To celebrate four years of work, IIGCC has published the Finance Sector Deforestation Action (FSDA) Progress Report, highlighting the progress made by FSDA signatories with the support of the initiative.
Since launching at COP26 in 2021, Finance Sector Deforestation Action (FSDA) has led the way in raising the bar of ambition for investors seeking to manage financial risks linked to agricultural commodity-driven deforestation in their portfolios. FSDA has provided a platform for corporate engagement along with practical tools, resources and examples of best practice that participants have used to help inform their individual activities.
The progress investors have made in the four years of the initiative’s mandate is a testament to the urgency of the work, the ambition of FSDA participants, and the material, systemic importance of deforestation as an issue for the private sector to tackle.
While progress has been made by FSDA and its participants to achieve the milestones outlined in the original commitment letter, deforestation remains a complex, systemic risk requiring continued engagement from stakeholders across financial institutions, corporate and policymakers.
As FSDA comes to the end of its four-year term in December 2025, efforts to address deforestation will continue and expand.
As a part of the wide network of initiatives on global investor action on deforestation, IIGCC and FSDA participants will leverage the actions, experience and relationships developed through FSDA to mainstream action on deforestation. IIGCC will manage a platform called the Deforestation Investor Group (DIG) from January 2026. DIG will provide a dedicated space for investors to continue efforts to mitigate financial risks related to deforestation, ecosystem conversion and associated risks to human rights in their portfolios; to amplify action; and to engage across the financial ecosystem, in line with their fiduciary duty.