Forest IQ, launched on November 1, 2023, is an innovative data platform designed for financial institutions. It represents a collaborative effort between Global Canopy, Neural Alpha, the Stockholm Environment Institute, and The Zoological Society of London (ZSL). The platform is unique in its approach as it consolidates aligned, high-quality, and actionable data on how over 2,000 major companies are addressing their links to deforestation.
The primary goal of Forest IQ is to enable investors and financial institutions to better understand and manage their exposure to companies driving tropical deforestation. The platform covers key agricultural commodities that are the main drivers of deforestation, like cattle, soy, palm oil, timber, pulp and paper, coffee, and cocoa, as well as rubber, coal and gold.
Forest IQ achieves this by bringing together data from various sources like Global Canopy’s Forest 500, Trase, ZSL’s SPOTT, FAO, and certification schemes such as RSPO. This data is then used to generate core metrics for each company regarding deforestation exposure, materiality, and policy commitments, alongside their implementation. These metrics allow investors to compare companies throughout the value chain using a standard set of indicators.
In addition to benchmarking, Forest IQ can support activities like engagement and stewardship, due diligence, policy development and implementation, and exclusion screening. This comprehensive approach is reflective of the growing recognition of the substantial business risks posed by deforestation, conversion of natural ecosystems, and associated human rights issues. The platform's launch is timely, given the increasing regulatory focus on deforestation in major importer markets like the EU, UK, and USA.
Storebrand Asset Management contributed actively to Forest IQ's development through participation in a working group of 10 financial institutions, aiming to ensure that the platform meets the needs and processes of the finance sector. Going forward, Storebrand will use Forest IQ to improve our portfolio screening for deforestation risk.