Some of the world’s largest financial institutions including Vanguard, Legal and General Investment Management (LGIM) and Baillie Gifford are not sufficiently managing deforestation risk in commodities, according to a new report from Global Canopy.
Financial institutions without deforestation policies have invested almost $2.6trn into commodity companies with significant exposure to deforestation risk, the report found, with 93 of the 150 largest investors in the sector lacking any kind of commodity-specific deforestation policy.
The report assesses financial companies’ policies and commitments across four commodities with a significant deforestation risk: timber, soy, palm oil and cattle. Companies are then given a rating out of five.
The highest score achieved by a company is three out of five, with eight firms including BNP Paribas, Deutsche Bank and Rabobank topping the list. Some of the world’s largest investors sit at the other e…