AFi launches Finance Tool for managing deforestation risk
20 maio 2026
New resource available to help financial institutions better manage deforestation and related risks in investment portfolios
Deforestation, conversion, and associated human rights abuses are pervasive challenges in agricultural and forestry supply chains. As such, the finance sector has a critical role to play in addressing these impacts, considering that in 2024 top financial institutions provided $8.9 trillion to the companies most exposed to deforestation.
For financial institutions, deforestation exposure can lead to a range of financial, legal, and reputational risks. Collectively, these material risks can threaten financial returns, lead to fines or other regulatory action, damage business relationships, and jeopardise a financial institution’s ability to meet climate and other sustainability goals.
To respond effectively to these risks, financial institutions need to understand where deforestation risk occurs within their portfolios and use this information. This helps them to prioritise targeted engagement with companies where action will have the greatest impact.
Introducing the AFi Finance Tool
Building on its role in guiding corporate action on responsible supply chains, the Accountability Framework initiative (AFi) has developed a new tool to support financial institutions. It can be used by banks, investors, pension funds, and others that provide capital to companies involved in the production or sourcing of agricultural and forestry commodities.
As part of the AFi’s overall approach to supporting financial institutions, the AFi Finance Tool helps them to evaluate the risk and performance of the companies in their investment and lending portfolios. It also explains where to find relevant data and provides guidance on the best route to effective engagement with investees and clients. This can help financial institutions focus on the most critical ways to address risks related to deforestation, conversion, and human rights abuses. The tool consists of two complementary resources:
- Criteria and Data References (Excel workbook): This resource identifies priority themes on which financial institutions should focus when assessing portfolio companies, and where to access credible data on these topics. It draws on established disclosure and assessment initiatives including CDP, GRI, Forest 500, Forest IQ. It also illustrates alignment with the expectations in the PRI Spring Company Assessment Framework. In addition, the workbook shows how each criterion aligns with the Accountability Framework Core Principles, grounding the Finance Tool in widely-recognised good practices for agri-food and forest products companies.
- Stewardship Guide (PDF): Organised around the same criteria in the workbook, this guide supports financial institutions in taking targeted action. It outlines a clear three-step approach (assess, clarify, act) to help identify key gaps and drive change. The guide provides practical direction on asking the right questions, prioritising requests to drive meaningful progress, and following up as part of ongoing stewardship processes with companies.
The tool was created by the AFi in collaboration with the Principles for Responsible Investment (PRI), and piloted by several PRI Spring Signatory Investors. It draws upon years of experience developing effective disclosure systems, data, and engagement by AFi Coalition members and partners such as CDP, Ceres, Global Canopy, and the Global Reporting Initiative (GRI).
Take action with the AFi Finance Tool today
“PRI sees the Accountability Framework as a credible roadmap that sets clear expectations for companies on deforestation, ecosystem conversion, and related human rights issues, said Tim Steinweig, Head of Stewardship – Nature, PRI. “For investors, resources like the AFi Finance Tool help identify financially material risks, better understand company practices, and support more effective stewardship through clearer, more focused questions.”
To get started on managing deforestation risks in your investment or lending portfolios, access the AFi Finance Tool today.
Join our upcoming webinar
We’re hosting a webinar on 27 May 2026 to introduce the AFi Finance Tool and outline how financial institutions can use it to manage deforestation risks in their portfolios. The session will feature speakers from Morningstar Sustainalytics and PRI.
