Investors Managing $19 Trillion Intensified Deforestation Engagement in 2025

Despite a difficult year for climate investor coalitions, PRI's Spring deforestation stewardship initiative grew to 240 investors managing over $19 trillion in assets in 2025, with 96 actively engaging investee companies on material deforestation and nature-loss risks. The Nature Conservancy and PRI report that investor focus has shifted from long-term pledges to demanding demonstrable delivery on zero-deforestation commitments as expiry deadlines approach.

PRI Spring, which addresses systemic risks from deforestation through collaborative investor engagement with companies, added members in 2025 despite disruptions affecting other climate coalitions. The initiative's 240 investors are increasingly using tailored company-specific engagement approaches beyond standardised expectations, incorporating expertise from academia, civil society and sector specialists. A framework developed by The Nature Conservancy, PRI and partners for engagement with cattle, soy and palm oil supply chain companies centres on three fundamentals: clarity and comprehensiveness of targets, credibility of implementation plans, and decision-usefulness of disclosure including traceability data and grievance systems.

Deforestation risk has become a core material financial concern as investors develop deeper understanding of how forest loss disrupts rainfall, constrains agricultural productivity and undermines water and energy security. Nature Communications research estimates billions of dollars in business value at risk from rainfall disruption linked to Amazon deforestation. For Indian companies in sectors including palm oil, soy, cattle products and paper with supply chain exposure to deforestation-risk geographies, investor engagement on zero-deforestation delivery is intensifying. India's role as a major buyer and user of forest-risk commodities makes domestic corporate performance on deforestation increasingly relevant to international capital market relationships.

Three developments expected to shape investor deforestation engagement in 2026 include increasing integration across standards as TNFD adoption surpasses 620 organisations representing $20 trillion in assets and planned ISSB guidance on TNFD alignment advances, the hardwiring of nature considerations into enterprise and investment decision-making frameworks, and a broader pipeline of financing opportunities including catalytic capital structures for sustainable agriculture in major producer countries such as Brazil. Investors are increasingly moving from exclusion strategies to transition-focused engagement, supporting credible transition plans rather than withdrawing capital from deforestation-exposed companies.

Key figure — $19 trillion in assets managed by PRI Spring investors