Responsible Finance

Proforest helps to develop environmental and social policies and safeguards to guide responsible finance in natural resources and agricultural commodities.

Investors can have a significant impact on the social and environmental performance of the companies that they finance. Organisations seeking investment to support their transition to more responsible production practices may be considered risky by investors. Investors also need the right policies and tools for screening potential clients and managing existing ones, while organisations seeking investment need tools to help them demonstrate their commitment and progress.

Beyond supporting individual investors and companies, Proforest also works to attract commercial and sustainable finance into production landscapes. Currently, sustainable landscape finance models are insufficient and primarily come from philanthropy, foreign aid and ESG budgets. To transition to sustainable landscapes, commercial finance and expertise is essential.

What do we do?

We work with the private sector, donors, governments and multilateral investors to develop environmental and social policies and safeguards for responsible finance.

At investment level

  • Evaluate current financial relationships and environmental and social risk assessment of new projects (Environmental and Social Due Diligence)
  • Develop policy and identify what environmental and social safeguards finance opportunities will deliver in practice
  • Develop and implement an action plan to bring investment portfolios in line with policy
  • Monitor or verify implementation of action plans by companies they are financing

At implementation level

  • Conduct due diligence of operations against international standards to meet finance institutions’ requirements for funding
  • Devise training and capacity-building programmes to ensure staff and partners understand and implement policy commitments and help clients meet environmental and social responsibility requirements
  • Develop and review criteria for social and environmental screening, and assess how they match the requirements of voluntary certification schemes

At landscape level: