by Ritvik Dutta
The Amazon Rainforest is home to about 10 million different species and comprises 2.124 million square miles of dense rainforest. Making up approximately 30% of South America’s landmass, the Amazon is a diverse ecosystem that produces roughly 20% of the world’s oxygen and has earned the esteemed nickname, “The Lungs of the Earth.” Unfortunately, however, all of the aforementioned statistics are slated to decrease due to the ever-increasing commercial damage to the essential rainforest. Due to the lack of effort made by the Brazilian government to regulate the deforestation that was taking place, the rainforest has started to receive activism from unlikely sources.
Recently, many Brazilian companies have been met with major backlash from their investors who claim that the companies are not taking any further action to reduce the ongoing devastating destruction of the Amazon Rainforest. This ravaging eradication of the world’s largest rainforest has been recently brought to mass attention due to the large surge of wildfires that started in January of 2019 and are still currently ongoing. In a study conducted by the National Institute of Space Research (INPE) in 2019, it was determined that between July 2018 and July 2019, 3800 square miles of rainforest were removed, the highest amount of rainforest destroyed in a span of 12 months since 2008. This statistic is directly influenced by the incumbency of Brazilian President Jair Boslonaro, who was elected into office in October 2018. During his regime, he has continually rejected foreign aid meant to reduce the rate of deforestation. Even today, he continues to avoid the diplomatic pressure exerted by foreign powers, which stem from late 2019.
Back in September 2019, a board of 230 investors came together to urge the Brazilian government and companies to take action on the forest fires. Of those 230, Storebrand, AP7, KLP, DNB Asset Management, Robeco, Nordea Asset Management, and LGIM were recently interviewed by the Thomson Reuters Foundation. In these interviews, the heads of the companies came to an agreement that they would push divestment of Brazilian companies if they do not start to make progress. More specifically, LGIM is pushing Brazilian meatpacking companies like JBS for “robust climate targets and land-use policies, with inaction potentially leading to voting sanctions and targeted divestments,” said Yasmine Svan, senior sustainability analyst at LGIM, in an email to the Thomson Reuters Foundation.
In the end, the investors’ efforts seem to be working. Some Brazillian companies like JBS have already released statements in which they promise to eliminate any current processes that threaten the further deforestation of the Amazon from their supply chain. However, the efforts of these investors are heavily constrained under the might of the Brazilian government, which looks to hold on to the Amazon Rainforest as a reservoir for natural resources.