When you purchase a new car, you may not realise that the leather on your seats may be driving deforestation in the Amazon, or the rubber in your tyres could be forcing orangutans closer to extinction. The deforestation risks of automotive supply chains have taken a back seat in public consciousness, and as a result rubber and leather have sat close to the bottom of the automotive industry’s Environmental, Social and Governance (ESG) to-do list. However, there are signs that with increasing regulation and public awareness these issues are gaining traction. At Columbia Threadneedle Investments we have been engaging with car seat manufacturers, tyre companies and automobile manufacturers to drive progress on deforestation.
Interested in learning more?
Read more about the impact of automotive supply chains on deforestation and our engagement with companies.