Deforestation: Deforestation Exposure for Financial Institutions

Frontierra provides services for financial institutions to help identify exposure to deforestation within their portfolio or potential investments. Due to the nature of value chains and the complexity of supply chains, combined with challenges around obtaining asset location data, it can be very difficult for financial institutions to understand their deforestation exposure through various companies, beyond self-reported questionnaires and sustainability reports. Frontierra has extensive experience deriving evidence based data to determine deforestation exposure of various companies and the potential risks to financial institutions that lend to or invest in them.

To date, Frontierra has worked with 11 major financial institutions in the UK, Europe, Australia, Brazil and Colombia to determine risks relating to deforestation in the value chain for both sustainability reporting and legislation such as the European Union’s Deforestation Regulation. This work is particularly useful for signatories to the Finance Sector Deforestation Action Initiative and the Investor Policy Dialogue on Deforestation Initiative.