Taking Deforestation Out of Banks Portfolios in Emerging Markets

In Southeast Asia, large-scale logging is primarily the result of unsustainable production practices in the agriculture and forestry sectors. Alongside producers, purchasers, consumers and government, the finance sector is a key actor in steering the sustainable production of goods as well as ecologically sound infrastructure expansion. This project supports the inclusion of environmental and social standards into credit decisions made by financial institutions in target countries. This includes a set of criteria for deforestation-free production. Together with the partner institutions, sector-specific guidelines are being prepared, new, ‘green’ financial products developed and improvements made to existing products. Consulting and training also ensures that financial market regulators will adopt and integrate environmental and social standards.