Deforestation is rising again
Indonesia’s primary forest loss declined from 929 thousand hectares in 2016 to 203 thousand hectares in 2021, but rose again to 230 thousand hectares in 2022 and 292 thousand hectares in 2023.
About the initiative
What Is The Greenwash Index?
An independent effort to identify companies whose operations conflict with ecological, social, and ESG principles.
GWI
The Greenwash Index website is our effort to create an exclusion list: a list of entities that do not fulfil the general criteria of a category.
In sustainable finance, it helps identify companies involved in operations that conflict with ecological responsibility, social responsibility, and ESG.
These companies are categorized as unfit to receive financial leverage from financial service institutions.
Background of the Exclusion List
The Paris Agreement set emission-reduction targets while Indonesia reinforced its climate targets through the Enhanced NDC policy.
Financial flows carry forest risk
Forests & Finance estimates that an average of $9 billion in loans and guarantees between 2016 and September 2023 posed significant risks to Indonesia’s forests.
Sustainable finance remains inadequate
The 2022 Bank Ranking Report found that 11 major Indonesian banks had inadequately implemented sustainable-finance policies.
Leading banks still fall short
Indonesia’s five top-ranking banks remained in inadequate categories, scoring only 1.9 to 3.6 out of 10 under Fair Finance Guide International criteria.
Purpose of the Exclusion List
Limit harmful financing
Limit funding or investment towards corporations indicated to cause negative ESG impacts.
Align financial portfolios
Ensure institutional portfolios align with sustainability values and principles.
Raise ESG standards
Encourage forest-risk corporations to improve ESG standards before securing funding.
Protect institutional reputation
Reduce association with controversial, harmful, or unethical entities and activities.
See how companies are assessed
Explore the framework, indicators, and considerations behind the Greenwash Index.