Anthropocene Fixed Income Institute logo.
Nature loss

Deforestation Debt: Q1 recap and outlook

Written by Patricia Hutchinson

Download full paper (0.2mb)

The Deforestation Debt Universe provides insights on investors’ potential exposure to deforestation-linked risks via corporate issuers and explores the deforestation policies of a selection of banks which facilitate capital flows to these entities.

In Q1 2025, over 62 billion in USD equivalent debt was placed by companies identified as having material deforestation exposure, with Mars, Johnson & Johnson, and PepsiCo as the largest issuers. Labelled instruments, including sustainability-linked and green bonds, accounted for just 2.9% of this total.

In this report we highlight significant issuance. We also analyse the relevant syndication fees earned by global banks. This reveals that Citi, JP Morgan, and Bank of America each generated over $20mn in fees from transactions involving deforestation-linked companies in Q1.

In addition, we include a review of palm oil policies for selected banks, highlighting the consistent exclusion of far downstream companies, such as the ultimate retailers, from deforestation-related due diligence.

Further, we identify those corporates that have debt maturing shortly, including Amazon.com, Shell, GSK, and Target. Such companies may be good engagement opportunities for investors as they may prepare to issue new instruments.

About the author

Before you sign up

By completing this form, you agree to AFII sharing information that we think you may be interested in, including our insights on climate transition. See our Data Protection Policy for more information about how we collect and use your personal data, and any rights you may have in relation to your personal data. You may opt out from our distribution list at any time.