BORDER TO COAST TURNS SPOTLIGHT ON BIODIVERSITY AND DEFORESTATION RISK
Posted on February 6th, 2025
Border to Coast Pensions Partnership (“Border to Coast”) will increase pressure on companies failing to address investment risks linked to deforestation as it strengthens its approach as a responsible investor on behalf of Partner Funds.
As part of the annual update of its policies, Border to Coast has bolstered its stance on deforestation, placing more pressure on investee companies to reduce damaging activities and mitigate this material climate change risk.
The pool will vote against management at companies involved in high deforestation-risk commodities, such as palm oil, soy, beef, timber, and paper, which do not have adequate policies in place to reduce their impact on biodiversity or are involved in deforestation-linked controversies. It will oppose the re-election of the Chair of the Sustainability Committee, or most appropriate agenda item, at companies failing to address risks within operations and supply chains.
Border to Coast will also vote in favour of shareholder proposals that ask companies to mitigate deforestation risks, taking a ‘comply or explain’ approach, and publicly disclosing the rationale if it votes against.
“Biodiversity loss is an increasing risk to financial markets. Over half of global GDP is dependent on nature-based services, and looking ten years out, six of the top ten global risks identified by the World Economic Forum are climate and environmental related.
“Engagement on this issue is a crucial component of our attempt to mitigate the devastating impact of climate change and we will continue to push for greater action to limit deforestation, improve natural resource management, and manage the risks of climate change.”
As an active steward of assets on behalf of LGPS Partner Funds, Border to Coast is committed to reviewing and strengthening its approach as a long-term responsible investor. Its responsible investment policies (Responsible Investment Policy; Climate Change Policy; and Corporate Governance and Voting Guidelines), outline its stance and approach to managing and mitigating the risks ESG (Environmental, Social, Governance) factors pose to the long-term investments of its Partner Funds.
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