【意見交流園地】Karen Ho / 【Idea Exchange】Karen Ho
What is happening?
The fire raging across Brazil’s Amazon has become a global concern this week, it was being called as an “international crisis” by French President Emmanuel Macron. The Amazon is known as the “Lungs of the planet”, and everyone on the planet benefits from the health of the Amazon as its trees take in carbon dioxide and release oxygen. It is also the largest, most diverse tropical rainforest on mother Earth and is home to more than half the world’s species of plants and animals.
What would be potential root cause?
Climate change (dry weather, wind and heat), accelerating deforestation, palm oil, cattle, soy and timber are known to be the greatest drivers. Deforestation rates reached startling highs in July. People cut down patches of forest, allow the area to dry out, then burn the remains and might also set fires to replenish the soil.
How is it related to Sustainable Finance?
Norway’s biggest investors, with combined assets under management of USD 170 Billion, Storebrand ASA and pension fund KLP are mapping out which companies may be responsible for any potential damage for the fire. They are talking to companies and intensifying their research to map out who’s responsible for any potential damage. The Swedish government is also reaching out to its pension funds to ensure their investments aren’t contributing to environmental damage in the Amazon.
How is it related to me?
If you are the investors of companies which could directly or indirectly contributing to the forest fire, you should be aware of potential risk of your investment as the biggest investors are going to exit their positions on those companies and it would affect their cost of finance and share price.
Global customers, banks and investors are also giving pressures to companies which might not be sourcing sustainably. Take a look at this interactive report to understand who are sourcing sustainable palm oil so you can make a wise decision when you buy any of your products from them:
Climate change is FoE’s major advocacy and we really care about Amazon! We have the following four climate related recommendations and works to combat climate change. We look forward to your continued support and participation.
- We urge the Brazilian Government to actively tackle the disaster. Countries around the world should adopt a sustainable development model to stop deforestation in the Amazon rainforest.
- We urge the Hong Kong Government to increase the green ratio in Hong Kong and create a local “carbon sink”.
- We have organised Tree Planting Challenge since 2005. More than 9,300 participants have successfully climbed and planted 83,000 native saplings in various country parks. We are now preparing for “Tree Planting Challenge 2020”, which will be held in Tai Lam Country Park next spring.
- We have been delivering professional training to the local stakeholders under the “Jockey Club Smart City Tree Management Project”. In the coming year, we will be arranging more secondary school talks as well as community seminars to enhance their knowledge in trees.
Please refer to the link below to view our press release.