THE Church Commissioners are to eliminate commodity-driven deforestation from their investment portfolios as part of a drive towards net zero and a “nature-positive” economy, it was announced this week.
The initiative comes from a partnership of global investors, the Finance Sector Deforestation Action (FSDA). The FSDA hopes to eliminate deforestation by 2025 from the production of agricultural soft commodities, such as beef, soy, palm oil, pulp, and paper, as part of a global transition towards sustainable production.
The FDSA has published a document setting out its expectations for companies, which are called on to take concrete action to prevent deforestation in production and report regularly on progress in this area.
“We recognise the role that agriculture, livestock and forestry sectors have in enabling economic development and sustaining the livelihoods of farmers and local communities, and that it is imperative to ensure sustainable production aligned with climate change mitigation, biodiversity protection and supporting global livelihoods as well as food security,” the FDSA document says.
Achieving this is “an urgent and complex endeavour”, the FDSA says; it expects companies to act “with purpose and determination”.
Specifically, they are required to make a public commitment to deforestation-free production that also respects human rights, and to ensuring that suppliers follow the same good practice. They are asked to commit time and resources to “collaborative actions to advance sustainability”.
They are also required to ensure that smallholders and small producers are not excluded from supply chains.
This initiative draws on other interventions made by the Church Commissioners and Church of England Pensions Board on deforestation, including the signing of the Financial Sector Commitment on Eliminating Commodity-driven Deforestation.
The Church Commissioners’ deputy head of responsible investment, Olga Hancock, said: “It’s vital that we solve deforestation to help counter the climate crisis. Addressing soft commodity-driven deforestation plays a pivotal role in addressing this widespread, global issue.
“The financial sector plays a critical role in ensuring soft commodities are sourced sustainably, without driving deforestation further. Through this collaborative effort, the financial community can take a vital step in making this change happen, and ensuring the world’s rainforests are protected.”