Deforestation is one of the biggest drivers of climate change, responsible for around 10 per cent of global greenhouse gas emissions. Forests are essential for storing carbon, protecting biodiversity, regulating water cycles and supporting the livelihoods of millions of people.
Yet through our pensions and investments, many of us are unwittingly funding forest destruction. Every year, around 10 million hectares of forest are lost- an area roughly the size of Portugal – as billions of pounds flow into companies and financial institutions linked to deforestation.
The good news is that a growing number of investment funds are working to reverse this trend, by financing sustainable forestry, excluding high-risk industries, and supporting nature-based solutions.
Here are three funds with forest protection at the heart of their sustainability strategy:
1. Triodos Pioneer Impact Fund
Focus: Thematic impact investing in sustainability pioneers
Why it’s good: Triodos is one of Europe’s most ethical and transparent asset managers, with a strong commitment to using finance as a force for good. Its Pioneer Impact Fund invests in small and medium-sized companies that are driving the transition to a sustainable economy, across themes like renewable energy, circular economy, sustainable food and water, and biodiversity.
Forest protection fits within this wider environmental focus, with the fund backing businesses involved in reforestation, sustainable land use, and the development of alternatives to deforestation-linked materials like conventional palm oil and soy.
It also screens out businesses involved in fossil fuels, unsustainable agriculture, and commodities that are major drivers of forest loss such as beef and palm oil from uncertified sources.
Triodos – a Good With Money ‘Good Egg’ company – also publishes detailed impact reports, allowing investors to see the real-world environmental and social outcomes of their portfolio.
Top 4 deforestation-free banks
2. Regnan Global Equity Impact Solutions Fund
Focus: Environmental and social impact, with an emphasis on “life on land”
Why it’s good: This fund is designed to deliver measurable, positive outcomes for people and the planet. It invests in companies that are actively contributing to the UN Sustainable Development Goals (SDGs) – particularly those linked to climate action, biodiversity, sustainable agriculture and the protection of ecosystems.
The portfolio includes businesses working on reforestation, regenerative farming, natural capital management and other nature-based solutions. Regnan’s proprietary impact framework helps ensure these companies are not just avoiding harm but actively helping to solve environmental challenges, including deforestation.
With a science-led approach and strong transparency, Regnan regularly reports on the real-world impact of its holdings, helping investors see how their money is making a difference.
Top 7 ethical pension funds in 2025
3. Stewart Investors Worldwide Sustainability Fund
Focus: High-quality companies in emerging markets with strong sustainability practices
Why it’s good: Stewart Investors takes a long-term, values-driven approach to sustainability, focusing on companies with strong governance and a commitment to positive environmental and social outcomes.
The fund is particularly focused on the risks of deforestation in emerging markets, where many companies operate in sectors like agriculture, materials, and consumer goods. It avoids firms with poor supply chain practices or links to destructive land use, such as unsustainable palm oil or soy production.
Instead, the team actively seeks out companies contributing to better land management, whether through regenerative agriculture, sustainable food systems, forest certification, or biodiversity conservation.
Stewart Investors also stands out for its in-depth engagement with portfolio companies, encouraging long-term thinking and improved environmental practices, especially in areas vulnerable to forest loss.
Risk warning: The value of investments can go down as well as up, and you may not get back the amount you originally invested. Past performance is not a reliable indicator of future results. This article is for informational purposes only and does not constitute financial advice. Always conduct your own research or consult a qualified financial adviser before making investment decisions.
