Post by account_disabled on Feb 18, 2024 0:47:08 GMT -5
Deforestation, one of today's biggest environmental challenges, is increasingly attracting the attention of climate-conscious investors. Despite global commitments to reduce Greenhouse Gas (GHG) emissions to zero and offset any residual emissions, pension funds are undermining net zero.
The lack of commitment from pension Middle East Mobile Number List funds and financial providers is a significant problem, as they often invest in companies linked to the degradation of forests and other natural ecosystems, as recent research by Make My Money Matter reveals . Therefore, it is crucial that these entities take measures to prevent deforestation and protect biodiversity, as Edie highlights .
Finances are key to promoting transition
The goal of net zero is to achieve a balance between GHG emissions and their removal from the atmosphere, which is essential to avoid the worst effects of climate change and keep global warming below 1.5°C. However, according to research by campaign group Make My Money Matter only a fifth of pension funds and providers involved in the world's largest net zero business collaborations have comprehensive plans to tackle deforestation.
Only 19% of these funds have comprehensive plans to address deforestation, both at the top level and for specific forest risk products such as soy, palm oil, leather, beef and timber.
With deforestation accounting for a tenth of annual global GHG emissions, Make My Money Matter warns that these pension funds are undermining net zero, and potentially sending greenwashing messages to their clients. The campaign group is being supported in its calls for stronger deforestation policies by Global Canopy .
«Finance is key to driving change and pension funds, as the largest group of asset owners in the world, have real power to take the lead […]»
Niki Mardas, CEO of Global Canopy.
Niki Mardas, CEO of Global Canopy, is clear: ignoring the impact of deforestation investments is not a viable option for our planet, life and business. But unfortunately, many still do not understand the magnitude of the problem. “Net zero emissions policies without action on deforestation will not work,” Mardas warns. “Regulations and global demand for action will intensify, so the best time for pension funds to act was yesterday, but the second best time is now.”
pensions undermine net zero
Policy changes
In this regard, the UK government has implemented a “comply or explain” requirement aimed at tackling deforestation in international supply chains. However, this requirement does not apply to the financial sector, only to companies involved in the physical supply of materials and products. Additionally, it only covers deforestation that is considered illegal in the country of origin. The European Union introduced similar measures at the end of 2022.
Following these commitments, the government recently presented an updated Green Finance strategy addressing several updated commitments to stop financial flows towards activities that damage nature and increase funding for nature conservation and restoration.
The strategy includes the government's commitment to convene a series of roundtables with financial institutions on deforestation this year, in line with its commitments to halt and reverse forest loss and degradation made at COP26 in 2021.
“The Government has an obvious opportunity to show it is serious about tackling deforestation by supporting an amendment to the Financial Services and Markets Bill that explicitly seeks to hold British financial institutions accountable for investments in deforestation […].”
Veronica Oakeshott, Forests Campaign Leader at Global Witness.
Protecting nature is essential not only for the survival of the planet, but also for long-term economic and social stability. It is therefore necessary for pensions to resume their commitments and promote sustainability in their investments as part of their social responsibility, despite currently undermining the net zero objective and the fight against climate change.
The lack of commitment from pension Middle East Mobile Number List funds and financial providers is a significant problem, as they often invest in companies linked to the degradation of forests and other natural ecosystems, as recent research by Make My Money Matter reveals . Therefore, it is crucial that these entities take measures to prevent deforestation and protect biodiversity, as Edie highlights .
Finances are key to promoting transition
The goal of net zero is to achieve a balance between GHG emissions and their removal from the atmosphere, which is essential to avoid the worst effects of climate change and keep global warming below 1.5°C. However, according to research by campaign group Make My Money Matter only a fifth of pension funds and providers involved in the world's largest net zero business collaborations have comprehensive plans to tackle deforestation.
Only 19% of these funds have comprehensive plans to address deforestation, both at the top level and for specific forest risk products such as soy, palm oil, leather, beef and timber.
With deforestation accounting for a tenth of annual global GHG emissions, Make My Money Matter warns that these pension funds are undermining net zero, and potentially sending greenwashing messages to their clients. The campaign group is being supported in its calls for stronger deforestation policies by Global Canopy .
«Finance is key to driving change and pension funds, as the largest group of asset owners in the world, have real power to take the lead […]»
Niki Mardas, CEO of Global Canopy.
Niki Mardas, CEO of Global Canopy, is clear: ignoring the impact of deforestation investments is not a viable option for our planet, life and business. But unfortunately, many still do not understand the magnitude of the problem. “Net zero emissions policies without action on deforestation will not work,” Mardas warns. “Regulations and global demand for action will intensify, so the best time for pension funds to act was yesterday, but the second best time is now.”
pensions undermine net zero
Policy changes
In this regard, the UK government has implemented a “comply or explain” requirement aimed at tackling deforestation in international supply chains. However, this requirement does not apply to the financial sector, only to companies involved in the physical supply of materials and products. Additionally, it only covers deforestation that is considered illegal in the country of origin. The European Union introduced similar measures at the end of 2022.
Following these commitments, the government recently presented an updated Green Finance strategy addressing several updated commitments to stop financial flows towards activities that damage nature and increase funding for nature conservation and restoration.
The strategy includes the government's commitment to convene a series of roundtables with financial institutions on deforestation this year, in line with its commitments to halt and reverse forest loss and degradation made at COP26 in 2021.
“The Government has an obvious opportunity to show it is serious about tackling deforestation by supporting an amendment to the Financial Services and Markets Bill that explicitly seeks to hold British financial institutions accountable for investments in deforestation […].”
Veronica Oakeshott, Forests Campaign Leader at Global Witness.
Protecting nature is essential not only for the survival of the planet, but also for long-term economic and social stability. It is therefore necessary for pensions to resume their commitments and promote sustainability in their investments as part of their social responsibility, despite currently undermining the net zero objective and the fight against climate change.