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Tue, 05/25/2010 - 13:00 | by admin
May 25, 2010
Domini Endorses Forest Footprint Disclosure Project
Domini Social Investments has endorsed the Forest Footprint Disclosure Project, a nonprofit organization that helps investors assess the impact of companies on the world’s forests.
The Forest Footprint Disclosure Project (FFD Project) is a new initiative supported by the British government and modeled on the Carbon Disclosure Project, which questions companies on their greenhouse gas emissions. The FFD sends an annual survey to companies with exposure to five forest risk commodities: beef or leather, palm, soy, timber and bio-fuel. The survey, sent on behalf of investors managing more than $4 trillion, seeks information about how companies are managing their impact on forests.
"Forest Footprint Disclosure is delighted to receive support from Domini as another important investor recognizes the significant influence on climate change mitigation that comes from protecting standing forests through developing a sustainable supply chain for key commodities,” said Christoph Harwood on behalf of the FFD Project.
Forests are rapidly declining at a rate of 55 football fields per minute, according to the United Nations. Only 20% of the world’s original forests remain undisturbed.
Amy Domini, Founder and CEO of Domini Social Investments, said, "Armed with data, investors can play a leading role in repairing the unconscionable damage we’ve done to our planet. Domini is pleased to endorse the work of the Forest Footprint Disclosure Project and we look forward to working with the FFD Project to increase the participation of U.S. companies. We strongly encourage other investors to join us in this effort."
Domini believes that it is essential for companies with significant exposure to deforestation to map and mitigate their impact on these critical ecosystems. Domini has taken a leadership position in addressing forestry issues with our mutual fund holdings through our investment standards, direct shareholder engagement, and proxy voting. Since 2007, Domini has been a member of the Boreal Leadership Council, an organization devoted to protecting one of the world’s largest forest ecosystems.
Deforestation and Climate Change
The Stern Review on the Economics of Climate Change states greenhouse gas emissions from deforestation are greater than emissions from the global transportation sector. Forests store extensive amounts of carbon, critical to mitigating the effects of climate change. Forests store the equivalent of 175 years of global fossil fuel emissions and forest loss is responsible for 20% to 25% of total annual carbon dioxide emissions globally. Deforestation has serious implications for biodiversity and human rights as well.
About the Forest Footprint Disclosure Project
The Forest Footprint Disclosure Project asks companies to disclose how their operations and supply chains are impacting forests worldwide, and what is being done to manage those impacts responsibly. The purpose of the survey is to provide companies and investors with a better understanding of the company’s ecological impact, and how the changing climate and new regulatory frameworks could affect access to resources and the cost of doing business in the long term.
The disclosure information will be reported annually, enabling investors to identify the sustainable businesses of the future as well as possible risks related to a company’s forest footprint. The Project published the results of its first global survey in February.