Border to Coast is to increase pressure on companies which are failing to address their investment risks linked to biodiversity and deforestation.
As part of the annual update of its policies, the pension pool has particularly bolstered its stance on deforestation. It intends to put more pressure on investee companies to reduce their damaging activities as well as to mitigate this material climate change risk.
Border to Coast will vote against management at companies involved in high deforestation-risk commodities, such as palm oil, soy, beef, timber and paper, which do not have adequate policies in place to reduce their impact on biodiversity.
It will oppose the re-election of the chair of the sustainability committee at companies failing to address such risks within their operations and supply chains.
Border to Coast will also vote in favour of shareholder proposals to make companies mitigate their deforestation risks, taking a ‘comply or explain’ approach and publicly disclosing the rationale if it votes against.
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 10 years out, six of the top 10 global risks identified by the World Economic Forum are climate and environmental related.”
And he added: “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.”
Comments