Latest News

Investors with $3 trillion of assets call on countries to end deforestation

Investors with $3 trillion of assets call on countries to end deforestation

Investors from around the world, who manage assets worth over $3 trillion, called on governments to reverse and stop deforestation by 2030. The statement was signed before a U.N. Climate Conference in Brazil.

Belem Investor Statement for Rainforests is now open to sign up until November 1 and has attracted around 30 institutional investors, including Pictet Group, a Swiss private bank, as well as DNB Asset Management in the Nordic countries.

Last week, a report found that the world has fallen far short of its goal to stop deforestation. In 2024, the area of England's forest will have been reduced by 8.1 million hectares (or 20 million acres). This is largely due to agricultural expansion and forestfires.

The statement stated that "as investors, we have become increasingly concerned by the financial risks tropical deforestation poses to our portfolios."

Jan Erik Saugestad is the CEO of Storebrand Asset Management, a Nordic firm.

"Deforestation undermines natural systems on which global markets depend - from food and water safety to climate regulation."

The European Union delayed its anti-deforestation legislation by one year earlier this year. This was due to opposition from the industry and trading partners, such as Brazil and Indonesia, who said that complying with these rules would be expensive and harm their exports into Europe.

Ingrid Tungen is the head of Rainforest Foundation Norway's deforestation free markets. She said that Donald Trump, a climate sceptic, has also hampered action by rolling back support to global environmental efforts. She said that Trump had made it harder for managers and investors to consider climate change and biodiversity in a volatile environment.

All the investors we have spoken to believe that there is a great risk if we do not take climate change and diversification into account in the long term. This will not only harm the markets and their profits, but also their morals. (Reporting and editing by Nia William; Sharon Kimathi)

(source: Reuters)