The UK's Department for the Environment, Forestry and Rural Affairs (Defra) has opened a consultation seeking to introduce a due diligence requirement for companies whose supply chains may be contributing to deforestation.
Opportunity to engage with Brazilian authorities to increase enforcement to curb deforestation in the Amazon.
Deforestation in the Brazilian Amazon has reportedly increased by more than 50% in the first quarter of 2020, compared to the same period in 2019. Investors are concerned about the reputational, operational and legal risks that this may bring to invested companies in Brazil. They also consider that higher environmental and social risks can impact their position on Brazilian sovereign bonds.
After two initial meetings with Brazilian authorities,,investors need to monitor the developments in Brazil to assess their exposure to financial risks arising from deforestation.
- Public Policy