London, 14 September 2026 – The Institutional Investors Group on Climate Change (IIGCC) today published its new Investor Expectations of Companies on Deforestation, providing investors and companies with a clear, practical framework for addressing deforestation and associated risks across corporate operations and supply chains.
Developed with input from investors participating in IIGCC's Deforestation Investor Group (DIG), the expectations build on the foundations laid by the pioneering investor expectations developed through the Finance Sector Deforestation Action (FSDA) initiative.
These expectations were developed in consultation with the Accountability Framework initiative (AFi), AIGCC, IGCC, Ceres, FAIRR, Global Canopy, Rainforest Foundation Norway (RFN) and PRI Spring, bringing together existing guidance and accepted practice into a single, aligned framework for investor engagement.
Rather than creating additional reporting requirements, the expectations are designed to align with existing frameworks that many companies are already working towards, including the Taskforce on Nature-related Financial Disclosures (TNFD) and IFRS S2. They are intended to help companies integrate deforestation into broader climate and nature transition planning, governance, risk management and disclosure processes.
The publication sets out five core expectations for companies to act on their deforestation risk:
1. The company sets a public commitment to production and sourcing that is free from deforestation and associated impacts, and to respecting human rights.
2. The company assesses its operations, sourcing, and financing for deforestation and associated risks.
3. The company transforms and manages its operations and supply chains to ensure they are free from deforestation and associated impacts.
4. The company positively participates in collaborative actions and engagements that protect landscapes from deforestation and associated risks.
5. Each year, the company publicly discloses its progress towards production and sourcing that is free from deforestation and associated impacts.
Together these actions provide a practical roadmap for companies seeking to strengthen supply chain resilience, manage financially material risks and contribute to efforts to halt and reverse deforestation. The expectations are intended to support consistent dialogue between investors and companies, while reducing fragmentation by aligning investor asks with established market frameworks and best practice guidance.
“Financial risks arising from deforestation permeate global supply chains. It is part of the fiduciary duty of investors to reduce such risks. The new IIGCC Investor Expectations of Companies on Deforestation clearly outline what companies should do to reduce their impact and risk exposure, and will hopefully contribute to increased investor engagement on this critical issue.” - Vemund Olsen, Senior Sustainability Analyst, Storebrand Asset Management
“Addressing deforestation requires action across entire value chains and different landscapes. By establishing a common set of expectations, this framework can help create a more consistent dialogue with companies and strengthen collective investor action to address deforestation and its associated climate, nature and human rights risks.” - Bruno Bernardo, Sustainable Investments Analyst at Régia Capital
“We see these expectations as a practical tool to support better conversations with companies on deforestation. By bringing together existing frameworks and market best practice, they provide a common language for engagement and a consistent benchmark for assessing progress over time.” - Isobel Mitchell, Senior Responsible Investment Associate, Church Commissioners for England
ENDS
Media Contact:
Sara Trett
Communications Manager
strett@iigcc.org
+44 (0) 7436 161 227
About the Institutional Investors Group on Climate Change: IIGCC is an investor-led membership organisation. We bring the investment community together to make progress towards a net zero and climate resilient future. We work with our members to create guidance, tools, frameworks and resources that can help them, in their individual contexts, in managing climate-related financial risk within their portfolios and making the most of opportunities presented by the transition towards a decarbonised global economy and the realities of a changing climate. We have 400+ members across 20+ countries. More information at www.iigcc.org
Disclaimer: All 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 competition laws and acting in concert rules. IIGCC’s services to members do not include financial, legal or investment advice. The views expressed here do not necessarily represent those of all IIGCC members.