The IPDD is an initiative established jointly by investors in summer 2020. IPDD is supported by 43 investors who in November 2020 managed assets totalling 6 trillion US dollars.
“The disappearance of rainforests has a huge impact on climate change and ecosystems. The aim of the initiative is to establish a dialogue to stop deforestation. The IPDD seeks to ensure long-term financial sustainability of investments in the countries where the investments are located by promoting sustainable land use, forest management and respect for human rights,” says Juulia Kangas, ESG specialist in portfolio management at OP Asset Management.
As part of the advocacy work, investors enter into a dialogue with the public agencies and various organisations in the destination countries. The project will work with key stakeholders to encourage the adoption and implementation of a regulatory framework that will ensure the protection of natural resources and respect for human rights. At the moment, the focus is on Brazil.
“It will continue to be in the interests of investors to invest extensively in government bonds and to help prove how economic development and environmental protection need not be mutually exclusive,” Juulia Kangas says.
Through the initiative, investors call on the Brazilian Government to show a clear commitment to eliminating deforestation and protecting the rights of indigenous peoples. Read more about the initiative here.