State Street Needs a No Deforestation Policy
State Street is one of the largest and most influential investment firms in the world. Unlike many large investors, State Street actually has a number of fossil free funds – which shows that State Street understands the existential threat of climate change.
Yet, even in its fossil-free funds, and across its portfolios, State Street still has huge investments in companies like JBS, Sime Darby, Posco and Mitsubishi that grow and trade palm oil, beef, and rubber, and others like Tesco and Carrefour that use these commodities in their products but have failed to eliminate deforestation from their operations. This means State Street has a key role to play in voting for No Deforestation policies at these companies and engaging with company management to make sure these policies are implemented.
Tell State Street to improve its climate game by adopting a No Deforestation Policy!
If they take appropriate action, large fund 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 State Street to adopt a No Deforestation Policy!
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 State Street 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.