Investors & companies put pressure on Brazilian Govt. over deforestation of Amazon & related fires

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4 September 2019

Companies & investors put pressure on Brazilian Govt. over Amazon fires

Author: Dom Phillips, The Guardian (UK)

"Corporations pile pressure on Brazil over Amazon fires", 30 August 2019

Financial pressure is growing on Brazil over fires in the Amazon and the far-right president's belligerent response to them.

Asset managers, pension funds and companies have issued warnings, halted deals and stopped purchases of government bonds.

The US clothing company VF Corporation, which is behind brands including Timberland, Kipling bags and The North Face, has suspended Brazilian leather purchases, and Norway's two biggest investors have warned global companies against contributing to environmental damage...

...The emerging market debt team at Scandinavia’s Nordea Asset Management quarantined Brazilian government bonds, meaning they would no longer buy but only sell...

...Brazilian financial specialists raised concerns about what might come next. “More and more investors look beyond quarterly results and concern themselves with how sustainably companies operate,” said Mauro Cunha, the president of the Brazilian Association of Capital Market Investors. “A negative perception of Brazil in this area could even prompt big international funds to disinvest, impacting on the price of Brazilian assets.”

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30 August 2019

Norwegian investors and pension funds reach out to companies to halt environmental destruction in Brazil's Amazon

Author: Bloomberg

“Norway’s Biggest Funds Tell Companies to Halt Damage of Amazon”, 27th August 2019

…Storebrand ASA and pension fund, KLP, are now reaching out to companies and intensifying their research to map out who’s responsible for any potential damage. Storebrand said that the fires in the Amazon are the latest signs of how critical deforestation has become, where clearing of land for palm oil, cattle, soy and timber are the greatest drivers…“We have an ambition to exit companies that contribute to deforestation by 2025” should a dialog not achieve the desired changes, Matthew Smith, head of sustainable investments at Storebrand Asset Management, said in an interview. The fires raging through Amazon were called an “international crisis” by French President Emmanuel Macron. Norway’s government has also suspended its contributions to a rain forest preservation fund, claiming Brazil hasn’t lived up to its commitments…Pension fund KLP said in a statement late Monday that its reaching out to companies and calling on other large investors and banks to exert pressure on companies such as Cargill Inc., Bunge Ltd. and Archer-Daniels-Midland Co. “We have engaged companies which undertake significant trade in agricultural products from Brazil because we want rapid dialogues and concrete actions given this extremely serious situation,” said Jeanett Bergan, head of responsible investment at KLP…


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