LGIM’s updated Deforestation Policy articulates its deforestation-related approach and minimum expectations for companies in “deforestation-critical” sectors, which are defined with reference to Ceres’ Investor Guide to Deforestation and Climate Change (see Table 2) and the Deforestation-Free Finance Guidance, and high-risk countries. Companies that fail to meet LGIM’s minimum expectations to have both a deforestation policy and program, as determined by Sustainalytics (see FN25), should expect a vote against the re-election of their board chair.
The policy includes a laundry list of best practice expectations that LGIM will use to evaluate companies’ deforestation policies and programs encompassing commitments and targets, corporate policy, governance, supply chain risk, social and human rights impacts, and reporting and disclosure, with reference to, e.g., the Accountability Framework and the TNFD.