Methodology

Chain Reaction Research (CRR) strives to provide objective insight and unbiased analysis on market trends and company and investor risk for its readers. CRR determines content based on what is considered to be of broad interest to readers and whether it can provide candid, high-level debate.

CRR selects topics through collaboration among the three partners, based on agreed criteria (see below for specific criteria). Broadly speaking, CRR chooses content based on the latest capital market trends, recent news about company risks connected to deforestation-related commodities such as palm oil, soy, cattle, and other products, and collective judgment on what information and analysis the investor community needs to make sound decisions. See the graphic below for our Theory of Change.

CRR Methodology to develop reports and outreach

Step 1: Select target companies

Step 2: Sustainability Risk Assessment (SRA) → risks of extraction for the environment and local people

Step 3: Business risk assessment (BRA) → from sustainability risks to risks for the companies

Step 4: Due hearing with companies

Step 5: Financial Risk Assessment (FRA) → from business risks to risks for the financial investors

Step 6: Communication and outreach to companies and the financial sector

Step 7: Continuous engagement and education activities → Follow-up monitoring of targeted companies on identified sustainability and business risks

Evidence of a company or its suppliers contributing to deforestation:

Satellite images provide evidence of deforestation
Deforestation can be directly linked to a company that produces, sources, refines or trades deforestation-related commodities
The company faces material financial risks from deforestation

Potential for influencing the company through its investors: