Deforestation Disclosure Guide for Financial Institutions: Towards integrated nature and climate-related financial disclosure

This guide from WBCSD can help you understand how deforestation creates risk for financial institutions and how to meet growing expectations for disclosure on deforestation. Written for those working on sustainability at banks, insurers, and asset management firms, the guide begins by providing a background on the interconnection between nature and climate risks; deforestation risk in portfolio companies; and sustainability-related disclosure frameworks. Next, it explores two deforestation-specific disclosure frameworks: the CDP Financial Services questionnaire and the Deforestation-free Finance Roadmap. It then examines how deforestation-risk can be integrated into IFRS S2, TNFD, and select US and European disclosure regulations. It concludes by outlining key challenges and four steps that financial institutions can take immediately to assess and reduce deforestation risks in their portfolios.