PACHAMA INSIGHTS

Natural risk

An assessment of the risk from natural disturbances within the project area relative to the broader region.

Why it matters
Understanding natural risks to reforestation projects is key to long-term project success. Wildfires, droughts, pests, and extreme weather can damage trees and cause financial losses, either suddenly (e.g. wildfires) or gradually (e.g. droughts), so it’s important to assess local conditions to regional patterns over time.
Pachama’s evaluation approach
We use global or regional data to identify key risk factors such as drought, wildfire, and extreme weather. This data helps compare local conditions near the project to broader regional risks, guiding the identification of potential risks. We then assess whether the project has sufficiently accounted for these risks.
How you can use insights
- Evaluate project natural risk accounting before purchasing credits or making an investment.
- Check natural risk accounting to prepare for validation.