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Trase Finance

A Global Canopy, Stockholm Environment Institute (SEI) and Neural Alpha project
Image: da-kuk/iStock.com
The Challenge

Since we launched Trase back in 2016, it has brought a new level of transparency to the trade in commodities driving tropical deforestation. But the vast flows of capital financing this trade each year have remained opaque. 

This lack of information, data and mapping of company ownership and financing has been a major barrier to action.

Our Approach

Drawing on more than 30 disparate data sources that combine Trase’s unique deforestation risk data with data on company ownership and legal structures, tax registrations, and a wide range of capital raising mechanisms, Trase Finance will enable financial institutions to understand and mitigate their exposure to deforestation in their portfolios. And it will allow civil society and governments to better hold to account those failing to act.

Because it builds upon the unique deforestation-risk data provided by Trase, Trase Finance is highly scalable across additional commodities and countries of production – meaning that in time it will cover the majority of trade in soft commodities linked to deforestation and associated environmental and social impacts. The tool is currently being used as part of an early adopter programme by banks, asset managers and civil society organisations, and is already helping to underpin independent initiatives working on transparency of the financing of deforestation-risk commodities.

Trase Finance will launch in summer 2020. Until then, you can preview this groundbreaking initiative here.