Things aren’t looking good for the world’s forests. With surging deforestation from Brazil to the Congo Basin, environmental policy roll backs, assaults on environmental defenders, and fires burning through rainforests on four continents, we need to drastically change course or watch as the last of our rainforests go up in smoke.
Deforestation to open plantations for palm oil, pulp and paper, soy, rubber, timber and cattle is responsible for almost one quarter of all global greenhouse gas emissions. American Funds, owned by Capital Group, has huge investments in companies like Pepsico, Yum Brands, Hormel, McDonald’s and Procter & Gamble that use palm oil, beef and paper pulp in their products but have failed to eliminate deforestation from their operations. This means Capital Group has a key role to play in voting for No Deforestation policies at these companies and engaging with company management to make sure these policies are implemented.
In order to do that, Capital Group needs to get its own house in order.
If they take appropriate action, large fund companies can move the entire market and play a crucial role in averting catastrophic climate outcomes, and instead finance the transition to a livable planet. But they won’t do it without pressure from us.
Urge Capital Group to adopt a No Deforestation Policy!
To: Capital Group
From: As You Sow & Friends of the Earth U.S.
Dear Fund Manager,
Massive deforestation to clear land for palm oil, pulp and paper, soy, rubber, timber and cattle is responsible for almost one quarter of all global greenhouse gas emissions, as well as an epidemic of land conflicts and widespread abuses of the rights of indigenous peoples. As an investment firm that holds millions of dollars in shares in the agribusiness companies most responsible for devastating our rainforests, these issues expose you and your clients to a host of material risks.
Environmental and human rights impacts – and climate impacts above all – are increasingly recognized to drive material risks to investment. Awareness of these risks is growing quickly within the financial sector – and now is the time for you to get on board.
Leading responsible investment firms have begun to develop comprehensive policies to address deforestation risk, and I believe Capital Group needs to do the same. It is both a moral and an economic imperative. You have tremendous power – and the world needs you to start using that power responsibly. I urge you to adopt a strong deforestation risk policy across all your portfolios.