What do big banks have to do with deforestation? 

Australia is a global deforestation hotspot, and our big banks are using your money to fund the destruction.  

You may be wondering, what do banks have to do with bulldozing trees? 

Let’s rewind for a second. Have you ever wondered what happens when you transfer money into your savings account or deposit some cash? It doesn’t all build up into towers of cash in a vault somewhere like you might have imagined when you were a kid. It goes to the bank who is free to use it to lend to others and fund projects. 

Say you are buying your first home; the bank would lend you money to do that. Banks also lend money to finance activities across the entire economy – whether it’s building houses, funding mines, erecting wind farms or establishing cattle farms.  

Some of these activities involve bulldozing forests and threatened species habitat.  

Now, let’s get into the weeds of which banks are financing this destruction.

The Australian banks financing deforestation 

In Queensland alone, between 2018-2020, over 1 million hectares of forest and woodland were bulldozed, mainly for beef production.  

We found that almost a quarter of the deforestation occurred on properties that had received a loan from National Australia Bank, Rabobank, Commbank, ANZ, Suncorp or Westpac.  

NAB and ANZ had the highest exposure to deforestation, with our report tracing nearly 75,000 hectares of bulldozed bush back to these two banks over the two-year period. 

Despite this, and the fact that the rate of land clearing went up in QLD and NSW based on the latest data, neither bank has made a commitment to address the issue or set a timeline for setting a no-deforestation target. Collectively, Australia’s Big Four banks (Commonwealth Bank of Australia, Westpac, ANZ and NAB) hold approximately $4.08 trillion worth of assets.  

That’s a lot of money and power. 

Banks have a responsibility to use this power to help halt and reverse nature destruction, not fund the bulldozing of threatened species habitat and important ecosystems.  

You can explore how many hectares of destruction was financed by each bank on our interactive map.

Deforestation linked to ANZ in Wyaralong, QLD. Credit ACF

Why is deforestation so bad? 

Every two minutes in Australia we lose a football field’s worth of forest, and the impact of bulldozing forests goes well beyond damage to the trees themselves. In fact, the impacts are far-reaching and devastating. 

• Impact on threatened species: Of the 1 million hectares bulldozed between 2018-2020, 360,000 hectares of that was threatened species habitat. That’s the size of two Melbourne CBDs! This is the homes of koalas, regent honeyeaters, greater gliders and other threatened Australian species that simply cannot afford to lose their homes. There are over 2000 species threatened with extinction in Australia and if we continue bulldozing their homes at this rate, we’re going to see some iconic animals plunged into extinction.  

• Impact on people: We all rely on nature to survive. Forests are necessary to provide us with the clean air we breathe, the water we drink and the food on our plates. Deforestation also leads to flooding and droughts which destroy homes and livelihoods.   

• Impact on the economy: Our economy is fundamentally dependent on nature. From agriculture to mining to construction, nature’s ecosystems provide the essential resources and stability that underpin our economies and long-term prosperity. When banks finance deforestation, they are not just destroying habitat and driving species towards extinction. They are also exposing themselves, their shareholders, and the broader economy to escalating environmental and financial risks. 

Regent honeyeaters are one of the many threatened species impacted by deforestation. Credit Ken Griffiths/ Shutterstock

What should banks do? 

The Big Four banks have a choice about what role they play in the deforestation crisis. They can either keep using their customers' money to finance further deforestation, while turning a blind eye to the destruction of our precious forests, rivers, and reefs. Or they can use their power and influence to act responsibly and drive change by setting strict conditions on lending to those that damage and destroy nature.  

We’re asking the Big Four to set a deforestation-free commitment for its financing. In order to make this commitment meaningful they need to be:  

📣 At a minimum, recognising and publicly acknowledging that deforestation is a serious issue in Australia  

🔍 Developing internal systems to help them identify if deforestation is happening on their customers’ properties   

☑️Ensuring internal definitions of forests and deforestation is aligned with science and with advice from environmental experts  

🌳 Engaging with and supporting their customers to protect rather than rip out trees on their properties 

How can you push your bank to do better? 

It can be overwhelming and frustrating to think about your money being used in ways you don’t agree with. Join us in demanding better from the Big Four.  

Send an email to the Big Four asking them to take deforestation seriously. You don’t have to be a customer of the Big Four to send them an email. After all, the future of our planet is everyone’s business. But if your money is with one of the Big Four banks, make sure you let them know you are a customer of theirs!