Tag: LGIM
Most investors exposed to deforestation risk in commodities lack policies to address it, says report
Global Canopy report also looks at how investors with deforestation policies work to implement them Global Canopy report also looks at how investors with deforestation policies work to implement them Global Canopy report also looks at how investors with deforestation policies work to implement them
Most investors exposed to deforestation risk in commodities lack policies to address it, says report
Jan 13th, 2022
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…