Trase Finance brings transparency to more than $1 trillion in deforestation financing

New open-source data platform shines light on the deforestation risk facing more than 12,000 financial institutions who finance commodity traders.

Today, data on financing linked to deforestation risk is publicly available at scale for the first time. Trase Finance, an initiative of Global Canopy, Stockholm Environment Institute and Neural Alpha, enables financial institutions to systematically identify their exposure to deforestation-risk through their financing of commodity traders.

Following a three month testing phase, the platform is now ready to be used by those working in the finance sector, as well as campaigners, journalists and anybody who wants to learn more about the financing of tropical deforestation.

Focus on commodity traders

Trase Finance covers the financing of commodity traders exporting Brazilian beef, Brazilian soy and Indonesian palm oil, and will expand to cover the financing of other commodities mapped by the Trase initiative – which is set to expand to cover more than half of the volume of globally traded soft commodities by 2021.

Exports of Brazilian soy alone are estimated by Trase Finance to be associated with 50,000 hectares of deforestation risk, which can be traced to US$379 billion of equity investments, US$250 billion held in bonds, and US$160 billion of loans. The tool identifies the specific financiers of the commodity trading companies and enables users to understand their deforestation risk.

Enabling action – and accountability

Beyond enabling financial institutions to take concrete steps to addressing their deforestation risks, Trase Finance allows civil society, governments and regulators to strengthen accountability of financial institutions by assessing their exposure to deforestation risks and monitoring progress against policy commitments.

Save the date: launch webinar 28 October

Save the date for the Trase Finance launch webinar on 28 October, where a panel of finance sector and civil society representatives will discuss insights from the data and the role of the finance sector in tackling deforestation in the commodities supply chain. Sign up to the Trase Finance mailing list to receive details on speakers and registration direct to your inbox.

Stay in touch

To stay tuned with the latest from Trase Finance, sign up to the Trase Finance mailing list and connect with us on social media @globalcanopy @TraseEarth