Written by:
Future Group
8 September 2026
Deforestation is a systemic risk for long-term investors. It accelerates climate change and biodiversity loss, disrupts water systems and agricultural production, and creates material risks for companies and the global supply chains they rely on.
Future Group has joined 42 investors and investor networks, representing approximately US$6.3 trillion in assets under management, in calling for the full, consistent and timely implementation of the European Union Deforestation Regulation (EUDR).
The joint investor statement, coordinated by the Principles for Responsible Investment (PRI), calls on the European Commission to maintain the EUDR’s integrity and agreed implementation timelines, beginning in December 2026.
Why the EUDR matters
The EUDR is designed to ensure certain products placed on, sold within or exported from the EU are deforestation-free and produced in line with relevant laws in their country of origin. It covers commodities associated with deforestation and forest degradation, including cattle, cocoa, coffee, palm oil, rubber, soy and wood.
For investors, the case for action is clear. Exposure to deforestation can create physical, regulatory, operational and reputational risks for companies. It can also affect the resilience of portfoliosand the long-term value investors seek to protect.
Voluntary corporate commitments have an important role to play, but they are not enough on their own to address a challenge of this scale. Clear, credible and consistently applied regulation can help create the common baseline needed for companies to manage deforestation risk across global supply chains.
Certainty supports action
The statement recognises that businesses and producers are managing genuine implementation challenges, including traceability requirements, administrative burden and readiness across supply chains. These challenges should be addressed through practical guidance, proportionate implementation measures, technical assistance and capacity-building support.
But reopening or further delaying the Regulation would create more uncertainty. It would make it harder for companies and investors to plan, could undermine the level playing field the EUDR is intended to establish, and risk slowing investment in the systems and technologies that support traceability and responsible sourcing.
The investor statement highlights three priorities:
Avoid reopening or renegotiating the legislative text.
Maintain the agreed implementation timelines and provide a predictable policy pathway.
Support legal certainty through clear, consistent and harmonised interpretation across EU Member States.
Stewardship on systemic risks
Deforestation is a systemic risk because it’s closely linked to climate change, biodiversity loss, food and commodity supply chains, and the long-term resilience of economies and markets. Investors have a role to play in supporting policy settings that help companies identify, manage and reduce their exposure to these kinds of systemic risks.
By joining this call, Future Group is supporting a stable and effective framework for tackling deforestation in global supply chains. Consistent implementation of the EUDR can help reward companies that have invested in transparency and responsible sourcing, while increasing accountability for those that have not taken sufficient action.
Read the full joint investor statement.
