Chain Reaction Research – Translating sustainability into financial risks

Date
2013 to present
Target audience
Financial actors, Companies
Commodities
palm oil, soy, cattle
Consortium partners
Green Century, Climate Advisers and Profundo

Actionable information towards deforestation-free finance

Chain Reaction Research supports financial institutions in using their leverage to advance deforestation-free commodity production and trade. With deforestation-focused financial risk analysis, we speak the language of investors and bridge data gaps on companies’ performance against their sustainability commitments and stakeholder expectations.

Challenge

At COP26, financial institutions committed to eliminating commodity-driven deforestation by 2025. Despite increasing consensus to take positive climate action, funding continues to flow to unsustainable companies. Lack of actionable, ground-level data on companies’ sustainability performance impede investor decision-making and engagement with companies, resulting in persistent deforestation risk exposure and forest clearing.

Approach

Chain Reaction Research (CRR) was founded to provide financial actors with independent and actionable real-time data on companies’ sustainability performance, allowing them to strengthen their deforestation policies, conduct effective due diligence and ESG screening, engage companies with specific sustainability asks, file shareholder resolutions, and collaborate with other stakeholders to influence portfolio companies.

375
reports and articles on companies’ sustainability and financial risks and issues relevant to commodity-driven deforestation
7,630
financiers reached and engaged
US$4 trillion
contributed to 18 financial institutions with over USD 4 trillion AUM to engage companies on deforestation and social risks
6 big players
provided data that backed shareholder resolutions to strength zero-deforestation policies at Unilever, ADM, Bunge, Proctor & Gamble, Tyson Foods, and Bloomin’ Brands (via CRR partner Green Century)