Investors may exit consumer goods firms over EU deforestation law

As a new European Union zero-tolerance deforestation law looms, several major investors told Reuters they are concerned about their exposure to the issue, with some saying they could quit consumer goods makers with “risky” supply chains.

The EU agreed in December a new rule to prevent companies from selling into its market coffee, beef, soy, rubber, palm oil and other commodities linked to deforestation. Companies must prove their supply chains are not contributing to the destruction of forests or be fined up to 4 percent of their turnover in an EU member state.