Deforestation and Shareholder Engagement: Current State and Outlook
Deforestation represents a material issue for companies and investors. Indeed, between 1990 and 2020, the world lost approximately 420 million hectares of forest, accounting for 10% of global forest coverage. Agricultural expansion is responsible for around 80% of global deforestation. Moreover, investors are exposed to systemic, physical and reputational risks through the companies in which they invest.
This white paper aims to raise investors’ awareness of these issues. It presents Æquo’s approach to shareholder engagement on deforestation, outlining our expectations and highlighting the practices observed among the companies we target.
In this document, Æquo has chosen to focus its analysis on food retailers and restaurants because of their central role in putting pressure on ecosystems. We assessed 12 companies in the food sector regarding their deforestation prevention practices. This analysis is based on seven specific objectives that guide our dialogue and encourage companies to adopt more responsible deforestation practices.