Trase Finance uses supply chain modelling to allocate annual commodity-specific deforestation risk in hectares to investors based on their total equity ownership in commodity traders exposed to deforestation via investing subsidiaries and fund shareholdings. For the first time this allows for a quantifiable and robust way to rank asset managers according to their exposure to deforestation risk.

Analysing financial and sustainability disclosures is key to effective ESG Integration however with ever changing standards, guidance, formats and exponentially growing volumes this is proving a challenge for ESG teams with limited resources. Enter Machine Learning, Large Language Models (LLMs) and Neural Alpha’s Disclosure Assistant.

Trase Finance – a collaboration between fintech company Neural Alpha, international non-profit research and policy organisation the Stockholm Environment Institute (SEI) and NGO Global Canopy – seeks to identify second-order environmental impacts in supply chains, enabling transparency and shedding light on the hidden risks and opportunities that can materially influence financial and non-financial performance.