Financial Markets

We perform sustainability risk analysis to identify climate and sustainability risks

Providing Sustainable Risk Analysis for Financial Professionals

When companies involved in environmentally intensive commodities like palm oil enter and retain a position on the stock market, they provide information about their holdings, governance and – at least ostensibly – their risks.

But, too often, the financial analysts and potential investors looking at these companies are not covering the whole story. Often, the story about where and how these commodities are being sourced is missing key elements, such as whether developing the land bank listed by the company as an asset would mean violating the law or industry standards. Or whether it would significantly contribute to global climate change, destroy land of high conservation value or exploit local communities.

Taken together, it means that a company may have far more risk in its sourcing or its supply chain than is reported in its publicly available materials. That’s something financial analysts need to know.

Chain Reaction Research was created by Climate Advisers together with our partners AidEnvironment and Profundo to provide dispassionate, credible analysis supported by thorough technical and fundamental analysis of commodity supply chains. CRR directly reaches thousands of financiers and investment stakeholders every week, and tens of thousands more through syndication among financial media. We also do more extensive reports, looking deeply into individual companies and broadly at major sectoral trends. And through it all, we’ve shaped a growing global understanding that sustainability risks drives financial risks for soft commodities. Click here to learn more >