Blind Spots on the Balance Sheet: Uncovering Financial Implications of Deforestation
Risks from deforestation are larger than disclosures reveal at their surface. This report uncovers the value that’s at stake.
Deforestation poses growing financial and systemic risk. Direct and indirect consequences are disrupting supply chains, driving climate instability, and eroding the natural capital that underpins the global economy. Data from CDP reveals that companies are underreporting the financial risks to their businesses from deforestation, leaving a US$279 billion blind spot in global markets.
Drawing on corporate and financial institution disclosures, this report uncovers critical gaps in transparency and estimates the forest-related risks left unquantified. It calls for stronger dependency, impact, risk and opportunity (DIRO) assessments to support the transition to deforestation and conversion-free supply chains. This report also offers valuable insights to help investors, banks, insurers and regulators understand and address the true value at risk from nature loss.