Linking deforestation risks to investment value

There is growing evidence that loans to, and investments in, companies linked to deforestation can pose significant risks to financial institutions.

In this briefing, we explain the different kinds of risks that financial institutions are exposed to, how these can translate into lower loan and investment values, and how financial institutions can mitigate these risks.

These risks include:

• Transition risks
• Market access risks
• Policy risks
• Regulatory risks
• Reputational risks
• Physical risks