European banks have lent almost €256 billion to companies active in sectors like soy, palm oil and cattle since 2015, with ING and Rabobank in the top five,   according to new research by Greenpeace International and other NGOs.

But the investments lead to deforestation and the destruction of savanna, and put climate-critical natural ecosystems at risk, the report says.

Between them, the two Dutch banks, BNP Paribas, Santander and Deutsche Bank provided 22% of total global credit between 2016 and early 2023 to major corporate players in these sectors. 

ABN Amro is also in the top ten, and together Dutch financial institutions are responsible for 23% of EU funding for major players in ecosystem risk sectors, the second highest figure in Europe.

At the same time, the EU has adopted landmark legislation, the EU Deforestation Regulation (EUDR) to ban products derived from these commodities when they are associated with deforestation from its markets. 

The EUDR, at present, does not regulate the finance sector but a targeted review will soon take place, giving the European Commission a “golden opportunity” to close this loophole, Greenpeace said. 

In October, hundreds of climate activists blocked Rabobank’s Dutch HQ, demanding it stops financing industrial agriculture, which is destroying biodiversity, and pay for the damage caused.

“The bank has made billions by financing companies that destroy nature over many years, both in its home country, the Netherlands, and elsewhere,” Greenpeace said. 

ING has also been targeted by climate campaigners, who have blocked the Amsterdam ring road twice at the location of the bank’s former headquarters.