Tackling deforestation risk in financial portfolios

May 20, 2024 EcoVadis EN


While financing of deforestation has been business-as-usual for decades, there are signs of change. Leading financial institutions are beginning to chart a way forward, while laggards ignore escalating risk at their peril.  

This risk ties back to negative impacts on the ground. When exposed to environmental and social harms in their operations or supply chains, companies can face legal, market, operational, regulatory and reputational risks that threaten financial performance. For financial institutions, having risky companies in their portfolios can translate into negative returns on investments, defaults on loans or losses due to stranded assets.


Read the full article at: www.greenbiz.com

About the Author

EcoVadis EN

EcoVadis is a purpose-driven company dedicated to embedding sustainability intelligence into every business decision worldwide. We offer a full range of solutions including IQ-Plus Risk & Compliance Management, EcoVadis Ratings, and Carbon Action Module for Scope 3 Decarbonization. Key features like 360/Live News Monitoring, Academy E-learning and Corrective action plans help companies comply with ESG regulations, reduce GHG emissions, and improve the sustainability performance of their business and value chain across 220 industries in 180 countries.

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