As part its work to deliver a low carbon future, Climate Advisers Trust is launching a major new initiative focussing on the forest, food and land sectors in Indonesia, Peru and Colombia, called Operation Sunlight.
U.S. Supreme Court Justice Louis Brandeis famously noted that “sunlight is the best disinfectant.” Orderly and efficient capital markets depend on sunlight—investors need to see and assess information that is material to investment decisions. When investors see risks, they generally respond in ways that manage those risks, and this leads to better corporate behavior and higher financial returns.
Today’s capital markets need a lot more sunlight about the global forest, food and land sector (the “land economy”), particularly when it comes to climate change. Climate risks in the land economy are likely massive and unprecedented, yet in many cases not obvious. How will the world reduce greenhouse gas emissions from the land sector while simultaneously feeding two billion more people and eliminating extreme poverty? Major changes in the land economy appear inevitable yet hard to identify, quantify and locate on a map, let alone tie to specific public companies. Additional knowledge and improved transparency about climate risks in the land sector would empower executives and investors to manage climate risks effectively. This in turn could help reduce climate emissions, clean up supply chains and yield better investment returns.
Our goal is to illuminate for investors the poorly understood but nonetheless material risks and opportunities from climate change in the land economy. We will do this by:
- Creating a new land, climate & financial risk brand and narrative analogous to what the Carbon Tracker Initiative has done in the fossil fuel sector.
- Educating investors through agenda-shaping reports, papers and company analyses that highlight stranded asset risks and natural climate solutions-related investment opportunities in the land sector.
- Empowering investors to manage material climate risks in the land sector by producing the world’s first online tool that allows anyone anywhere in the world to access in real time, and for free, the world’s best commercially available data on the individuals and entities driving deforestation globally.
For more information about this project, please see here.
To view this grant agreement, please see here.
This project is made possible by funding from Norad.