Investor coalition urges urgent action as 2024 forest losses threaten portfolios and market stability
Tropical deforestation is now recognized as a direct financial risk to global portfolios, with over US$3tn in investor assets urging governments to halt and reverse forest loss by 2030, according to a coalition statement ahead of the United Nations climate conference in Brazil.
Reuters reported that the Belém Investor Statement on Rainforests, already signed by around 30 institutional investors including Pictet Group and DNB Asset Management, frames unchecked deforestation as a material threat to economic stability and investment returns.
“As investors, we are increasingly concerned about the material financial risks that tropical deforestation and nature loss pose to our portfolios,” the coalition said, emphasizing the need for policies that deliver legal, regulatory, and financial certainty to protect forests and safeguard markets.
Recent analysis by the Forest Declaration Assessment reveals that the world lost 8.1 million hectares of forest in 2024 alone—an area about the size of England—placing the planet 63 percent behind the 2030 reversal target set by over 140 countries.
Agricultural expansion and wildfires, particularly in the Amazon, remain the primary drivers, with fires alone responsible for 6.73 million hectares of loss and nearly 800 million metric tons of CO2 released this year, as reported by the assessment’s lead author, Erin Matson.
Jan Erik Saugestad, CEO of Storebrand Asset Management, underscored the economic implications: “Deforestation undermines the natural systems that global markets rely on—from climate regulation to food and water security”.
According to Reuters, the investor group’s call comes as policy delays and political headwinds challenge progress.
The European Union postponed its anti-deforestation law by a year after opposition from major trading partners, while recent US policy shifts have complicated coordinated environmental action, according to Ingrid Tungen of Rainforest Foundation Norway.
The Forest Declaration Assessment estimates that US$117bn to US$299bn in financing is needed to meet 2030 goals, compared to the current US$5.9bn in annual public funding for forest protection.
Brazil’s proposed Tropical Forest Forever Facility, aiming to mobilize US$125bn for long-term forest finance, is seen as a potential turning point if successfully launched at COP30 in Belem, according to Matson.
