NZAOA calls for urgent action to tackle deforestation

Written by Adam Cadle

18/06/2025

The Net-Zero Asset Owner Alliance (NZAOA) is calling on investors to ensure their portfolios aren’t supporting or enabling deforestation.

In a report published today, the NZAOA said investors should make certain they have a firm grasp of their exposure to deforestation and take steps to “phase out” any harms to forests stemming from their investments in commodities such as beef, cocoa and palm oil by 2030.

Furthermore, the NZAOA said investors are exposed to transition and physical risks via their investments, services and loans to companies with so-called forest-risk commodities in their operations and supply chains.

Due to their longer-term investment horizons, asset owners depend on the long-term health and stability of economies and financial markets, NZAOA said. Deforestation threatens both and with it, people’s access to insurance and retirement income, it concluded.

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