A powerful coalition of 30 institutional investors managing more than $3 trillion in assets is calling on governments worldwide to accelerate efforts to end deforestation and ecosystem degradation by 2030. The investors warn that environmental decline is becoming a major financial threat, destabilising markets and portfolios alike.
Their collective appeal, formalised in the Belém Investor Statement on Rainforests, comes just weeks before the UN Climate Conference (COP) in Brazil. Among those backing the statement are leading institutions such as Pictet Group and DNB Asset Management. ‘As investors, we are increasingly concerned about the material financial risks that tropical deforestation and nature loss pose to our portfolios’, the coalition stated. ‘Without stable natural systems, the global economy itself becomes unstable.’
Deforestation continues to accelerate at alarming rates. In 2024 alone, the world lost about 8.1 million hectares of forest—roughly the size of England—driven mainly by agricultural expansion and wildfires. This growing environmental loss, experts warn, is now directly affecting financial stability. ‘Deforestation undermines the natural systems that global markets rely on—from climate regulation to food and water security’, said Jan Erik Saugestad, CEO of Storebrand Asset Management.
The investor coalition is urging governments to establish and enforce deforestation-free supply chains, improve land-use governance, and introduce financial incentives for conservation. Their plea follows widespread frustration over policy delays, including the European Union’s decision to postpone its anti-deforestation law by one year after pushback from major trading partners.
Political uncertainty is also clouding progress. ‘I think Trump has made it more difficult for investors and managers to take climate and biodiversity into account in such a volatile market’, said Ingrid Tungen, Head of Deforestation-Free Markets at Rainforest Foundation Norway.
The Belém statement positions forest protection not just as an environmental concern but as a fundamental economic issue. ‘All the investors we speak to recognise the huge risk of failing to act on deforestation’, said Tungen. ‘It’s not just about morals. Ignoring this crisis will harm the markets directly—and their profits directly.’
As the upcoming COP in Brazil approaches, deforestation is expected to dominate the agenda alongside carbon markets and the energy transition. For investors, policymakers, and companies alike, the signal is clear: protecting forests is no longer optional—it’s essential for global market stability.