Tropical forests are being cleared every day to make way for globally-traded commodities, and this trade is powered by billions of dollars in lending and investment.
However, these forests contain the natural capital that we depend on for our future prosperity. To ensure sustainable global economies, we must understand and account for the value of the goods and services provided by nature. Loans, investments and portfolios must be evaluated for their impact on natural capital, and key decision makers must be empowered to act on environmental risk in the finance sector.
Global Canopy’s Finance Sector Programme works to engage and support leading financial institutions (FIs).
Global Canopy jointly manages the Natural Capital Finance Alliance with the United Nations Environment Programme Finance Initiative (UNEP-FI). Our aim is to increase awareness among financial institutions of the natural capital risks they are exposed to through loans and investments, and to provide the tools to assess and negate such risks, as well as to identify opportunities for more sustainable investment.
In partnership with the Stockholm Environment Institute and Neural Alpha, we are launching an initiative in summer 2020 to bring transparency to the hundreds of billions of dollars that directly and indirectly finance tropical deforestation each year. Trase Finance will enable financial institutions to improve the sustainability of their portfolios. And it will allow civil society and governments to monitor progress and better hold to account those failing to act.