Firms with over $8.7trn (£6.4trn) in assets under management have committed to tackling deforestation.

The commitment was part of a package of deforestation announcements announced at the COP26 conference this morning.

The asset managers include Aviva, Axa, JGP Asset Management, Impax Asset Management, Schroders and Storebrand Asset Management.

The COP26 conference heard that ending deforestation and implementing natural climate solutions could provide a third of the solution to achieving the Paris climate target, help halt and reverse biodiversity loss, and support human rights and food security.

Deforestation is driven by production processes for palm oil, soy, cattle products, pulp and paper.

In an announcement the asset managers said tackling deforestation was crucial to meeting their own net zero targets.

The firms will engage with companies exposed to deforestation risks using active ownership and ongoing stewardship to drive actions to eliminate deforestation across supply chains. They also said they will increase investments in nature-based solutions.

Amanda Blanc, group CEO of Aviva, said: “Protecting our forests and their biodiversity is fundamental to the fight against climate change. Financial institutions have a pivotal role, using our influence on the companies we invest in to encourage and ensure best practice. Aviva is proud to sign the commitment to end deforestation, helping build a critical mass for change. Together we can reduce risk to the planet and the financial markets, and capitalise on the opportunities that come from more sustainable investment.”

The UN Principles for Responsible investment said the commitment from the asset managers builds on the work already done by asset managers to address ESG risks.

Fiona Reynolds, CEO of the UN Principles for Responsible Investment, said: “This new joined-up approach builds on a considerable foundation of investor engagement with companies, regulators and policy-makers to address deforestation impacts. Taken together with other announcements at COP 26 regarding efforts to mobilise new private capital flows for forest protection, restoration, and sustainable land management, and to reverse nature loss, this marks a step-change in financial sector focus on the crucial role of nature in achieving net zero targets and keeping the 1.5°C temperature target within reach.”

The majority of the firms who made the deforestation commitment as also members of the UN Principles for Responsible Investment and its Sustainable Commodities Practitioners’ Group.

A roadmap with a set of actions and dates for the asset managers to achieve the goals of the commitment is expected to be announced at the COP26 conference tomorrow.