Bankrolling Destruction

The briefing reveals that the US Federal Reserve, Bank of England, and European Central Bank have invested in bonds from agribusinesses like Cargill, ADM, and Bunge, which are linked to deforestation and land-grabbing in regions such as the Brazilian Cerrado and Indonesia. The document argues that such investments subsidize environmentally destructive companies and send a negative signal to private investors. It highlights a gap between central banks' public climate commitments and their actual portfolios, noting that deforestation is often missing from their risk assessments and 'stress tests'. Global Witness recommends that central banks divest from deforestation-linked bonds, implement zero-deforestation policies, and increase prudential supervision of the private financial sector's exposure to these risks.

• The US Federal Reserve, Bank of England, and European Central Bank have purchased debt from agribusinesses linked to deforestation and land-grabbing. Specifically, the US Federal Reserve bought $16 million in bonds from Archer-Daniels-Midland (ADM), Bunge Ltd Financial Corp, and Cargill, Inc. The Bank of England purchased an undisclosed portion of a £150 million Cargill bond, and the European Central Bank invested in debt issued by Bunge Finance Europe B.V.
• The agribusinesses involved—ADM, Bunge, and Cargill—have been linked to environmental destruction and human rights abuses. This includes alleged illegal clearing of rainforests and peatlands in Indonesia, as well as purchasing soy from deforested and illegally acquired land in Brazil's Cerrado ecosystem. Additionally, these companies have been accused of fueling human rights abuses and violating land rights of traditional communities in Brazil's Bahia state and Indonesia.
• Central banks are failing to integrate deforestation risks into their financial stability frameworks. While they acknowledge 'physical risk' and 'transition risk' from climate change, deforestation is largely absent from their guidance to private financial institutions and their climate 'stress tests'. For example, the Bank of England's 2021 climate stress tests did not measure exposure to biodiversity loss or deforestation specifically.
• There is a significant lack of transparency regarding the holdings of the Bank of England and the European Central Bank. Neither institution has published the specific values of their holdings in these deforestation-linked companies. The ECB has argued that detailed breakdowns by issuer could compromise monetary policy effectiveness.
• Central bank bond purchases effectively subsidize deforestation-linked companies by reducing their borrowing costs and signaling legitimacy to other investors. This creates a 'carbon bias' where public funds support carbon-intensive sectors, which in turn encourages private banks and asset managers to maintain similar investments.

APA

Global Witness (2022). Bankrolling Destruction. https://globalwitness.org/documents/123/Bankrolling_deforestation_-_Central_banks_accused_of_financing_environmental_d_QheiERP.pdf

Chicago

Global Witness. Bankrolling Destruction. 2022. https://globalwitness.org/documents/123/Bankrolling_deforestation_-_Central_banks_accused_of_financing_environmental_d_QheiERP.pdf.

Wikipedia

{{cite report |author=Global Witness |title=Bankrolling Destruction |date=September 2022 |url=https://globalwitness.org/documents/123/Bankrolling_deforestation_-_Central_banks_accused_of_financing_environmental_d_QheiERP.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalwitness2022bankrolling, author = {{Global Witness}}, title = {{Bankrolling Destruction}}, institution = {Global Witness}, year = {2022}, month = sep, url = {https://globalwitness.org/documents/123/Bankrolling_deforestation_-_Central_banks_accused_of_financing_environmental_d_QheiERP.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }