Climate-Related Financial Risks of Deforestation in Commodities – CFTC Recommendations
Climate Advisers recently came out with strong support for efforts by the Commodity Futures Trading Commission (CFTC) to expand its “capacities to define, identify, measure, monitor, assess, and report on climate-related financial risks and their effects on financial stability,” as recommended by the 2021 Financial Stability Oversight Council report. READ COMMENT LETTER This is particularly […]
Why Disclosure of Emissions from Deforestation Protects Investors
Emissions from deforestation are increasingly being seen as a material risk for investors. This isn’t only because the emissions released by deforestation drive climate change, threatening global economic stability and the lives of millions. It is because society’s reactions to climate change, known as climate transitions, will impact a wide range of holdings investors may […]
Deforestation’s Role in Financial Disclosures
Climate Advisers recently submitted a comment letter to the International Sustainability Standards Board (ISSB) in response to its efforts to establish a global baseline of climate-related financial disclosures. DOWNLOAD COMMENT Disclosures on climate-related financial risks are key to providing investors and markets with the information needed to make decisions on the financial risks driven by […]
Tackling Deforestation and Protecting Investors: Material Financial Risks From Tropical Commodities
The US imported $618 billion in tropical commodities in 2020 ($76 billion in tropical agricultural commodities). Here’s why that matters as the Securities and Exchange Commission (SEC) deliberates on climate-related financial disclosures. In anticipation of the SEC releasing new proposals for regulating climate-related financial risks, Climate Advisers has published a report on the risks to […]
Climate-Related Forest, Food, and Land Risks Threaten US Financial Stability
With 40% of US GDP exposed to climate-related risks from the land use sector, this report analyzes the source of these risks and shares recommendations for the federal government to protect US financial stability. In the US, 40 percent of GDP is generated from sectors directly exposed to tropical forest, food, and land risk, but […]
Deforestation Risks and German Financial Institutions
Meeting the goals of the Paris Agreement will require transformations in every sector of the global economy. Commodity producers and traders are in the spotlight due to their direct links to activities causing deforestation which drives climate-changing emissions. High-profile investors are increasingly pushing for action on deforestation from both companies and governments. However, deforestation risk […]
Shifting Grey to Green: Climate Advisers Deforestation Risk Rankings
An Environmental, Social, and Governance (ESG) ranking with a deforestation lens Key takeaways from Climate Advisers Deforestation Risk Rankings: Companies with high rankings have policies in place to mitigate material risks of being linked to ESG issues, and specifically, deforestation. Meanwhile, companies with low rankings should consider conducting an ESG risk assessment and strengthening policies […]
A Spotlight on Exponential Peruvian Palm Oil Growth: ESG Risks for Cargill Subsidiary, Cargill Americas Peru SPL
A sharp uptick in deforestation rates over the past decade has put Peru in the spotlight for illegal mining and agricultural expansion. This report explores the exponential growth of the Peruvian palm oil industry in recent years and its relationship to deforestation in the Amazon. Through a case study of a key player in the […]
Sustainability Lessons Learned From Palm Oil
The palm oil industry has recently made progress on sustainability issues, but as producers emerge in Latin America, how can they use past lessons to continue improving the industry? This report reviews past lessons and the current state of the industry to provide clear recommendations for producers and civil society to protect forests.
JPMorgan’s Opportunity to Address Deforestation
Where can JPMorgan find opportunities to address its exposure to deforestation? Climate campaigners have heightened awareness in recent years over the role of agricultural commodities in deforestation, which accounts for 15 percent of annual global emissions. This pressure from NGOs will only increase in the coming years. Companies operating in Brazil’s soy and beef industries […]
