Deforestation costs linked to US imports

Deforestation emissions from raw materials imported into the United States present material financial risks for investors and concerns for importing companies. Scope 3 emissions from deforestation for the production of commodities imported to the U.S. totaled 21.24 mtCO2 in 2019. The total value at risk for imported forest-risk commodity deforestation emissions ranges from USD 7.28 billion to USD 114.98 billion. Maintaining a business-as-usual approach to imported forest risk commodities (FRCs) leaves investors in the dark regarding future financial risk, potentially exposing their broader portfolios to harsher impacts from climate change.