Since 2013, Chain Reaction Research (CRR) has provided sustainability risk analysis for financial analysts, credit analysts, commercial bankers, institutional investors, corporations, and other stakeholders. Through our work, we have demonstrated that deforestation is a material financial risk in soft commodity markets, including palm oil, soy, cattle, coffee, cacao, timber pulp and paper, and other products.
Looking forward, CRR is currently seeking to leverage our insights with new partnerships, collaborations, and funding to remain at the forefront of the conversation on the intersection of climate change, forests, finance, and other sectors. For any group interested in working with us, please contact the members of the CRR team listed at the end of this Chain.
Our work, which combines actionable intelligence on influential companies and financial risk analysis of major financiers, has been effective in contributing to a key factor in accelerating forest protection: the establishment and implementation of corporate zero-deforestation policies. NGO campaigns have helped secure some of these policies, but investors and banks have increasingly emerged as influential players in this space. Banks and investors help determine which companies in deforestation-risk commodity supply chains can access capital. As more banks and investors acknowledge the important role they have to play in the global transformation towards a sustainable future, they are embracing ESG criteria and assessing climate risks in their portfolios. We have helped them understand that protecting forests is crucial for their ESG integration, solving the global climate crisis, and mitigating risks to their bottom line.
The work published under the CRR brand has gained over 3,500 devoted readers spanning influential corporate executives, financial actors, academics, and NGOs. Our most widely read reports have covered a broad range of subjects, exemplifying the breadth and depth of our analysis and impact. Some of our highlights include reports on deforestation risks for Brazilian retailers, top deforesters in Southeast Asia, NDPE commitments of palm oil refiners, the role of shadow companies in the palm oil market, why deforestation is a climate risk, the 2019 fires in Brazil and Indonesia, and key FMCGs, commodity traders, and meatpackers. Our analysis and experts have been cited in various government, NGO, financial, and academic publications, along with many media outlets such as the Financial Times, The Guardian, Mongabay, Reuters, Exame, Capital Reset, Eco-Business, and many more.
When CRR was launched, most of the attention surrounding climate change focused on fossil fuels. But now, the conversation has changed significantly, with a growing awareness that preserving forests is just as important to meeting the goals of the Paris Agreement as curbing the use of fossil fuels. Deforestation and land-use change currently account for almost a quarter of annual greenhouse gas emissions. Besides reducing greenhouse emissions, protecting forests can also conserve habitats for endangered species, protect water and reservoirs, increase air quality that is compromised by large-scale burning of forests, and reduce the chance of zoonotic diseases infecting humans.
As we move forward, we are excited to continue to provide valuable, in-depth analysis for investors and financial institutions in soft commodities. The coming years will be crucial in tackling the climate crisis as governments and companies look to increase their ambition to keep temperatures from rising beyond 1.5 degrees. Protecting forests will remain a critical part of the response to curbing climate change.
Geonna Corneby, Corneby@aidenvironment.org
Barbara Kuepper, Barbara@profundo.nl
Matt Piotrowski, Piotrowski@climateadvisers.org