The Institutional Investors Group on Climate Change (IIGCC) published new guidance on integrating deforestation into net zero strategies and launched the Deforestation Investor Group (DIG) to support investors in mitigating financial risk exposure linked to deforestation, land conversion and associated human rights risks, aligned with the Global Stocktake goal to halt and reverse deforestation and forest degradation by 2030. The guidance aligns with the Net Zero Investment Framework (NZIF 2.0) and sets out actionable steps across all six NZIF component areas, with tailored recommendations by asset class, consolidating existing principles, tools and best practices. It highlights deforestation as responsible for approximately 11% of global carbon emissions and as a source of material financial, regulatory and litigation risks for exposed investors, and recommends five priority actions covering portfolio risk assessment, adopting a deforestation policy, embedding deforestation considerations in investment decisions, addressing material exposure through stewardship, and advocating for regulation and policies that curb deforestation and scale deforestation- and conversion-free supply chains. DIG builds on Finance Sector Deforestation Action, which convened over 30 financial institutions between 2021 and 2025, and offers participating investors quarterly meetings and a platform to share experience and scale approaches. A public webinar is scheduled for 3 March to introduce the guidance, share four investor case studies and outline DIG’s programme of work.
Institutional Investors Group for Climate Change 2026-01-28
Institutional Investors Group on Climate Change publishes guidance on integrating deforestation into net zero strategies and launches Deforestation Investor Group
The Institutional Investors Group on Climate Change (IIGCC) released guidance on integrating deforestation into net zero strategies and launched the Deforestation Investor Group (DIG) to help investors mitigate financial risks linked to deforestation, aligning with the Global Stocktake goal to halt deforestation by 2030. Part of the Net Zero Investment Framework 2.0, the guidance outlines steps for investors, emphasizing deforestation's role in carbon emissions and associated risks, and recommends actions such as portfolio risk assessment and policy advocacy.