Future Group joins fight against deforestation

Future Group has joined a global investor push urging the European Commission to maintain the agreed implementation timetable for the EU Deforestation Regulation (EUDR), arguing that regulatory certainty will be critical for investors managing long-term environmental and financial risks.

The superannuation fund is among institutional investors and networks representing approximately US$6.3 trillion in assets under management calling for the regulation to be fully implemented from December 2026, without reopening or renegotiating the legislation.

The investors said deforestation represented a systemic financial risk, with exposure creating physical, regulatory, operational and reputational risks for companies and their investors.

The letter to the European Commission said these risks were increasingly evident across agricultural landscapes through prolonged droughts, changing rainfall patterns, soil degradation and declining ecosystem resilience, threatening global commodity supply chains.

Future Group and other signatories backed the EUDR as a framework for establishing a harmonised baseline for due diligence and supply chain traceability, while acknowledging concerns around implementation costs and readiness in producing countries.

The investors argued those challenges should be addressed through practical guidance, technical assistance and capacity building rather than changes to the regulation.

"Reopening or delaying the regulation would create further risks and uncertainty for businesses and investors, undermine the level playing field the regulation is intended to establish and damage EU's reputation for stable, predictable and rules-based policymaking," the letter said.

The group also urged the commission to provide consistent interpretation and application across European Union member states to prevent regulatory fragmentation and unnecessary costs for businesses operating across jurisdictions.

The investors welcomed the commission's decision to address changes to the regulation's product scope through a delegated act rather than reopening the legislative process, buy called for the final act to be published as soon as possible.

They warned that narrowing the scope, including the proposed exclusion of leather, could weaken the effectiveness of the framework and make it harder for investors to assess deforestation exposure across global supply chains.

The investors said clear guidance and predictable implementation would help companies invest in traceability and responsible sourcing while giving long-term investors greater confidence in capital allocation decisions.