Our scenario analysis of different climate costs reveals their are high levels of value at risk generated by Scope 3 deforestation emissions for U.S. imports commodities like palm oil, rubber and beef goods within their portfolios. This analysis presents a clear case for investors to proactively manage Scope 3 supply chain deforestation emissions risks associated with these commodities.

Ahead of the U.S. Securities and Exchange Commissions’ final climate-related financial disclosure rule it is critical to understand the scale of climate-related financial risk in Scope 3 emissions. A sample of our key findings from the report listed below identifies the materiality and potential scale of climate-related financial risks investors face from Scope 3 deforestation emissions.

Select Key Findings

1. The total value at risk for imported forest-risk commodity deforestation emissions ranges from USD 7.28 billion to USD 114.98 billion.
2. Gross profits for the commodities assessed could decline by USD 366 million to USD 6.9 billion.
3. Retail prices of imported beef could increase by 700% if climate costs of emissions from deforestation were factored into pricing.
4. Scope 3 emissions from deforestation for the production of commodities imported to the U.S. totaled 21.24 mtCO₂ in 2019, greater than the 2020 emissions of countries like the Congo, Nicaragua, and Panama.