Skip to Content

Finance and trade

Fern wants EU financial institutions to stop funding forest destruction and human rights abuses.

The financial sector plays a crucial role in enabling activities that lead to forest loss and unfair treatment of forest communities, including providing project finance and financial services that enable forest loss. The EU financial sector’s role in funding and facilitating the expansion of large scale environmentally and socially destructive agriculture is significant.

Fern works to curb this negative impact by strengthening the framework of laws, rules and accepted practices governing how EU banks and Financial Institutions handle investments and transactions relating to forests and forest communities, especially land tenure. We research ways that Anti-Money Laundering rules can be used to tackle illicit money flows related to illegal logging.

Fern’s research has been compiled into a blueprint for an Action Plan on deforestation: ‘Protecting Forests, Respecting Rights’. ‘Clearcut, making EU financial institutions work for forests and people’ showed that the top 20 EU-based financial institutions (including banks, institutional investors and alternative investment funds) have provided nearly USD 18 billion of outstanding loans and underwriting services to foreign agriculture companies based in developing countries.

Taking Stock’ reveals the potential negative impact that public financing through Development Finance Institutions are having on forests and peoples.

 

Most recent publications

Company promises: How businesses are meeting commitments to end deforestation

This report follows a spate of recent work examining company commitments to reduce or end their role in deforestation. What makes this report different is that it looks at the issue from the companies’ perspective, asking them why they have made these commitments; how they monitor progress; the economic costs of these commitments and, importantly, what they perceive as the barriers to achieving their commitments. The report ends with ways forward suggested by interviewees. They conclude that action is needed from companies, producer and consumer country governments and other stakeholders.

DocumentSize
PDF iconCompany promises.pdf4.03 MB

Major companies want more government support to end deforestation

Governments should do more to help companies whose products drive tropical deforestation, a new survey of some of the world’s biggest producers and buyers of palm oil, timber, cocoa and rubber has found.

DocumentSize
PDF iconCompany Commitments FINAL.pdf361.99 KB

BLOG: Anti-money laundering not an easy weapon to use against timber crime

by Mark Gregory

Estimates suggest that between 15% and 30% of the international trade in timber comes from illicit sources. Nobody knows how much criminal money this generates but the figure is certain to run into billions of dollars every year.

Financing land grabs and deforestation: the role of EU banks and investors

Fern's latest research shows that European Union-based banks and investors have played a massive role in financing companies at the heart of concerns about land grabbing and tropical deforestation. We looked in depth at the sources of funding for 23 of the world's biggest agriculture companies, including leading palm oil producers and traders. Click here for the full report.

DocumentSize
PDF iconFinancing land grabs final.pdf2.85 MB

BLOG: HSBC – the bank we hate to love

by Mark Gregory

Why HSBC’s decision to keep its headquarters in the UK might be good news for forest campaigners.

Stashing the cash: banks, money laundering and the battle against illegal logging

Illegal logging is believed to account for between 15% and 30% of the international trade in timber, with revenues running into billions of dollars each year. This has prompted the EU, the World Bank and others to call for more effective use of anti-money laundering procedures as a way of tackling the illicit financial flows that support illegal logging. This report looks at whether action on money laundering could be a worthwhile lever to help preserve the world’s forests.

Pages