The Investor Initiative for Sustainable Forests, run in collaboration with Ceres, is helping investors to understand how deforestation within cattle and soybean supply chains represents a material risk to companies.
It is coordinating collaborative investor engagement with companies that have either a direct or indirect exposure to commodity-driven deforestation, whilst also addressing other ESG issues related to soft commodity production, such as poor working conditions, land rights and impact on indigenous peoples.
More than 35 investors are already engaging with over 20 companies across the soy and cattle value chains.
Cattle and soybean production: What’s the issue?
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 growing. Despite this, there are far fewer corporate commitments around deforestation in cattle and soybean supply chains than for other soft commodities.
Investor expectation statements
These statements highlight what disclosure and management of deforestation risks investors expect of companies operating within the cattle and soybean value chain, and can be useful for investors when engaging with companies on these issues.
They have each been signed by about 50 investors representing approximately US$6.5 trillion in assets.
To find out more about this initiative and how your organisation could be involved, please contact us.