The initiative for sustainable forests was run in collaboration with Ceres. It helped investors to understand how deforestation within cattle and soybean supply chains represents a material risk to investee companies.
The initiative is coordinating collaborative investor engagement with companies that have either a direct or indirect exposure to commodity-driven deforestation in Latin America, whilst also addressing other ESG issues related to soft commodity production, such as poor working conditions, land rights and impact on indigenous peoples.
It is made up of over 40 investors with approximately US$ 8 trillion in assets under management. These investors are engaging with over 40 companies across the supply chain of these commodities.
Why investors should care
While cattle and soybean production have made significant contributions to economic development and the livelihoods of farmers in many countries across Latin America, there is now a growing awareness of the environmental and social issues associated with producing these commodities.
Commercial agriculture accounts for approximately 70% of tropical deforestation in Latin America, with cattle and soybean production being the largest drivers of this land use change, and demand for each is growing. Deforestation represents a significant climate risk to investors, accounting for approximately 10-15% of anthropogenic GHG emissions. Despite this, there are far fewer corporate commitments around deforestation in cattle and soybean supply chains than for other soft commodities.
Investor expectation statements
Many members of this group signed two statements highlighting what they expected of investee companies in terms of their disclosure and management of deforestation risks within cattle and soybean supply chains.
Aberdeen Standard Investments
APG Asset Management
BNP Paribas Asset Management
Boston Common Asset Management
Church Commissioners of England
EOS at Federated Hermes (formerly Hermes EOS)
Green Century Capital Management)
HSBC Global Asset Managemen
tImpax Asset Management
Legal & General Investment Management
NN Investment Partners
Pictet Asset Management
Rathbone Brothers Plc
Storebrand Asset Management
Sumitomo Mitsui Trust Asset Management
|Achmea Investment Management
Aegon Asset Management
Affirmative Investment Management
Australian Ethical Investment Ltd.
Bankhaus Schelhammer & Schattera AG
Caja Ingenieros Gestión SGIIC, SAU
California Public Employees’ Retirement System (CalPERS)
Core Capital Management, LLC
Domini Impact Investment
Handelsbanken Asset Management
Macquarie Investment Management Europe
Ostrum Asset Management
Resona Asset Management
SulAmérica Investimentos DTVM S.A
Engagement focus companies