Financial institutions

To shift the flow of finance towards more sustainable business practices, financial institutions require accessible and robust data. We work with some of the world’s biggest investors and lenders, providing them with the information they need to identify, monitor and manage environmental risks in their portfolios. We also advocate for changes to the rules of the game – so that financial institutions can no longer ignore their dependence on nature.

Improving reporting for nature for the finance sector

We are working to catalyse a Taskforce on Nature-related Financial Disclosures (TNFD), a nascent reporting initiative bringing together over 100 governments, financial institutions, corporates, regulators and civil society organisations. A working group is currently resolving the reporting, metrics, and data needs of financial institutions that will enable them to better understand their risks, dependencies and impacts on nature. In collaboration with the corporate sector, new reporting frameworks will be developed in 2021, and tested early in 2022 before being made available worldwide. Financial institutions are invited to get involved by emailing tnfd@globalcanopy.org.

Enabling nature-positive investment

We offer a range of tools that enable the finance sector to steer investment and lending towards outcomes that are nature-positive. ENCORE is used by financial institutions to better understand and visualise how companies in their portfolios depend and impact upon nature, and has been used recently by the Dutch National Bank, Swiss Re and the World Economic Forum. Trase Finance helps financiers develop frameworks, exclusions, policies, and other features in ESG funds, green bond issuances, sustainability linked loans and other green financial products. Combined, Trase Finance and ENCORE enable a portfolio-wide view – the former covering entire export markets for key commodities, and the latter bringing comprehensive coverage to all subsectors in the economy.

Screening portfolios for deforestation risk

Our unique data on deforestation risk exposure of companies, as well as their policies to mitigate these risks, is used by banks and investors to screen and monitor their portfolios. For example, Aviva Investment Management have used Forest 500 data to help screen their portfolios for exposure via particular companies. A growing number of investors are using Trase Finance 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.

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