WWF to Screen Forest Investors
Alejandro Litovsky
October 24, 2009
Next December, WWF will launch the Investment Screening Guidelines for Financial Investors, which will be used to screen investors and companies whose activities impact forests, such as timber, pulp and paper, palm oil cultivation and mining.
Last month, WWF interviewed 25 senior investors and investment analysts specializing in sustainability and the environment. Together, the firms oversee more than US$7 trillion in assets under management and include global investment firms including: Barclays Capital, Blackrock, Citigroup, Swiss Re and UBS.
The views of these investors are published in WWF’s 2009 Forest Carbon Investor Survey, which agree that:
- There is significant potential for a multi-billon dollar expanded carbon market, however substantial preconditions still need to be met for REDD (the UN-sponsored mechanism for Reducing Emissions from Deforestation and Forest Degradation) to succeed.
- Agreement on a climate treaty at Copenhagen, with support from major economies such as China and India, and legislation in the U.S. are key pre-requisites.
- Public sector funding will be vital before a market-based approach can take effect.
- Problems of verification and monitoring can be addressed if there is a strong political framework in place
- National governments must put in place robust and durable legal frameworks to create certainty for investors.
These initiatives are led by WWF’s Global Forest and Trade Network, which aims to facilitate trade links between companies committed to achieving and supporting responsible forestry.
Photo Credit: Brent Stirton/Getty Images/WWF-UK