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Biodiversity and Deforestation

All companies, regardless of sector, have an impact on both biodiversity and ecosystems and depend on ecosystem services. Investors are exposed to biodiversity loss predominantly through land use change as a result of deforestation through clearing land for agriculture. As a part of our commitment to halt deforestation, we will engage with companies in our portfolio, that are involved in production, trade, use or financing of forest-risk commodities, particularly palm oil, soy, timber and cattle products. We will cooperate with other financial institutions to promote standards for measuring, monitoring and reporting on direct and indirect deforestation risk. By 2020 we will map our portfolio exposure to deforestation risk and report on progress annually.

Deforestation-risk assessment

Storebrand is committed to addressing commodity-driven deforestation and recognizes the crucial role that tropical forests play in tackling climate change, protecting biodiversity and ensuring ecosystem services. Our Deforestation Policy is a call on call on companies to eliminate deforestation and we encourage higher standards and collaborate with other investors to help companies to improve.

Despite the increasing attention amongst institutional investors on the importance of tropical forests to the global economy and environment, it remains challenging for institutional investors to effectively address risks arising from deforestation. Although a range of new tools and data sources have recently become publicly available, there is the need to better understand, assess and manage deforestation risks in a systematic manner and integrate deforestation data into existing systems for risk analysis.
In response to this challenge, Storebrand has initiated a research project to conduct a deforestation tools assessment and gap analysis. The research findings and recommendations of this research project will be presented to institutional investors with the aim of helping others to also address deforestation risk in a systematic manner.