Environmental Finance: Iceberg Data Lab (IDL) has introduced a tool that assesses deforestation risk for 3,500 listed companies involved in producing raw materials linked to deforestation, such as beef, cocoa, timber, coffee, soy, palm oil, and rubber.
The tool combines country-level and ecosystem-level data to evaluate a company’s contribution to deforestation, considering certifications used by companies while assessing their reliability and traceability. If a certificate doesn’t address deforestation prevention, companies are marked down for residual risk.
IDL’s tool helps asset managers assess deforestation impacts within portfolios, guiding investment decisions to favor sustainable companies. IDL plans to expand the tool to cover 8,000 listed companies in the coming year.
