Institutional investors, including European pension providers, have urged global governments to adopt strong policies to halt and reverse deforestation and forest degradation by 2030 and to prevent further loss of natural ecosystems. 

The Belém Investor Statement on Rainforests highlighted investor concerns about the financial risks posed by tropical deforestation and nature loss, warning that exposure to commodities produced on deforested land creates material vulnerabilities across global investment and lending portfolios.

It also said that the degradation of forests threatens the ecosystem services on which economies depend, including water regulation, soil fertility, and climate stability, amplifying systemic financial risk.

Given this, it argued that emerging legislation, such as the EU Deforestation Regulation, demands "urgent and measurable" action to fill the gaps where voluntary commitments have fallen short. 

The statement, which was coordinated by Rainforest Foundation Norway, Global Canopy, Asia Investor Group on Climate Change and Ceres, has already received backing from more than 33 organisations, representing around USD 3trn in assets. 

This includes a number of pension providers, such as Denmark's Sampension, Norway's KLP, Dutch pension fund Huisarts & Pensioen, and the North East Scotland Pension Fund.

The statement also received support from the FAIIR Initiative and the Institutional Investors Group on Climate Change (IIGCC), as well as further backing from a number of asset managers, such as Achmea Investment Management, DNB Asset Management, and Storebrand Asset Management. 

"Protecting forests is not only an ecological imperative but also a financial one to ensure long-term value for clients," the statement said.

"Forests underpin long-term investments and macroeconomic stability in producer as well as consumer countries. 

"Investors are prepared to align capital with a future in which tropical forests and ecosystems thrive, in line with the Paris Agreement’s goals of aligning financial flows with low-emission, climate-resilient development.

"However, this alignment requires clear policy signals, enforceable laws, and international cooperation."

In particular, the group of investors urged governments around the world to adopt and implement strong policies to halt and reverse deforestation and forest degradation by 2030 and to prevent further loss of natural ecosystems. 

"We call on governments, in tropical rainforest countries and in countries importing forest-risk commodities, to implement strong policies, regulations, and financial mechanisms to eliminate commodity-driven deforestation," it stated. 

It also encouraged the governments to partner to promote legal and
deforestation-, conversion-, and degradation-free trade in high-risk sectors, to provide financial and technical support for producer countries and align around best practices. 

The letter also called on governments to adopt harmonised disclosure rules across jurisdictions to reduce investor uncertainty and support the redirection of capital toward sustainable activities. 

Commenting on the call for action, Sampension head of environmental, social and governance (ESG), Jacob Ehlerth Jørgensen, said: "When the world's rainforests are cleared to, for example, make room for cattle ranching, the negative effects spread like rings in the water. 

"Among other things, species lose their habitats and can become extinct. Ecosystems risk collapsing. And CO2 is released to the detriment of the climate. This is deeply worrying, and therefore it is important that the development is stopped. 

"The derivative effects of deforestation also constitute a financial risk for investors' portfolios.

"That is why we are also increasingly focusing on this area, where we must of course shoulder our share of responsibility, including through our active ownership. But there is also a need for political action to put an end to the clearing of rainforests, and that is why we support this initiative. 

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