According to the nature charity WWF, some 300 financiers based in the city and the UK are directly providing £ 40 billion in funding to companies that threaten Brazilian and Indonesian rainforests.
The funding is provided through investments and loans, the organization said City AM in email.
Most companies are involved in the production of beef, palm oil, soy and cocoa, agricultural products whose agriculture threatens rainforests.
Other common crops include timber, paper, and rubber, all of which are contributing to the destruction of nature in some of the world’s most diverse habitats.
WWF went on to say that the government should prevent UK banks and other lenders from financing deforestation in Brazil, Indonesia and other parts of the world.
“Deforestation is one of the greatest threats to our climate, wildlife and local people who depend on forests for their livelihoods,” said Karen Ellis, director of sustainable economy at WWF UK, based in London.
“Every hectare of rainforest destroyed makes it harder to keep global warming below the 1.5 ° C target set in the 2015 Paris Climate Agreement. forestry risk hasn’t decreased significantly since then, “Ellis said City AM
No rules or legislation
The UK currently has no laws requiring products to come from sustainable sources. Such efforts are made voluntarily, which, according to WWF, leaves UK supply chains exposed to deforestation.
He called on the government to develop a system to ensure British financiers check that they are not causing deforestation elsewhere as the country tries to hit net zero by 2050.
Voluntary commitments are not enough, according to Ellis.
“The UK government is committed to protecting forests and addressing the impacts of nature loss from financial decision making,” he said.
“The environmental bill will require companies trading in palm oil, soybean and other forest-endangered products to carry out due diligence checks,” Ellis continued.
“This must also apply to companies that finance forest-endangered raw materials, as voluntary measures are clearly not giving forests the protection they urgently need.”
Treasury response
In response to the claims, the Treasury said in a statement: “We are committed to the UK being the best place in the world for green and sustainable investment and we were the first country in the world to commit to fully mandatory reporting by banks. companies all over the world. the economy on the financial risks posed by climate change “.
“Our new integrated sustainability disclosure requirements go further, requiring businesses, pension schemes, financial services companies and their investment products to report on the impact they are having on the climate and the environment, helping to ensure give investors the information they need to drive a positive impact environment. “
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