Global investors call for end to Brazilian deforestation

31st July 2018


Web sunset istock 881903436

Related Topics

Related tags

  • Ecosystems ,
  • Pollution & Waste Management ,
  • Prevention & Control

Author

Duncan Cox

Investors managing more than $2.8trn (£2.1trn) in assets have today thrown their weight behind an initiative seeking to halt deforestation in Brazil’s Cerrado region.

Legal and General Investment Management (LGIM) are among the investors supporting the call for action, joining McDonalds, Tesco, Walmart and Unilever in their bid to end forest loss driven by commodity production in Cerrado.

The vast tropical savanna is thought to be one of the most threatened ecosystems on the planet, and has already seen half of its original forests and native vegetation cleared for agricultural expansion.

It is estimated that continued deforestation in the region could release approximately 13.7 billion tones of CO2 into the atmosphere, jeopardising Brazil’s international commitments for green house gas emissions.

“Investors are realising the importance of protecting ecosystems like Cerrado, as their beneficiaries face a world too hot to retire into,” said Jeremy Coller, founder of the FAIRR Initiative, which coordinated the investor support.

“Globally, deforestation puts almost a trillion dollars of listed equity turnover at risk, and that makes the rapid pace of native vegetation loss in Cerrado a material concern for investors.”

More than 70 large corporates have given the support to the ‘Cerrado Manifesto’, which was launched last year and calls for immediate action by soy and meat companies to prevent further forest loss.

The new investor statement is timed to coincide with the drafting of an agreement between producers, industry, consumer organisations and civil society to eradicate deforestation in Cerrado.

Dutch asset managers APG and Robeco, and US investor Green Century Capital Management, have joined LGIM in lending their support to the initiative.

“We expect the companies which we invest in to disclose both their exposure to forest risk commodities, as well as how these are managed,” LGIM head of sustainability and responsible investment strategy, Meryam Omi, said.

“Given the significant role deforestation plays in increasing greenhouse gas emissions, it is essential to increase the importance of this issue on board agendas.

“Ensuring responsible sourcing and land use for commodities such as soy and cattle is a key component of risk mitigation.”

Image credit: iStock

Subscribe

Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.


Transform articles

Renewables account for almost half of Britain’s power generation

Solar power generation hit a new high in the last quarter as renewables accounted for almost half of Britain’s energy production, according to a report from Montel Analytics.

18th July 2024

Read more

Ahead of the UK general election next month, IEMA has analysed the Labour, Conservative, Liberal Democrat, and Green Party manifestos in relation to the sustainability agenda.

19th June 2024

Read more

Sarah Spencer on the clear case for stronger partnerships between farmers and renewable energy developers

6th June 2024

Read more

A system-level review is needed to deliver a large-scale programme of retrofit for existing buildings. Failure to do so will risk missing net-zero targets, argues Amanda Williams

31st May 2024

Read more

Chris Seekings reports from a webinar helping sustainability professionals to use standards effectively

31st May 2024

Read more

Although many organisations focus on scope 1 and 2 emissions, it is vital to factor in scope 3 emissions and use their footprint to drive business change

31st May 2024

Read more

Joe Nisbet explores the challenges and opportunities of delivering marine net gain through offshore renewables

31st May 2024

Read more

IEMA submits response to the Future Homes Standard consultation

31st May 2024

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close