From Orbit to Investment: Leveraging EO Data for Sustainable Finance

In an era where climate change and environmental degradation have reached critical levels, integrating sustainable practices into finance is no longer an option— it’s an imperative. Earth Observation (EO) data, obtained through satellites and other technologies, is emerging as a powerful tool to advance sustainable finance. Agtelligence leverages the invaluable insights provided by EO data so investors, and financial institutions can make informed decisions that drive positive environmental and social outcomes while securing financial returns.

Earth Observation Data: The Silent Game Changer

EO data offers a comprehensive view of the Earth’s systems, encompassing land, water, air, and human activities. Satellites with various sensors capture a wide range of information, such as land use, biodiversity, climate patterns, deforestation, and pollution levels, at varying temporal and spatial scales. The immense volume, variety and complexity of data collected can be processed and analysed to extract meaningful insights crucial for sustainable finance.

Enhanced Reporting capabilities and Due Diligence

Sustainable finance necessitates a thorough assessment of environmental and social risks associated with investments. Agtelligence provides a bird’s-eye view of potential risks and opportunities such as biodiversity and soil health monitoring and reporting. By integrating this data into mandatory reporting frameworks such as the Task Force for Climate-related Disclosures (TCFD) or voluntarily following best practice frameworks like the Task Force for nature related disclosures (TNFD), financial institutions can make well-informed decisions, minimising exposure to environmentally high- risk ventures and directing funds towards sustainable initiatives that align with global goals, such as the United Nations Sustainable Development Goals (SDGs).

Evaluating Environmental Impact and Performance

Investors and stakeholders increasingly demand transparency regarding the environmental footprint of their investments. EO data facilitates the measurement and evaluation of environmental performance across various sectors. Agtelligence generates insights into how investment activities impact nature and biogeochemical processes across time. With this information, investors can identify companies or projects prioritising environmental responsibility and allocate resources accordingly.

Fostering Sustainable Supply Chains

A significant aspect of sustainable finance involves promoting responsible and ethical supply chains. Understanding how complex supply chains affect nature is critical to complying with reporting and regulations, starting with how data can be employed to monitor supply chain activities and verify compliance with ESG standards. For instance, financial institutions can support companies committed to sustainable sourcing and production practices by tracking the sourcing of raw materials and evaluating the environmental impact of production processes.

Earth Observation data is ushering in a new era of sustainable finance. By incorporating the insights derived from EO data, financial institutions and investors can align their investments with sustainability objectives and positively impact the planet. As the need for sustainable finance grows, integrating metrics into decision-making will be paramount to achieving a balance between financial returns and environmental and social well-being. Fusing financial acumen with Agtelligence’s environmental expertise is essential for building a resilient and sustainable world for future generations.

Agtelligence recently took part in the Net Zero webinar, organised by West London Chambers, of which they are proud to be a part. Please note all webinars are available on the Chamber’s You Tube channel: https://www.youtube.com/channel/UC7UehhkBGqDfJyZZkFV0a3w/videos. Go check it out!