A coalition of investors representing assets of €1.8 trillion launched today an initiative calling on companies to take action to end deforestation in their supply chains, and to enhance supply chain traceability.
According to the group, which includes investment firms ACTIAM, Achmea Investment Management, Aegon Nederland N.V., a.s.r. Asset Management, Aviva Investors, Fidelity International, Nomura Asset Management, Robeco and Zwitserleven, the initiative is designed to provide investors with more transparency in the supply chains of companies they invest in and reduce deforestation risks in their portfolios.
The investors stated that they are aiming to reduce deforestation across their investments, explaining that the loss of biodiversity due to deforestation is one of the greatest risks to society and the economy. Traceability and transparency of companies’ supply chains, according to the group, are crucial to investors in order to identify and reduce deforestation risks in their portfolios.
As part of the new initiative, the investors will reach out to companies that provide insufficient information about their supplier lists as well as companies linked to deforestation cases in the palm oil sector in Malaysia, with cases identified through satellite imagery and artificial intelligence provided by satellite geodata analytics provider Satelligence. The investors will also utilize satellite imagery and data analysis to assess the progress made by the engaged companies, with companies expected to meet the investors’ requests in two to three years.
Dennis van der Putten, Director of Sustainability at ACTIAM, said:
“As investors, we have a fiduciary duty to lead the transition to a more sustainable society, where financial, environmental and social returns go hand in hand. This engagement initiative is part of our growing commitment to biodiversity allowing investors to positively influence a much-needed change of behavior by companies, in line with the Finance for Biodiversity Pledge.”