Dimensional Fund Advisers Needs a No Deforestation Policy
Dimensional Fund Advisers
Dimensional Fund Advisers has big investments in some of the most environmentally destructive companies in the world, including tropical logging companies, beef producers, and the world’s largest palm oil growers and traders.
Urge Dimensional to adopt a No Deforestation Policy
Dimensional was the first large US investment firm to explicitly remove palm oil producers from its sustainability funds – so we know they are aware of the issues. But Dimensional still has huge exposure to companies like Hormel, Resolute Forest Products, Posco, and JBS, the major the Brazilian beef trader. In order to take responsibility, Dimensional should immediately implement a robust forest policy across all its investment products.
Given the high risk of illegal activity, money laundering, environmental violations, and human rights abuses associated with deforestation, Dimensional should employ heightened due diligence procedures and eliminate the most egregious and recalcitrant companies from all of its portfolios.
Tell Dimensional to adopt a No Deforestation Policy!
If they take appropriate action, large mutual funds companies can move the entire market and play a crucial role in averting catastrophic climate outcomes, and instead finance the transition to a livable planet. But they won’t do it without pressure from us.
Urge Dimensional to adopt a No Deforestation Policy!
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To:
Dimensional Fund Advisers
From:
[Your Name]
Dear Fund Manager,
Massive deforestation to clear land for palm oil, pulp and paper, soy, rubber, timber and cattle is responsible for almost one quarter of all global greenhouse gas emissions, as well as an epidemic of land conflicts and widespread abuses of the rights of indigenous peoples. As an investment firm that holds millions of dollars in shares in the agribusiness companies most responsible for devastating our rainforests, these issues expose you and your clients to a host of material risks.
Environmental and human rights impacts – and climate impacts above all – are increasingly recognized to drive material risks to investment. Awareness of these risks is growing quickly within the financial sector – and now is the time for you to get on board.
Leading responsible investment firms have begun to develop comprehensive policies to address deforestation risk, and I believe Dimensional Fund Advisors needs to do the same. It is both a moral and an economic imperative. You have tremendous power – and the world needs you to start using that power responsibly. I urge you to adopt a strong deforestation risk policy across all your portfolios.
Thank you.