150 financial institutions channeled US$8.9 trillion to companies driving deforestation, with 60% lacking any deforestation policy.
Vanguard, BlackRock and JP Morgan Chase collectively provided over US$1.6 trillion to forest-risk companies, yet have limited or no deforestation safeguards.
Only BBVA, Deutsche Bank and Lloyds Banking Group screen all high-risk commodities for deforestation risk.
A new Forest 500 report by nonprofit Global Canopy reveals that in 2024, the 150 financial institutions with the greatest exposure to deforestation risk collectively financed US$8.9 trillion to companies in the so-called “deforestation economy.” Of this, US$864 billion went to firms without any public commitment to halt deforestation.
The report highlights the outsized influence of Vanguard, BlackRock and JP Morgan Chase, which together provided over US$1.6 trillion to the 500 most forest-dependent companies. Neither Vanguard nor BlackRock has any public deforestation policy, while JP Morgan Chase limits its no-deforestation policy to palm oil.
Deforestation accounts for 11% of global greenhouse gas emissions, and the World Economic Forum’s Global Risks Report 2025 ranks nature loss among the top four global risks over the next decade. “Unless financial institutions engage portfolio companies to act on deforestation risk – for instance, through strong stewardship of investee companies – their financing activities will undermine the positive impact of any transition finance they provide,” Global Canopy warns.
RELATED ARTICLE: Financial Institutions “Woefully Behind” on Deforestation Risk, Finds 9th Annual Global Canopy Forest 500 Report
Among the 60 financial institutions with deforestation policies, only 27 screen and monitor portfolios for compliance with deforestation-free standards, 32 have engagement processes for non-compliant clients, and just 17 threaten divestment if compliance is not achieved. Notably, BBVA, Deutsche Bank and Lloyds Banking Group are the only institutions to screen and monitor all high-risk commodities identified in the report.
Despite the upcoming EU Deforestation Regulation and mounting climate risks, just 37% of financial institutions recognized deforestation as a business risk in 2024—virtually unchanged from 2023. The report calls deforestation “a solvable crisis” and a key entry point for addressing broader nature-related risks, urging transparent progress disclosure and stronger engagement to drive systemic change.
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