Standard Chartered has signed up to the ‘soft commodities compact’ which ensures their palm oil, soy and timber clients’ activities are consistent with ‘zero net deforestation’ by 2020. Many global food manufacturers have signed up to anti-deforestation initiatives in recent years and now pressure is being put on banks to do the same. Nine other banks have already signed this agreement, including RBS, UBS and Santander.

A recent study in Nature Climate Change suggests that the rate of Deforestation in Indonesia is twice what is reported by the Government and that the Government’s 2011 regulations to combat deforestation have been largely ineffective. The report cites a Science report on the disparity between deforestation rates reported by the Indonesian government and the rate of deforestation calculated from satellite data. Green groups lobbying against palm oil deforestation and tropical forest loss claim the findings strengthen the argument that the Indonesian Government’s anti-deforestation legislation needs strengthening.