This guidance on Integrating Deforestation into Net Zero Strategies supports institutional investors seeking to address deforestation, land conversion, and associated human rights risks, through a climate-focused lens. The guidance complements the existing Net Zero Investment Framework (NZIF) which contains advanced action points on deforestation. It is intended to be equally useful for those investors following other net zero frameworks and methodologies.
This guidance offers a flexible, practical toolkit to help investors identify and act on material risks where they arise. Recognising that deforestation risks vary by geography and asset class, the guidance allows for flexibility in application and is designed to support investors to develop their own net zero strategies, targets, and transition plans. This guidance is not a prescriptive protocol, standard, or reporting framework. Investors should use this guidance within the context of their own strategies, agendas, starting points, client mandates and regulatory considerations, all of which may inform their own unilateral decisions regarding the ways and means with which they set and reach net zero goals.
The guidance translates investor inputs into 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.
Investors are encouraged to begin with five actions, which include:
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assessing exposure
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developing a deforestation policy
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integrating considerations of deforestation and associated risks into investment decision-making
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addressing material exposure to deforestation and associated risks through portfolio stewardship
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conducting systems-level stewardship by advocating for regulation and policies that aim to curb deforestation globally and scale deforestation- and conversion-free supply chains
The guidance underpins the strategic focus for IIGCC's Deforestation Investor Group (DIG) and provides the framework for members’ deforestation risk management. DIG is IIGCC’s platform to support investors seeking to mitigate the financial risks associated with deforestation. It aims to build capacity, develop frameworks and tools, and support engagements.