• 30 institutional investors, including Pictet Group and DNB Asset Management, back the Belém Investor Statement on Rainforests.
• The world lost 8.1 million hectares of forest in 2024, driven by agriculture and wildfires.
• Investors call for legal, regulatory, and financial stability to safeguard forests and global markets.
Global Investors Mobilize Ahead of COP in Brazil
A coalition of global investors representing more than $3 trillion in assets has called on governments to halt and reverse deforestation and ecosystem degradation by 2030, warning that ongoing nature loss poses material financial risks to global markets.
The initiative, formalized through the Belém Investor Statement on Rainforests, comes ahead of the United Nations climate conference in Brazil next month. The statement, open for signatures until November 1, has already drawn backing from 30 major institutional investors including Pictet Group and DNB Asset Management.
“As investors, we are increasingly concerned about the material financial risks that tropical deforestation and nature loss pose to our portfolios,” the coalition said. “Without stable natural systems, the global economy itself becomes unstable.”
Economic and Environmental Stakes Rising
A report released last week revealed that global deforestation continues at alarming rates, with an estimated 8.1 million hectares lost in 2024—an area roughly equivalent to the size of England. Agricultural expansion, coupled with escalating wildfires, remains the primary driver.
Investors warn that unchecked forest loss is undermining the foundation of global economic stability. “Deforestation undermines the natural systems that global markets rely on—from climate regulation to food and water security,” said Jan Erik Saugestad, CEO of Storebrand Asset Management.
The group’s appeal adds growing investor pressure on governments and corporations to strengthen deforestation-free supply chains, improve land-use governance, and implement financial incentives for conservation.
Policy Delays and Political Headwinds
The push from investors comes amid growing frustration with delayed policy implementation. Earlier this year, the European Union postponed enforcement of its anti-deforestation regulation by one year following strong opposition from trade partners including Brazil, Indonesia, and the United States. Critics argue the compliance requirements—intended to block products linked to deforestation—could strain exporters and raise costs for global commodity trade.
At the same time, political developments in the United States have introduced fresh uncertainty. The return of climate-skeptic policies under U.S. President Donald Trump has reduced momentum for coordinated environmental action, according to advocates.
“I think Trump has made it more difficult for investors and managers to take climate and biodiversity into account in such a volatile market,” said Ingrid Tungen, Head of Deforestation-Free Markets at Rainforest Foundation Norway.
Investors Frame Deforestation as Financial Risk
For the investor coalition, the argument extends beyond environmental ethics—it’s a call for economic prudence. “All the investors we speak to recognize the huge risk of failing to act on deforestation,” said Tungen. “It’s not just about morals. Ignoring this crisis will harm the markets directly—and their profits directly.”
The Belém Investor Statement outlines several recommendations: enforceable forest protection policies, transparent deforestation data, incentives for sustainable agriculture, and alignment with the Paris Agreement and Global Biodiversity Framework.
Asset managers are increasingly viewing biodiversity loss as a systemic risk on par with climate change, with impacts spanning commodity prices, water scarcity, and supply chain disruption. Financial institutions are now integrating deforestation risk into due diligence frameworks and portfolio screening processes, reflecting a broader shift toward nature-related financial disclosure.
A Turning Point Ahead of the Brazil COP
With the UN climate conference set in Brazil—home to more than 60% of the Amazon rainforest—the pressure on policymakers is expected to intensify. The investor call places deforestation alongside energy transition and carbon markets as top agenda items.
For executives, policymakers, and investors, the message is clear: the cost of inaction is rising. The world’s forests—vital for carbon absorption, biodiversity, and economic resilience—are becoming a financial, not just ecological, liability.
If global governments heed the call, the Belém statement could become a turning point in aligning capital markets with the protection of the planet’s remaining rainforests—before they disappear from both maps and balance sheets.
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