Universally regarded as a uniquely important cog in the global wheel of environmental preservation the Amazon rainforest would appear to be again coming under the assertive scrutiny of environment watchers over what is believed to be a fresh surge of abuse of the area emanating from Brazil.
This week a report surfaced in the region of a group of European investment firms from some of the world’s most environmentally sensitive countries that have sent a joint letter to Brazilian Ambas-sadors in their respective countries to make the point regarding their unease over what they believe is yet another aggressive surge of deforestation in the Amazon.
The front runner in the initiative to communicate the collective unease to Brasilia has been named as the Norwegian Asset Management firm, Store-brand, which reportedly secured the signatures of 29 other companies including Legal Investment Management Ltd, Sumitomo Mitsui Trust Asset Management and NN Investment Partners. The companies canvassing the Brazilian government on the issue reportedly, together, have US$3.75 trillion in assets under their management.
The letter reportedly asserting that the “dismantling of environmental and human rights policies are creating widespread uncertainty about the conditions for investing in or providing financial services to Brazil” was delivered to embassies of the South American powerhouse nation in Norway, Sweden, France, Denmark, the Netherlands, the United States and the United Kingdom earlier this week. In reportedly blunt requests that talks be opened on the matter the investment firms are sending a signal that they are taking what they believe as a worrying deforestation surge in the Amazon seriously.
Seemingly determined to put optimum pressure on Brazil to move to push back deforestation in the Amazon the powerful asset managers reportedly stopped just short of threatening divestment, asserting that they were concerned that deforestation and violation of indigenous peoples’ rights could pose risks to clients and the companies in which they invest.
“Considering increasing deforestation rates in Brazil, we are concerned that companies exposed to potential deforestation in their Brazilian operations and supply chains will face increasing difficulty accessing international markets,” the letter reportedly says.
Quite how the missive will ‘go down’ with Bra-zil’s President, Jair Bolsonaro is unclear given his pledge upon taking office last year to render the riches of the Amazon more accessible. The Brazilian President also reportedly has a ‘beef’ about large tracts of Ama-zon territory being owned by indigenous Indians. On the whole European governments do not applaud Bolsonaro’s record on the environment and their respective legislatures have reportedly indicated their intention to block a ratification vote to facilitate a free-trade deal between the European Union and the Mercosur customs union that includes Brazil, which was signed only recently following two decades of negotiations.
What now appears to be a brewing major confrontation over the issue is reflective of the growing importance being attached to the Amazon rainforest at a time when the portents for a more globally responsible attitude to the environment is not securing the traction that might have been expected from some developed countries.
The letter to the Brazilian authorities has reportedly drawn attention to Brazil’s parliamentary push to legalize the occupation of public lands and to allow mining in indigenous territories.
Deforestation in the Amazon reportedly grew by 22 per cent between January and May this year compared with the same period of the last year.
