Iceberg Data Lab’s new tool helps investors track the deforestation impact of companies in their portfolios, allowing them to make sustainable investment decisions and support the fight against deforestation.
Iceberg Data Lab (IDL) has launched a new tool designed to help investors assess the deforestation impact of their portfolios. The tool tracks the deforestation associated with companies involved in the production of key commodities such as beef, cocoa, timber, coffee, soy, palm oil, and rubber. It covers 3,500 listed companies in 22 deforestation-prone countries and will expand to include 8,000 companies by early January.
Matthieu Maurin, CEO of Iceberg Data Lab, highlighted that the tool enables asset managers to make informed decisions by either excluding deforestation-heavy companies or engaging them as shareholders to improve practices. This allows investors to redirect funds towards companies with better sustainability practices and contribute to the fight against deforestation.
The tool evaluates deforestation by examining raw material production in each country, taking into account local environmental conditions. For example, the tool considers the agricultural practices used in coffee production and their different environmental impacts across regions. The contribution of each company to deforestation is calculated, factoring in the certifications the company holds. IDL rigorously assesses the reliability of these certifications, applying discounts to companies with less reliable certification standards.
By comparing companies’ deforestation performance against industry averages, the tool provides actionable insights for investors looking to reduce the environmental footprint of their portfolios. The launch follows IDL's successful $10 million Series A funding round, which will support the tool’s expansion and development.
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