Asset management companies that are signatories of the Glasgow Financial Alliance for Net Zero (GFANZ) are still investing in sectors that are tied to deforestation.
That’s according to new research by Global Witness, which has found that upwards of $8.5 billion (£7.2bn) is being invested by these companies into firms that lead to forest loss.
Since GFANZ was founded just over a year ago, there has only been a 3% reduction in investments that cause deforestation according to the report.
The $8.5 billion (£7.2bn) currently being invested is from 360 signatories of the alliance.
Deforestation accounts for 11% of the world’s global emissions, mostly driven by agriculture.
The study also alleges that financial institutions in general have made deals upwards of $157 billion (£134bn) with firms that are accused to be destroying forestry in Brazil, Asia and Africa.
Veronica Oakeshott, Forests Campaign Leader at Global Witness, said: “A year on from COP26, GFANZ membership is at risk of becoming little more than a badge to be worn by banks and financiers, who continue to plough money into practices that are destroying our forests.
“If we want any forests left standing, and to have any prospect of avoiding catastrophic climate change, governments must introduce legislation that stops investors contributing to the destruction of rainforests.”
GFANZ has been approached for comment.