Greenpeace: Swiss pension funds complicit in deforestation

Two thirds of tropical deforestation is driven by the production of a handful of commodities including palm oil, soy, timber, paper and pulp, beef, and leather. Copyright 2019 The Associated Press. All Rights Reserved.

A Greenpeace Switzerland report claims that 5% of Swiss pensions are invested in companies that contribute to deforestation.

The report, published on Thursday, estimates that Swiss pension funds contribute around CHF60 billion ($61 billion) to companies that are heavily involved in the destruction of tropical forests in South America, Africa and Asia.

This is about 5% of total funds managed by Swiss pension funds, which Greenpeace says is a “conservative estimate” given the analysis only assessed equity investments. It didn’t include the “billions” granted to companies in the form of loans.

The study is based on the Forest500 ranking, which analyses 350 companies for their commitment and policies on ending deforestation. According to Forest500, two thirds of tropical deforestation is driven by the production of a handful of commodities including palm oil, soy, timber, paper and pulp, beef, and leather.

“Instead of using the occupational pensions of the insured to really prepare for the future, the pension funds participate in the destruction of forests and therefore in the destruction of the living conditions of all of us,” said Peter Haberstich, a finance expert at Greenpeace Switzerland.

There are around 1,500 pension funds in Switzerland managing about CHF1.2 trillion, which makes them some of the most important investors in the country.

Greenpeace Switzerland is urging pension funds to use their shareholder rights to change company policies. It calls on the funds to develop more concrete strategy on how they plan to contribute to goals in the Paris Climate Agreement by mid-2023.

In a response to Swiss public television RTS, Yves Marie Hostettler, head of the Swiss pension fund umbrella organisation, assured that progressExternal link had been made to invest more responsibly over the last few years.