230 Investors with USD $16.2 trillion in AUM Call for Corporate Action on Deforestation, Signaling Support for the Amazon

Today, 230 institutional investors representing USD $16.2 trillion in assets under management are calling on companies to take urgent action in light of the devastating fires in the Amazon, fueled in part because of the alarming rate of deforestation in Brazil and Bolivia.

“Deforestation and loss of biodiversity are not only environmental problems. There are significant negative economic effects associated with these issues and they represent a risk that we as investors cannot ignore”, says Jan Erik Saugestad, CEO Storebrand Asset Management.

"There is an urgent need to focus more on effective management of agricultural supply chains and we will use our power as an active owner to put maximum pressure to change company behavior. Storebrand's ambition is to have an investment portfolio that does not contribute to deforestation by 2025, and we will not knowingly finance operations that are illegal, fail to protect high conservation value forests or violate the rights of workers and local people"

The statement calls on companies to tackle the financial material deforestation risks, including market and reputational risks, within their operations and global supply chains. It specifically asks companies to:

● publicly disclose and implement a commodity-specific no deforestation policy with quantifiable, time-bound commitments covering the entire supply chain and sourcing geographies.

● establish a transparent monitoring and verification system for supplier compliance with the company’s no deforestation policy.

● report annually on deforestation risk exposure and management, including progress towards the company’s no deforestation policy.

Among the signatories are some of the largest investment managers and asset owners from around the globe, representing more than 30 countries.

The statement is coordinated by the nonprofit organizations PRI and Ceres.

“In signing this statement, investors representing a significant portion of global capital are pledging their support for the Amazon region, which has been devastated by fires and deforestation,” said PRI CEO Fiona Reynolds. “In doing so, investors are recognizing the critical role they play to urgently accelerate action to help societies affected by this tragedy, and to prevent environmental disasters of this scale in the future.”

"Institutional investors increasingly recognize that deforestation creates material financial risks, including reputational and regulatory risks for companies, and that it exacerbates systemic risk across portfolios by contributing to climate change," said Ceres CEO and President Mindy Lubber. "Therefore, companies must demonstrate to investors that they can hold their global suppliers accountable for disclosing and eliminating these risks."

To the full press release