Deforestation: investors and corporates on the front line

To date, the initiative is structured around six thematic working groups, each co-founded with a recognized organization known for its commitment to sustainability. To support this work, a podcast series was introduced, with each episode dedicated to one of these groups. The first episode focuses on the working group devoted to “Essential Resources,” co-founded by Ecofi.

A Continuous Dialogue

The “2030 – Investing in Tomorrow” podcast seeks to create a platform for dialogue between investors and field practitioners on key transition-related topics. In this episode, Alix Roy and Bertrand Swiderski share their perspectives and experiences on deforestation.

This discussion builds on a long-standing relationship, with Ecofi being a long-term investor in Carrefour. For several years, the asset manager has played an active role through participation in shareholder meetings and through ongoing dialogue on issues such as climate, biodiversity, tax responsibility, and living wages.

“We are fortunate to have a very active dialogue, as Carrefour is always willing to meet with us, answer our questions, and engage in this process with its investors,” notes Alix Roy.

This collaborative dynamic is also reflected in growing pressure regarding deforestation-related issues.

“Through its extra-financial approach, Ecofi encourages Carrefour to address issues that require a long-term and sustainable perspective,” explains Bertrand Swiderski. “This is generally not the case with others, who often demand short-term—and sometimes extremely short-term—results, especially when it comes to customers and consumers.”

Practical Tools to Address Urgency

As part of its active engagement with stakeholders, Carrefour has developed a public platform designed to provide transparent responses to potential controversies, through a rapid-response mechanism known as “Rapid Response.”

“In the event of deforestation, for example, we can take a public position, intervene within the supply chain, and, if necessary, completely suspend sourcing from the affected area. All of these actions are made public,” explains Bertrand Swiderski.

A Transparency Tool Critical for Investors

For Ecofi, the implementation of a mechanism such as Rapid Response is essential. It not only ensures a high level of transparency but also allows investors to assess whether the company has an appropriate response framework for each controversy it faces.

The asset manager systematically places any company involved in a controversy under “quarantine.” This process relies on an internal scoring framework that classifies incidents according to several levels, based on three main criteria: the severity of the allegations, the company’s ability to respond quickly and credibly, and its degree of involvement.

“Controversy monitoring plays a central role for us, as 100% of our funds are managed according to a socially responsible investment approach (with 90% of assets labeled ISR). In practical terms, this means that a company involved in a serious controversy and lacking sufficient responsiveness exposes itself to exclusion from all our portfolios,” emphasizes Alix Roy.