Investors collectively representing $15 trillion in assets under management have announced their support for the Spring initiative, a programme launched by The Principles for Responsible Investment (PRI) that is focused on tackling the material financial risks of biodiversity loss by 2030.
Of these investors, some 66 will be actively involved in engagement with 40 focus companies, on how they can use their influence to tackle deforestation risks.
The objective is to improve the companies’ management of nature impacts and risks, enhance their supply chain practices, and foster political engagement to mitigate these risks.
‘Nature risk is climate risk’
“Whichever way you look at it, nature risk is climate risk,” commented David Atkin, PRI chief executive. “What we’re seeing today from investors is a recognition of the importance of nature when managing material investment risks, including deforestation and biodiversity loss, when aligned with their individual fiduciary duty.
“Spring provides an opportunity to our signatories to address the financially material risks stemming from global nature loss. In doing so, we’re also supporting the investment community’s contribution to and alignment with the objectives and targets of the Global Biodiversity Framework agreed by more than 190 governments.”
The initiative focuses on regions with critical natural ecosystems at risk of forest loss and land degradation, engaging with companies from emerging markets, including Brazil, and those sourcing forest-risk commodities from these areas.
Companies across various sectors, such as food and agriculture, mineral mining, automotive, chemicals, and banking, will be engaged as part of the Spring initiative. Among these are firms such as L’Oreal S.A. (lead investors: CCLA Investment Management, Dorval Asset Management), Toyota (lead investor: Nomura Asset Management), Bayer (lead investors: Erste Asset Management GmbH, Osmosis Investment Management), and Brasil Foods SA (lead investor: JGP).
In the coming months, PRI will organise smaller engagement groups for each of the 40 companies to develop targeted and constructive engagement strategies. These companies have been identified due to their direct or indirect exposure to forest loss and land degradation, or their significant role in influencing policymakers.
‘Robust corporate practices’
“The investor community can leverage its influence to promote robust corporate practices that effectively combat forest loss and land degradation,” added Lucie Smith, Soft Commodities Forum senior manager, WBCSD.
“By facilitating direct engagement between investors and corporations, the Spring initiative has the potential to foster the development and implementation of nature-positive, climate-positive and equitable value chains. WBCSD supports the initiative’s approach and ambition.”
