Financial institutions are exposed to deforestation risks via their loans and investments in companies that produce, trade or use soft commodities, including soy, beef and palm oil. This encompasses a wide range of companies at all stages of the supply chain, from those managing plantations, to commodity traders, processors and manufacturers, and retailers across a wide sector of industries from food to cosmetics. Agricultural expansion is driving over 70 percent of tropical deforestation globally, as forests are cleared to make way for land to grow crops or raise cattle.
