PRI launches ‘Spring’ engagement process to tackle biodiversity loss

June 27th, 2024

The Principles for Responsible Investment (PRI) has launched the engagement process for Spring, an investor stewardship initiative focused on tackling the material financial risks of biodiversity loss.

The initiative aims to promote responsible political engagement and encourage investors to engage with focus companies on how they can use their influence to tackle deforestation risks.

It will focus on geographies that host critical natural ecosystems and are at risk of future forest loss and land degradation. It will also engage in companies in emerging markets, such as Brazil, as well as those in regions that import commodities associated with forest risk from these countries.

The initiative is supported by 204 investors with over $15 trillion in assets under management. This consists of 66 investors that will be actively involved in the engagements with 40 focus companies.

For example, CCLA Investment and Dorval Asset Management will serve as lead investors for L’Oreal, Nomura Asset Management will engage with Toyota and JGP will focus on Brasil Foods SA.

Additional companies from across the food and agriculture, mineral mining, automotive, chemical and banking sectors have also been selected as focus companies.

David Atkin, CEO of PRI, said: “Spring provides an opportunity to our signatories to address the financially material risks stemming from global nature loss. In doing so, we’re also supporting the investment community’s contribution to and alignment with the objectives and targets of the Global Biodiversity Framework agreed by more than 190 governments.”

PRI also announced plans to assemble smaller engagement groups for each of the 40 companies to develop targeted and constructive engagement strategies in the coming months.

Investors will work with these companies to improve their nature impacts and risks in three areas: business operation and risk management, supply chain management and political engagement.

The selected companies have been chosen because they are influential actors in the dynamics of forest loss and land degradation due to either their direct or indirect exposure, or their significant role in engaging policy makers.

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