Less than one fifth (19 per cent) of pension funds and providers that are members of net-zero coalitions have comprehensive policies or commitments to tackle deforestation, research from Make My Money Matter (MMMM) and Global Canopy has revealed.

The research also suggested that pension providers are not listening to members, revealing that over half (55 per cent) of savers don’t want their savings invested in companies at risk of driving deforestation, with the topic consistently ranking as the top concern among savers.

In light of the findings, MMMM and Global Canopy called on the UK pension sector to "urgently" commit to tackling deforestation, and take the necessary first steps of mapping portfolio exposure and setting effective policies on deforestation as soon as possible.

Commenting on the findings, MMMM CEO, Tony Burdon, stated: “At COP26 in Glasgow, governments and international financial institutions - including some major UK pension providers - rallied to lay out a path that would see the practice and effects of deforestation halted and reversed by the end of the decade.

“Since then, the vast majority of pension providers have failed to set credible commitments or effective policies that can help tackle deforestation.

“Deforestation is one of the worst drivers of carbon emissions globally and has immensely negative impacts on human rights, nature and biodiversity.

“Our ongoing research also shows that it is the topic savers care about the most. That’s why MMMM calls on the UK pensions industry - all £3trn of it - to sit up and listen to the views of its members and urgently tackle deforestation. That way, we can build a world that is fit for retirement.”

Adding to this, Global Canopy executive director, Niki Mardas, warned that time is running out, arguing that "if we’re serious about meeting our Paris climate goals our window of opportunity is closing fast".

"And forests are a key part of the solution. Destroying them both adds to climate change and makes it more difficult to tackle it," Mardas continued.

“Finance is key to driving change and pension funds - as the largest group of asset owners in the world - have real power to take a lead. Currently our data shows too many are ignoring the deforestation their investments cause.

“Inaction on deforestation is a risk to the planet, a risk to life and a risk to business. We know that net zero policies without action on deforestation will not work and regulations and global demand for action will intensify. The best time for pension funds to take deforestation seriously was yesterday, the second-best time is now.”

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