# About

Institutional investors engaging with sovereigns on deforestation.


## The investment case for halting deforestation

As financial institutions, who have a fiduciary duty to act in the best long-term interests of our beneficiaries, investors recognize the crucial role that tropical forests and other types of natural vegetation play in tackling climate change, protecting biodiversity and ensuring ecosystem services.Policies and regulations play an important role not only in preserving important biomes, but also ensuring economic growth and reducing uncertainty about the conditions for investing in or providing financial services to these countries.  They are key to ensuring a just transition for nature and underline the importance of investor dialogue with sovereigns.


## Collective investor engagement

Multipronged and multi-stakeholder engagement strategies are required for complex issues that touch on all aspects of life and society. Tackling deforestation is a case in point – it requires multiple parties to work together to find solutions that sustainably conserve these resources, while considering the impact on livelihoods and local and indigenous communities.


## Engaging with Brazil

Investors are looking to convey to government and its debt management office specifically, as well as the Central Bank, that how the country manages critically important natural resources such as forests can risk their ability to secure external funding to support their domestic efforts.Brazil’s government has recently demonstrated clear commitment to eliminating deforestation and protecting the rights of indigenous peoples, but investors seek to see coordination amongst government agents to transform commitments into action and yield results. Via this dialogue, they desire five outcomes from the Brazilian government:Significant reduction in deforestation rates, Enforcement of Brazil’s Forest Code.Reinforcement of Brazil’s agencies tasked with implementing environmental and human rights legislation, and avoidance of any legislative developments that may negatively impact forest protection.Prevention of fires in or near forest areas.Public access to data on deforestation, forest cover, tenure and traceability of commodity supply chains.


## Engaging with Indonesia

Indonesia has made significant progress in the past decade on decreasing deforestation rates. Investors recognize the progress the country has made in protecting its tropical forests and acknowledge the potential for growth in Indonesia. To facilitate taking part in this growth, investors seek to better understand the government’s efforts and advances on tackling deforestation and broader nature-related risks and opportunities.The Indonesia working group aims to work constructively with, among others, relevant government authorities and financial market regulators to promote social and environmental governance and to reduce financial risks arising from deforestation and land degradation. Additionally, given tropical forests’ vital role in Indonesia’s nationally determined contribution (NDC), the group seeks to support the government in ensuring its climate targets are me


## Engaging with Consumer Countries (US / UK / EU)

While substantial progress is being made in the two initial workstreams in producing countries, the investors involved in the IPDD recognise the importance of engaging on the demand side – i.e., in countries that are major economies and consumers of commodities linked to deforestation and forest degradation.  IPDD’s Consumer Countries working group engages with stakeholders in the European Union, United Kingdom, and United States.This workstream considers how the regulatory environment can help tackle commodity-driven deforestation, given the increase in deforestation related regulation currently being debated and passed in consumer countries. Further priorities include international harmonisation, scope, roadmaps and timelines towards implementation and enforcement and monitoring.


### Get involved today

Institutional investors (investment managers or asset owners) are welcome to join the IPDD. Applications are open.

[Get involved](https://www.ipddinitiative.com/get-involved)