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Chain Reaction Research

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Sustainability and financial risk analyses of companies active in tropical commodity value chains.

 

Chain Reaction Research (CRR), a consortium of Aidenvironment, Profundo and Climate Advisers, conducts sustainability and financial risk analysis of companies active in tropical commodity value chains. Since 2013, it publicized objective and dispassionate analyses of financial risks caused by deforestation. By informing investors about the link between supply chain deforestation and financial performance, CRR’s analysis mobilizes the financial sector to include deforestation in risk models and engage companies on commodity-driven deforestation.

CRR makes use of a proprietary framework that includes extensive deforestation and supply chain monitoring systems, as well as a model to identify and quantify the business and financial risks associated with it. CRR’s reports are published through various communication channels (website, mailing list, the Bloomberg terminal and other syndicate sources) to reach a financial audience.

Results

CRR’s work on the palm oil, soy and beef sectors has had demonstrable impacts. CRR has contributed to a growing group of progressive international investors and banks with strong Environmental Social and Governance (ESG) principles. They now recognize the risks associated with companies in commodity value chains and how these affect tropical forests. Collaborative investor engagement, based on CRR’s findings, has resulted multiple times in tangible changes in corporate practices around deforestation.

 

For more information, please contact: Tim Steinweg