HSBC finances palm-oil firms that are destroying Indonesian rainforests, Greenpeace claims

Greenpeace on Tuesday accused banking giant HSBC of helping to arrange billions of dollars in financing for companies whose palm-oil operations have been blamed for destroying vast swathes of Indonesian rainforest.

The environmental group said the British bank had broken its own guidelines which ban supporting palm oil companies involved in unsustainable practices as it was part of syndicates that had arranged US$16.3 billion of loans since 2012.

The bank was also involved in arranging nearly US$2 billion of corporate bonds, the activists said in a new report.

“HSBC claims it’s a respectable bank with responsible policies on deforestation. But somehow these fine words get forgotten when it’s time to sign the contracts,” said Annisa Rahmawati, senior forest campaigner for Greenpeace Southeast Asia.

The bank said it did not knowingly provide services to directly support palm oil companies that do not comply with their policies on deforestation.

Vast tracts of Indonesian jungle have been cleared in recent years to make way for plantations to feed insatiable global demand for the edible vegetable oil, which is a key ingredient in goods from shampoo to biscuits.

This has led to the destruction of the habitats of endangered animals such as orangutans. Burning land to make way for plantations also causes huge forest fires that burn out of control most years and shroud the region in toxic haze.