A newly launched data platform, Forest IQ, aims to equip financial institutions with comprehensive insights regarding the deforestation practices of over 2,000 major companies. This initiative is the result of a collaborative effort among several not-for-profit organizations, including Global Canopy, the Stockholm Environment Institute, and ZSL, designed to assist investors in eradicating deforestation from their investment portfolios.
Financial institutions can leverage Forest IQ to effectively screen their portfolios, engage with relevant companies, manage risks associated with deforestation, and meet their climate and nature sustainability targets. The introduction of this platform comes at a time when there is increasing regulatory and compliance pressure on financial organizations to eliminate deforestation from their portfolios in line with their climate objectives.
The United Nations’ High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities has set a target for achieving deforestation-free finance by 2025. According to Niki Mardas, Executive Director of Global Canopy, “Forest IQ will simplify the process for financial institutions to contribute to a swift, market-wide shift away from deforestation. It offers a straightforward and practical benchmark for companies concerning their deforestation impact while also integrating extensive datasets that cover over 2,400 indicators related to deforestation, land conversion, and human rights issues.”