuses on soft commodities, such as palm oil, soy, beef and timber products, which are responsible for most deforestation worldwide caused by commercial agriculture.
Banks urged to set time-bound targets to tackle deforestation
A new report has outlined how banks can take proactive steps to improve traceability and accountability of contributions to deforestation, as part of a first step to accelerating action towards a forest-restorative economy.
Some of the world s largest banks have been linked to industries that are causing mass deforestation and biodiversity loss
The new report details an action plan set out by the University of Cambridge Institute for Sustainability Leadership (CISL) as to how banks can play a role in halting global deforestation.
It focuses on the role of financing soft commodities such as palm oil, soy, beef and timber products that are responsible for the majority of deforestation caused by commercial agriculture. With more than 50% linked to services provided by nature, including freshwater, healthy soil and clean air, banks have a key role to play in shaping markets that combat the ecological crisis.