Border to Coast turns attention to biodiversity and deforestation risk

Border to Coast Pensions Partnership (Border to Coast) is intensifying its pressure on companies that fail to address investment risks related to deforestation, as part of its enhanced approach to responsible investing on behalf of Partner Funds.

In the annual update of its policies, Border to Coast has strengthened its stance on deforestation, urging investee companies to curb harmful activities and mitigate this significant climate change risk.

The pool will vote against the management of companies involved in high deforestation-risk commodities, such as palm oil, soy, beef, timber, and paper, if they lack adequate policies to reduce their impact on biodiversity or are embroiled in deforestation-related controversies. It will also oppose the re-election of the Chair of the Sustainability Committee, or the most appropriate agenda item, at companies that do not address risks within their operations and supply chains.

Border to Coast will support shareholder proposals that urge companies to mitigate deforestation risks, adopting a ‘comply or explain’ approach and publicly disclosing the rationale for any votes against such proposals.

Tim Manuel, Head of Responsible investment at Border to Coast, said: “Biodiversity loss is an increasing risk to financial markets. Over half of global GDP is dependent on nature-based services, and looking ten years out, six of the top ten global risks identified by the World Economic Forum are climate and environmental related.

“Engagement on this issue is a crucial component of our attempt to mitigate the devastating impact of climate change and we will continue to push for greater action to limit deforestation, improve natural resource management, and manage the risks of climate change.”