While China touts climate goals and sustainability, its banks are pouring billions into commodities from the world’s rainforests, an investigation by the international NGO Global Witness has found.

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Chinese banks became the largest creditors of “forest-risk” companies globally between 2018-2024 – excluding financial institutions based in Brazil and Indonesia – according to a new analysis by Global Witness, based on data released in September 2024 by the Forests & Finance coalition.

The financial sectors of Brazil, Indonesia and Malaysia provide a disproportionate amount of “forest-risk” financing to commodity producers in their own countries and are excluded from this analysis, which focuses on international financial flows. When including these countries, China ranked third globally overall in 2023, the final year for which full data is available.

The Forests & Finance database, compiled by Dutch research firm Profundo, tracks financial flows to over 300 “forest-risk” companies involved in agricultural supply chains such as beef, palm oil and soy production – industries that are major drivers of tropical deforestation.

Key findings

• Recent data shows that Chinese banks have become the largest creditors to “forest-risk”* companies, after major producing countries Brazil and Indonesia, with over $23 billion in financing provided from 2018 to 2024.
• Key Chinese banks, including CITIC, Industrial and Commercial Bank of China and Bank of China, are among the top creditors for “forest-risk” companies such as Royal Golden Eagle Group, which has faced repeated allegations that its supply chain has driven deforestation.
• The increasing flow of finance to “forest-risk” companies undermines China’s climate and environmental goals under the Glasgow Leaders' Declaration and national Green Finance Guidelines.
• Meanwhile, Chinese banks rank poorly compared to their international counterparts in terms of deforestation-related policies, with four out of six major Chinese lenders scoring zero in the Forest 500 annual policy assessment.