Environmental group Greenpeace International...slammed HSBC Holdings Plc for allegedly funding palm oil companies in Indonesia that it says have destroyed tropical rainforests.

HSBC and other banks lent to palm oil companies that are "responsible for unacceptable activities", Greenpeace said in a report, highlighting loans worth hundreds of millions of dollars given out by the London-based bank since 2012 to six companies allegedly responsible for deforestation in Indonesia.

The report, which also alleges violations of labor laws and operating licenses, follows a trend of increasing pressure being brought to bear by green groups on corporations in Europe to clean up their supply chains in countries such as Indonesia and Malaysia…