Deforestation is responsible for approximately 11% of global carbon emissions and poses material financial, regulatory and litigation risks to investors with exposure. At a systemic level, left unchecked, deforestation will further contribute to global warming, more extreme weather events and the erosion of natural ecosystems – all of which present major economic and financial ramifications, including to financial markets as a whole.
The Deforestation Investor Group (DIG) is IIGCC's platform to support investors in mitigating the financial risks associated with deforestation. It provides capacity-building, tools, and peer learning to support investors wherever they are on their journey to address deforestation and land use change.
DIG is a platform for investors working across different initiatives and workstreams to share experience, strengthen engagement, and scale effective approaches. It is designed to broaden the reach of investor action on deforestation by supporting investors at any stage of their journey to address deforestation risks, in alignment with the Global Stocktake’s goal to halt and reverse deforestation and forest degradation by 2030.
DIG builds on the foundations laid by Finance Sector Deforestation Action (FSDA). It continues FSDA’s mission of mainstreaming investor action as part of a multistakeholder effort to tackle deforestation.
DIG will support investors seeking to mitigate the financial risks associated with deforestation, land use change and associated human rights risks in three ways:
Quarterly meetings offer an opportunity for investors to discuss challenges and share best practices. There will be deep dives on specific topics and updates from ad hoc working groups or relevant initiatives.
Quarterly meetings kick off with a presentation from an expert or discussion with a relevant organisation.
Who can participate?
Only members of DIG can participate in quarterly meetings.
Ad hoc working groups focus on workstreams. This could include developing a piece of guidance, such as expectations for certification bodies, or refining an element of the wider DIG strategy, such as an engagement focus list.
Who can participate?
The topics covered by ad hoc working groups will be discussed within DIG. Ad hoc working groups will be published on the IIGCC website and any IIGCC member can express interest in joining.
Support engagements with companies and banks on achieving investor expectations.
Investors participating in DIG may engage companies that are not currently engaged via other initiatives.
Support systems stewardship to address systemic issues, such as engaging with data providers or certification bodies.
Who can participate?
Engagements will typically be led by members of DIG. Any IIGCC member can express interest in joining engagements.
DIG is a platform for all investors regardless of where they are on their journey to address deforestation risks. It is a space for investors seeking to mitigate the financial risks of deforestation in alignment with the Global Stocktake’s goal to halt and reverse deforestation and forest degradation by 2030.
Investors who are seeking to implement the Guidance on Integrating Deforestation into Net Zero Strategies are eligible to participate in quarterly meetings and join the DIG (subject always to their individual contexts and client mandates). The guidance is a foundational document that underpins IIGCC’s deforestation work and activities under DIG.
The Guidance on Integrating Deforestation into Net Zero Strategies is a foundational document that underpins IIGCC’s deforestation work and activities under DIG.
The guidance is structured to align with NZIF 2.0 and outlines five priority actions, supported by actionable steps across all six NZIF component areas, with tailored recommendations for each asset class. It consolidates existing principles, tools, and best practices to help investors move from ambition to implementation, supporting operational, risk-aware strategies that integrate climate and nature considerations.
From its launch at COP26 to its sunset in 2025, the Finance Sector Deforestation Action (FSDA) brought together more than 30 financial institutions committed to using best efforts to end commodity-driven deforestation in their investment and lending portfolios. The 2024 and 2025 progress reports outline the achievements of FSDA over its four-year term.
FSDA was supported by the UN Climate Change High-Level Champions and Global Optimism. IIGCC managed the FSDA’s Secretariat between September 2024 and December 2025.
*these are founding documents that were developed before IIGCC’s involvement as Secretariat.
Disclaimer: All meetings, communications and initiatives undertaken by IIGCC are designed solely to support investors in understanding risks and opportunities associated with climate change and take action to address them. Our work is conducted in accordance with all the relevant laws, including data protection, competition laws and acting in concert rules. It is a foundational principle of how IIGCC and its members work together that the choice to adopt guidance, best practice tools or tactics prepared by IIGCC or to make commitments in line with any initiative co-sponsored by IIGCC is always at the ultimate discretion of individual members based on their own decision making. IIGCC does not require or seek collective decision-making or action with respect to acquiring, holding, disposing and/or voting of securities. Members are independent fiduciaries responsible for their own investment and voting decisions and must always act completely independently to set their own strategies, policies and practices based on their own best interests. In the conduct of our work we maintain safeguards around information sharing, we do not encourage or participate in collective boycotts, and we ensure that members make their own unilateral decisions. IIGCC’s services to members do not include financial, legal or investment advice.
Members can find out more about current work within the corporate programme here
