Los EU banks make up the second financial center in the world in financing sectors that put nature at risk and contribute to deforestation. Spain is among the four countries in the UE who lead the financing of these companies and sectors. Old EU banksamong which is the Santander Bankgranted 22.1% of credit, globally, to large risk companies, due to their links with the deforestation. He Santander Bankthe sixth European banking entity in lending to groups in risk sectors, financed five of the six business groups analyzed.
An investigation, published by the organizations Greenpeace International, Milieudefensie and Harvest (and supported by 18 environmental organizations), reveals that, Since the signing of the Paris Agreement in 2015, European banks have lent around €256 billion to companies that put forests, savannahs and other natural ecosystems critical to the climate and biodiversity at risk.
The research, based on data collected by the independent research center Profundo, focuses on the relationship between financial institutions and large international companies – such as JBS, Bunge, Cargill or Sinar Mas – who are major global producers, processors and traders of soybeans, beef, palm oil, rubber, wood and other raw materials. The activity of these large companies is strongly linked to the deforestation and carries a high risk of ecosystem destruction. The report concludes that the EU is the second largest financial center in the world in terms of financing these risk sectors for ecosystems, due to the destruction of nature.
“The UE, which has a high opinion of itself regarding the protection of the climate and nature, looks the other way when its financial institutions invest money in companies linked to the massive destruction of nature and the violation of human rights. “We cannot fight the climate crisis and the loss of biodiversity and, at the same time, finance the destruction,” declared Miguel Ángel Soto, head of forests at Greenpeace Spain.

The report shows that some of the largest EU-based banks, such as BNP Paribas, Deutsche Bank, ING Group, Rabobank y Banco Santander, provided, between 2016 and early 2023, a staggering 22.1% of total credit globally to large companies in sectors whose activities pose a high risk of destruction of nature. The vast majority (86.6%) of this credit came from banks based in France, the Netherlands, Germany and, also, Spain. Banks, pension funds and asset managers, based in the UEalso provide 9.4% of current global investments in natural risk sectors.
The irresponsibility of Banco Santander
The report includes the analysis of the role of financial institutions based in Spain, such as banks Santander, BBVA or Caixabank. The figures amount to an estimate of 29.6 billion dollars (27.2 billion euros) in credit, since 2016, and 1.1 billion dollars (1.0 billion euros) in investments. These figures make the Spanish financial sector the fourth largest credit provider and the tenth largest investor in these sectors among EU members, and the tenth largest in credit in the world (25th in investment).
With respect to Santander Bank, this entity is the sixth largest credit provider, based in the EU, for large business groups active in risk sectors, providing, since 2016, credit worth $21.3 billion and investment worth $255 million. He Banco Santander financed five of the six business groups with direct links (or in their supply chain) to the recent destruction of ecosystems. Specific Bunge, Cargill, JBS, Marfrig and Sinar Mas. In the case of the meat company Marfrig, the Santander Bank It was the largest credit provider among EU banks.
“The decarbonization objectives of the Santander Bank and its commitment to achieving net zero emissions by 2050 are incompatible with the destructive activity of its current customer base,” Soto recalled. “The bank’s current strategy is a fraud, consisting of calculating its carbon footprint without taking into account the huge amount of greenhouse gas emissions coming from the deforestation caused by their clients.”
What happens to EU legislation against deforestation
The EU Deforestation Regulation (EUDR), adopted in May 2023, aims to reduce the impact of electricity consumption UErequiring companies to import and market only products free of deforestation. However, The standard does not currently include financial flows that contribute to the destruction of ecosystems.
The European Comission has established a timetable to review the role of finance in the deforestation and forest degradation and, if necessary, present a legislative proposal by June 2025. For this reason, Environmental and human rights organizations are urging the EU to close this loophole and stop financial flows aimed at the destruction of nature.
“The evidence is strong and clear: European banks continue to finance the destruction of forests around the world to the tune of billions of euros. However, the financial sector is excluded from the anti-law.deforestation from UE, which undermines efforts to address global climate change and biodiversity protection goals. It is time for the UE put a stop to the financial institutions that are destroying the planet” declared Jaume Grau, from Ecologistas en Acción.