Risk assessment from space: Integrating satellite-derived insights for ESG financial decisions

A.B. Morales; Márcio Poletti Laurini; A. Vrieling

doi:10.1016/j.frl.2025.106951

Risk assessment from space: Integrating satellite-derived insights for ESG financial decisions

A.B. Morales^*
, Márcio Poletti Laurini
, A. Vrieling

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

3 Citations (Scopus)

103 Downloads (Pure)

Abstract

This paper explores how satellite data can be used in sustainable investment analyses by offering a granular approach that differs from conventional environmental, social and governance (ESG) scores. The paper showcases the spatial relationship between abattoir locations and deforestation in Brazil, using asset-level and land coverage data to assess the environmental risks tied to beef traders’ sourcing practices. This approach provides a tool for investors concerned with climate risks who seek alternatives to existing ESG metrics. The findings highlight the benefits of integrating satellite data to comprehensively address material risks associated with some industries.

Original language	English
Article number	106951
Number of pages	10
Journal	Finance Research Letters
Volume	76
Early online date	21 Feb 2025
DOIs	https://doi.org/10.1016/j.frl.2025.106951
Publication status	Published - Apr 2025

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 9 Industry, Innovation, and Infrastructure
SDG 13 Climate Action
SDG 17 Partnerships for the Goals

Keywords

UT-Hybrid-D
ITC-ISI-JOURNAL-ARTICLE
ITC-HYBRID

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10.1016/j.frl.2025.106951Licence: CC BY

ArticleFinal published version, 3.02 MBLicence: CC BY

Cite this

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title = "Risk assessment from space: Integrating satellite-derived insights for ESG financial decisions",

abstract = "This paper explores how satellite data can be used in sustainable investment analyses by offering a granular approach that differs from conventional environmental, social and governance (ESG) scores. The paper showcases the spatial relationship between abattoir locations and deforestation in Brazil, using asset-level and land coverage data to assess the environmental risks tied to beef traders{\textquoteright} sourcing practices. This approach provides a tool for investors concerned with climate risks who seek alternatives to existing ESG metrics. The findings highlight the benefits of integrating satellite data to comprehensively address material risks associated with some industries.",

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author = "A.B. Morales and Laurini, \{M{\'a}rcio Poletti\} and A. Vrieling",

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doi = "10.1016/j.frl.2025.106951",

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AU - Morales, A.B.

AU - Laurini, Márcio Poletti

AU - Vrieling, A.

PY - 2025/4

Y1 - 2025/4

N2 - This paper explores how satellite data can be used in sustainable investment analyses by offering a granular approach that differs from conventional environmental, social and governance (ESG) scores. The paper showcases the spatial relationship between abattoir locations and deforestation in Brazil, using asset-level and land coverage data to assess the environmental risks tied to beef traders’ sourcing practices. This approach provides a tool for investors concerned with climate risks who seek alternatives to existing ESG metrics. The findings highlight the benefits of integrating satellite data to comprehensively address material risks associated with some industries.

AB - This paper explores how satellite data can be used in sustainable investment analyses by offering a granular approach that differs from conventional environmental, social and governance (ESG) scores. The paper showcases the spatial relationship between abattoir locations and deforestation in Brazil, using asset-level and land coverage data to assess the environmental risks tied to beef traders’ sourcing practices. This approach provides a tool for investors concerned with climate risks who seek alternatives to existing ESG metrics. The findings highlight the benefits of integrating satellite data to comprehensively address material risks associated with some industries.

KW - UT-Hybrid-D

KW - ITC-ISI-JOURNAL-ARTICLE

KW - ITC-HYBRID

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DO - 10.1016/j.frl.2025.106951

M3 - Article

SN - 1544-6123

VL - 76

JO - Finance Research Letters

JF - Finance Research Letters

M1 - 106951

ER -

Risk assessment from space: Integrating satellite-derived insights for ESG financial decisions

Abstract

UN SDGs

Keywords

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