FSDA is based on the principles that deforestation is a climate and biodiversity issue; halting deforestation is vital to achieving the goals of the Paris Agreement and advancing biodiversity objectives under the Convention on Biological Diversity; and deforestation poses material financial risks to investors.
In joining the initiative, each financial institution signed a commitment letter*. The letter sets out a commitment for financial institutions to engage companies in their investment portfolios, and to advocate for policymakers and regulators to adopt and pursue actions that provide an appropriate enabling environment towards eliminating commodity-driven deforestation. Participating organisations also commit individually to create organisational plans, milestones and incentives to fulfil their commitments, including publicly reporting on progress by 2025.
Financial institutions participate in the FSDA initiative in support of their fiduciary duty to act in the best long-term interests of their investors, beneficiaries and clients. In doing so they recognize the increasing urgency of addressing climate, biodiversity and food security-related risks and opportunities across their portfolios.
FSDA is supported by the UN Climate Change High-Level Champions and Global Optimism.
IIGCC has managed the FSDA’s Secretariat since September 2024. In this role, IIGCC manages the core operations and administration of FSDA.
All participants act independently and IIGCC supports them in fulfilling their individual FSDA commitments by developing and/or promoting relevant guidance and by supporting company engagements.
For more information and to join the initiative, please contact Norah Berk nberk@iigcc.org.
*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
