Changing business as usual: How sustainable investment promotes sustainable land use
By Natcha Tulyasuwan, Sustainable Landscapes Finance Specialist, USAID Green Invest Asia & Jim Jarve, Strategic Advisor, USAID Green Invest Asia
Sustainable investments make good business sense. Investing in sustainable production reduces the risk of supply chain disruptions. Incorporating environmental, social and governance (ESG) factors into investment decisions contributes to improved corporate financial performance and risk-adjusted returns on medium to long term.
- Pioneering companies and financial institutions are taking a lead in sustainable agriculture and forestry investment, yet progress has been slow and their lead is not being followed.
- USAID Green Invest Asia works with mid-growth enterprises and links them with investors to scale up profitable and sustainable agriculture and forestry practices.
- Businesses and financial institutions are crucial to promoting sustainable landscapes, including reduction in greenhouse gas emissions and commodity-driven deforestation.
At the AVPN Conference 2018 in Singapore, USAID Green Invest Asia participated in a panel on Social Investment in Forest Ecosystem Services. The discussion emphasized the role of businesses and investors in deforestation-free commodities and supply chains by scaling up regional investments in sustainable practices.
Commodity-driven deforestation remains a critical challenge for forestry and agri-businesses looking to improve their supply chains. While some leading enterprises are improving practices, a 2016 report from the Global Canopy Programme found that the rate of progress by most companies, including those in Asia, is inadequate to reach the 2020 targets of removing deforestation from global commodity supply chains.
Companies committed to eliminating commodity-driven deforestation have called for more ESG investments into sustainable, low-carbon agricultural and forestry practices. However, while a number of premier financial institutions paving the way, uptake has been slow.
Read the full article on AVPN's website here.
Pact is proud to implement USAID Green Invest Asia.