Investor bloc moves ahead of COP in Brazil
A coalition of institutional investors managing more than 3 trillion dollars in assets is calling on governments to adopt enforceable measures to stop and reverse deforestation by 2030. The group warns that continued forest loss poses material financial risks to global markets and economic stability.
The appeal, known as the Belém Investor Statement on Rainforests, was launched ahead of next month’s UN Climate Conference in Brazil. Thirty investors, including Pictet Group and DNB Asset Management, have endorsed the statement, which remains open for additional signatures until November 1.
“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.”
Mounting financial and ecological risk
Recent data show that the world lost 8.1 million hectares of forest in 2024, roughly equivalent to the size of England. Agricultural expansion and worsening wildfires remain the main drivers. The losses are destabilizing climate systems and eroding resource security in ways that investors can no longer ignore.
“Deforestation undermines the natural systems that global markets rely on—from climate regulation to food and water security,” said Jan Erik Saugestad, Chief Executive of Storebrand Asset Management.
The statement urges governments to strengthen land-use governance, ensure supply chains are free from deforestation, and expand fiscal incentives for conservation.
Policy inertia and political headwinds
Regulatory momentum has slowed. The European Union recently delayed implementation of its anti-deforestation law by one year after resistance from trade partners including Brazil, Indonesia, and the United States. Critics argue that the rules could raise compliance costs and disrupt commodity exports, while environmental advocates warn that repeated delays weaken accountability.
In the United States, renewed climate skepticism under President Donald Trump has also complicated coordination.
“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.
From moral appeal to market imperative
For the investors behind the Belém statement, the case is economic as much as ethical. “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 investor statement calls for enforceable protection laws, transparent deforestation data, incentives for sustainable agriculture, and alignment with the Paris Agreement and the Global Biodiversity Framework.
Asset managers increasingly view biodiversity loss as a systemic risk comparable to climate change, influencing commodity prices, water availability, and supply chain resilience. Financial institutions are now integrating deforestation risk into portfolio screening and disclosure systems, signaling a shift in how nature-related financial risks are managed.
Actionable intelligence
The Belém Investor Statement signals a moment when market influence can shape global environmental policy. Governments preparing for the COP in Brazil can use investor alignment to design coherent and enforceable forest-protection frameworks that attract long-term capital.
Finance ministries can begin incorporating nature risk into debt and fiscal planning, while development banks and sovereign funds can structure new green finance instruments tied to measurable forest outcomes.
If governments act on this momentum, the initiative could help redefine forests not as expendable land but as vital economic infrastructure, linking capital stability to the health of the planet’s remaining rainforests.
Related Content: Banking on Nature: Financiers Take Aim at Deforestation
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