Commitment on Eliminating Agricultural Commodity-Driven Deforestation and Increasing Investments in NbS
Tackling forest deforestation related to forest-risk agricultural commodities represents a key opportunity and imperative for the financial sector toward meeting net zero commitments through engaging with key investees and clients to halt deforestation across soft commodity supply chains, while financing and investing in nature-based solutions. Finance Sector Deforestation Action (FSDA) is a results-driven collaborative of financial institutions that unites signatory organisations around a shared engagement approach to tackling deforestation, creating essential convergence across other climate and nature-related initiatives.
Over 35 financial institutions with more than (US) $8.9 trillion in assets under management are committed to work on eliminating agricultural commodity-driven deforestation risks in their investment and lending portfolios by 2025. To read the commitment letter, please click here.
This investor-led initiative, Financial Sector Deforestation Action, is supported by a collaborative effort from leading organizations and individuals at the intersection of finance and conservation (Nature4Climate Secretariat, Conservation International, Global Canopy, Global Optimism, High-Level Climate Champions team, WEF Tropical Forest Alliance).
In response to the commitments that are made, the partners in this initiative, with support from many experts and partners, have published a Roadmap to eliminate commodity-driven deforestation.
The Roadmap provides a time-bound pathway and set of actions for financial institutions to achieve investment and lending portfolios with zero commodity-driven deforestation and related human rights abuses by 2025. It includes all agricultural commodities and is aligned with the level of ambition required to meet the Paris agreement and halt and reverse nature loss by 2030. It brings together the best available data and guidance on addressing deforestation and human rights abuses, going into much more detail than the commitment letter is able to, to outline to financial institutions the best practice for how they can map risk, set policies, identify and engage with non-compliant portfolio constituents, and look to increase exposure to nature- and people-positive activities.
Click here to read the Roadmap.
To achieve net zero emissions and keep 1.5°C within reach, financial institutions need to address both nature-related risk exposures and Nature-based investment opportunities.
The NBS pilot investment platform is focused on Nature-based Solutions (NbS) including Regenerative and Sustainable Agriculture, Forests and Land Use. It is a nascent platform that is intended to begin to fill a void in this crucial area, demystify the landscape of NbS investment opportunities, and evolve over time as those opportunities expand. It is not a platform for investment advice.
Finance for Biodiversity Foundation/Finance and Deforestation Advisory Group Webinar: in collaboration with Finance for Biodiversity
Nature Positive for a Net Zero Future: London Climate Action Week
Nature Positive for a Net Zero Future: Climate Week New York
Financing Nature Podcast: Financing Nature’s COP27 Special Series
$8.9 trillion Assets under Management
The signatory financial institutions commit to use best efforts to tackle commodity-driven deforestation impacts in their investment and lending portfolios by 2025. The commitment is focused on addressing agricultural commodities that are responsible for the lion’s share of deforestation impacts: beef, soy, palm oil, pulp & paper. Their stated intention is to reduce deforestation-related risks while supporting the transition to a sustainable agricultural sector.
The signatory organisations will individually create organisational plans, milestones, and incentives to meet the proposed timelines, aligned with a Paris Agreement-compliant 1.5°C pathway.
ACTIAM; AP2; Australian Ethical Investment; Aviva plc; AXA Group; Boston Common Asset Management; Church Commissioners for England; Church of England Pensions Board; Comgest; CPEG; Domini Impact Investments LLC; East Capital Group; Fidelity International; GAM Investments; Generation IM; Grupo Bancolombia; Impax Asset Management PLC; International Business of Federated Hermes; JGP Asset Management; Legal and General Investment Management (LGIM); LGPS Central Limited; Lombard Odier; London CIV; Menhaden PLC; NEI Investments; NN Investment Partners; Robeco; Schroders; SCOR SE; Skandia; SouthBridge Group; Sparebank 1 Forsikring; Storebrand Asset Management; Sumitomo Mitsui Trust Asset Management; TCI Fund Management Ltd; The Local Authority Pension Fund Forum.