Financial institutions are exposed to the risks associated with deforestation through their investments in and lending to companies involved with soft commodities. However, while a number of financial institutions have made progress in integrating the environmental and social impacts of soft commodities into their risk management frameworks, a larger number are not taking action.
This White Paper looks at why financial institutions globally
are not taking sufficient action or are finding it more difficult to do so than envisaged, and recommends ways forward for the various groups concerned. The recommendations are targeted first at financial institutions and second at other stakeholders in the soft commodity value chain, namely those who can provide the enabling environment for financial institutions to act.