In Brief
- Spring, PRI’s investor stewardship initiative on nature, launches with the support of a group of over 200 investors managing US $15 trillion.
- Engagement commences with 40 companies with influence in countries holding systemically significant natural capital, with 20 additional focus companies announced today.
- Supports wider investor actions to reduce business operational risk, improve supply chain management and ensure responsible political engagement.
- Global focus for the initiative bringing together participating investors based in developed and emerging markets.
- Spring is complementary to and plans to continue to align with other investor led nature initiatives.
Press Release, 26 June 2024, London: The Principles for Responsible Investment (PRI) today launches the engagement process for Spring, an investor stewardship initiative focused on tackling the material financial risks of biodiversity loss by 2030. 204 investors collectively representing US$15 trillion in assets under management (AUM) publicly support the initiative, of which 66 will be actively involved in the engagements with 40 focus companies.
Today, for the first time, the PRI is releasing the names of participating investors and which companies they will be engaging with. A key feature of the initiative is responsible political engagement – a core tenet of corporate governance – and investors will engage with focus companies on how they use their influence to tackle deforestation risks.
Commenting on the announcement, David Atkin, PRI’s CEO, said: “Whichever way you look at it, nature risk is climate risk. What we’re seeing today from investors is a recognition of the importance of nature when managing material investment risks, including deforestation and biodiversity loss, when aligned with their individual fiduciary duty. Spring provides an opportunity to our signatories to address the financially material risks stemming from global nature loss. In doing so, we’re also supporting the investment community’s contribution to and alignment with the objectives and targets of the Global Biodiversity Framework agreed by more than 190 governments.”
The initiative has a particular focus on geographies that are home to critical natural ecosystems and that face future risk of forest loss and land degradation, engaging with companies from emerging markets, including Brazil, as well as those from regions that source forest risk commodities from these countries.
Companies will be engaged across the food and agriculture, mineral mining, automotive, chemicals and banking sectors, including: L’Oreal S.A. (lead investor CCLA Investment Management, Dorval Asset Management); Toyota (lead investor Nomura Asset Management); Bayer (lead investor Erste Asset Management GmbH, Osmosis Investment Management); and Brasil Foods SA (lead investor JGP).
This launch marks the starting point of the engagements. In the coming months, PRI will convene smaller engagement groups for each of the 40 companies to develop targeted and constructive engagement strategies. These companies have been identified as influential actors in the dynamics of forest loss and land degradation due to either their direct or indirect exposure or their significant role in engaging policy makers.
Investors will engage with companies with the objective to improve the nature impacts and risks in their 1) business operation and risk management; 2) supply chain management; and 3) political engagement. The initiative is suited to investors who look to manage financially material nature related risks, as well as investors looking for sustainability outcomes, in line with their fiduciary duty.
In keeping with the PRI’s efforts to facilitate knowledge sharing between investors, Spring brings together the long-standing experience of larger, international signatories with the context-specific expertise of signatories in emerging markets, providing the opportunity for the latter to lead on engagements in their regions.
Additional highlights from today’s announcement include:
- Second batch of 20 focus companies: PRI is releasing a second batch of 20 focus companies. PRI signatories are invited to apply to participate in the engagements with these companies. The timeline for engagements will be led by the endorsing/participating investors.
- Alignment with other investor nature initiatives: The PRI is looking to align with existing investor initiatives whose objectives align with those of Spring to avoid duplication of efforts and ensure alignment in the expectations being put forth to companies. Spring will build on/support the set of investor initiatives taking shape to accelerate action across the set of wide-ranging and inter-related nature issues.
Denisio Liberato, CEO BB Asset, Brazil, said: “The world is at a pivotal moment in the preservation of nature and biodiversity. We need to foster the urgent implementation of public policies that mitigate the risk of biodiversity loss across several supply chains. Through UNPRI Spring, investors can enhance the impact of corporate engagement processes on nature and advocate for a more sustainable and balanced planet, which will also bring more resilient long-term investment returns.”
Emine Isciel, Head of Climate and Environment, Storebrand Asset Management, said: “Halting and reversing forest loss and land degradation is fundamental for a healthy climate, a sustainable future and long-term investment results. We recognize the need for sound public policy to achieve this goal. Spring’s focus on responsible political engagement fits well with Storebrand’s approach to nature and our involvement in collaborative initiatives. We look forward to working with peers from around the world on this important topic.”
Oshadee Siyaguna, Senior Thematic Investment Analyst at Reagan and member of Spring Advisory Committee, said: “We have been supportive of the UNPRI Spring initiative from its very inception, having recognised the importance of responsible political engagement, a key focus of the initiative, in delivering meaningful policy responses to enhance the resiliency of ecological, social, and economic systems. This enhanced resiliency will ultimately contribute to more predictable and stable investment outcomes for investors in the longer term.”
Lucie Smith, Soft Commodities Forum Senior Manager, WBCSD commented: “The investor community can leverage its influence to promote robust corporate practices that effectively combat forest loss and land degradation. By facilitating direct engagement between investors and corporations, the Spring initiative has the potential to foster the development and implementation of nature-positive, climate-positive and equitable value chains. WBCSD supports the initiative’s approach and ambition.”
Rebecca Vaughan, Program Manager at Influence Map, commented: “Reforming the political influence wielded by companies and industry associations is essential to enabling urgently needed public policy to deliver the goals of the Global Biodiversity Framework. It is very encouraging to see Spring gather investors around this critical issue, recognizing both the immediate risk to companies’ corporate governance of their environmental footprints, and the systemic risk to global progress on biodiversity loss.”
Source: PRI
