Financial institutions

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Screening portfolios for deforestation risk

Global Canopy is a leading data provider for financial institutions. Our tools and platforms are used by banks and investors to screen and monitor their portfolios.

ENCORE is used by financial institutions to better understand and visualise how companies in their portfolios depend and impact upon nature. It has been used by HSBC and BNP Paribas, the Bank of England, Bank Negara – the Malaysian Central Bank, and the Dutch National Bank, and is frequently referenced by the TNFD, Science Based Targets Network, Global Reporting Initiative and other corporate assessment and disclosure frameworks as a leading tool for business reporting.

Our Trase and Forest 500 platforms provide information on the deforestation risk exposure of companies. Aviva Investment Management has used Forest 500 data to help screen its portfolios for exposure via particular companies, while investors use Trase to monitor portfolios of companies and specific issuances for changing risk profiles, to rank and benchmark holdings against peers, and to support stewardship and engagement activities.

Forest IQ is a powerful tool for financial institutions to enable their transition to deforestation-free financial portfolios. It provides open-access data and metrics on how more than 2,400 major companies address their links to deforestation, conversion of natural ecosystems and associated human rights abuses. The additional, paid-for Forest IQ Pro gives users access to licensed data, financial identifiers and a bespoke API.

Training and guidance

Global Canopy works to shift global financial flows away from nature-negative outcomes, to support a transition to a nature-positive world economy.

Deforestation-Free Finance presents a suite of practical guidance to support financial institutions to tackle exposure to deforestation in their portfolios. This includes the Finance Sector Roadmap for Eliminating Commodity-Driven Deforestation and the Roteiro de Finanças Livres de Desmatamento, and a number of specific pieces of guidance produced with partners, such as:

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Global Canopy is a founding partner of the Taskforce on Nature-related Financial Disclosures (TNFD), which launched its final framework in September 2023. The recommendations guide organisations to identify, assess, manage, and – where appropriate – disclose their evolving nature-related dependencies, impacts, risks and opportunities.

Global Canopy provides technical expertise and supports organisations through education and learning to get started with the TNFD recommendations.

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