Standardising Procedures for Environmental & Social Impacts to Stimulate Sustainable Land-Use Finance - Brief

This brief outlines how financial institutions can standardise environmental and social procedures to stimulate sustainable land-use finance. As agricultural expansion drives global deforestation, redirecting private capital toward sustainable practices is critical to meeting international climate goals. The document evaluates methods for managing environmental and social risks, such as utilizing International Finance Corporation standards and implementing strategies like jurisdictional investing and yield intensity enhancements to mitigate off-site leakage. Furthermore, it addresses the complexities of demonstrating impact through key performance indicators, noting that while forest extent is straightforward to monitor via remote sensing, biodiversity and social metrics remain challenging to standardise.