资源环境科技发展态势分析平台

Eliminating risk and driving change

Financial institutions are in a unique position to reverse nature loss and help restore natural systems. And in its new report, WWF offers detailed step-by-step guidance on eliminating risks.

Step 1 - Understand material risks: Before being able to take action effectively, a financial institution must develop a clear understanding of its risk profile. This involves first understanding which regions and sectors carry the highest risk, and then mapping current clients and investees against this set of regions and sectors to identify which have probable exposure to deforestation and conversion risks.

Step 2 - Develop a deforestation and conversion free policy: Once a financial institution understands its risk exposure, the next step is to develop a policy that effectively targets these risks, ensuring sufficient breadth, including a credible target and setting clear expectations for clients and investees.

Step 3 - Conduct due diligence and monitor progress: Incorporate deforestation, conversion and associated human rights factors into ongoing risk management and other decision-making processes, assessing both existing and potential clients on their deforestation and conversion risk profile and mitigation efforts.

Step 4 - Engage clients and investees: Active, early engagement is essential to support clients and investees in their journey to align their activities with the terms of the financial institution’s deforestation and conversion free policy.

Step 5 - Report transparently: Regular, transparent reporting ensures recognition for the progress being made and generates pressure on other financial institutions to eliminate deforestation and conversion from their portfolios.