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Public Engagement Report Q1 2023

EOS Insight
3 May 2023 |
The Q1 Public Engagement Report from EOS at Federated Hermes takes an in-depth look at the impact that cattle ranching is having on the Amazon rainforest. Plus, how EOS engages with companies on sexual harassment in the workplace, and why climate accounting is under scrutiny this voting season.
EOS Public Engagement Report Q1 2023

Fast reading

  • Cattle ranching remains the main driver of deforestation in the Amazon with land cleared for grazing
  • Why companies should be accounting for climate risk
  • Engaging on gender equity and eliminating sexual harassment from workplaces

The Amazon rainforest represents nearly a third of all the tropical rainforest remaining on Earth. But deforestation has increased in recent years, partly due to the weakening of policies and limited law enforcement. Over 70% of this deforestation is thought to be accounted for by cattle ranching, with land cleared for grazing. The production of soybeans, primarily for animal feed, is also a significant contributor to deforestation and the associated biodiversity loss.

In EOS’s Q1 2023 Public Engagement Report, Sonya Likhtman and Joanne Beatty examine the risks this poses, and explain how we engage with companies on the sourcing of beef and soy. We expect companies to commit to deforestation-free and conversion-free production and sourcing by 2025. We also encourage a commitment to achieving full traceability of commodities to source, across all tiers of the supply chain. This includes setting clear expectations for suppliers and creating mechanisms to enforce them.

Also in this issue, Justin Bazalgette looks at how companies account for climate risk in their balance sheet, and why this sometimes falls short of investor expectations. Companies should be disclosing how climate change and decarbonisation commitments are being captured in their accounting assumptions and judgements. Are their accounts aligned with a 1.5°C world? Will the company be materially impacted by climate change risks? “The aim is to challenge the disconnect between a company making bold net-zero pledges and the business-as-usual reporting still found in some company accounts,” he says.

Finally, we explore how sexual harassment and discrimination at work can lead to litigation, fines or settlements, and damage a company’s reputation. Zoe de Spoelberch and Emily DeMasi set out our approach to engaging on gender equity and eliminating sexual harassment from workplaces.

To find out more, read the EOS Q1 Public Engagement Report.

EOS Public Engagement Report Q1 2023

EOS Public Engagement Report Q1 2023

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