What do responsible supply chains mean for nature?

Increasingly, corporate action to protect climate, forests, water, and biodiversity has begun to converge into one overarching concept: nature. Regulators, financial institutions, civil society groups, and other stakeholders are encouraging companies in all sectors to address and disclose on these interconnected risks through the nature lens. For most companies with footprints in the land sector, deforestation and ecosystem conversion drive corporate impacts on climate and nature. 

The AFi’s new Explainer supports companies in making the link between their deforestation-related goals and actions, and their work to account for and disclose on broader nature-related impacts.

Supply chain expectations are coalescing around nature 

Across the globe many core elements of nature—land, ocean, water, and atmosphere—are deteriorating, including the vital ecosystem services that underpin economies and societies. Much of this nature loss is linked to the actions of companies whose businesses involve producing, manufacturing, or selling products ranging from oil and gas to food and wood products.  

Over the past decades, governments, businesses, and other actors have taken measures to limit these risks and impacts.  Nature-related risks, impacts, and activities have therefore become more prominent in sustainability and disclosure expectations on companies. Individual supply chain companies must determine what kinds of impacts on nature are relevant to their businesses, and what actions to take to address them. In recent years, several frameworks have emerged to help companies understand these impacts, such as the Taskforce for Nature-related Financial Disclosure (TNFD) and Science-based Targets for Nature (SBTN). Subsequently, these frameworks have had their approaches integrated into disclosure platforms like CDP, as well as mandatory disclosures like European Sustainability Reporting Standard (ESRS).

Frameworks like TNFD provide companies with the means to identify the interface between their own operations and the natural world. Companies can use these tools to identify risks and opportunities to both their business and the environment, find guidance on appropriate actions to mitigate that risk, and disclose their performance to their stakeholders.  

Companies can meet nature goals through deforestation- and conversion-free supply chains 

Globally, deforestation and conversion of other ecosystems for agriculture and forestry are responsible for more than 10% of global greenhouse gas emissions and one-third of terrestrial biodiversity loss. This land use change also affects water resources and soil health, and it can have serious impacts on human rights and livelihoods. 

For most companies with footprints in the land sector, deforestation and ecosystem conversion drive corporate impacts on climate and nature. These types of companies include commodity traders, food and beverage manufactures and retailers, and producers or retailers of wood or paper products. Eliminating deforestation and conversion in their supply chains is a no-regrets action companies can take to address a root cause of many nature-related impacts. 

Read AFi’s new Explainer to learn more 

The AFi’s new Explainer provides insights into how the Accountability Framework’s guidance on commitments, action, and disclosure for deforestation- and conversion-free supply chains can support companies in setting and meeting broader land and nature related goals.

Download the Explainer