24 May 2022
New research released from the Accountability Framework initiative (AFi) and CDP shows that companies cannot afford any more delay in tackling deforestation across supply chains, with forest-related risks identified at almost $80 billion by 211 disclosing companies.
This report, ‘From commitments to action at scale: critical steps to achieve deforestation-free supply chains’ assesses company disclosures to understand how they are working to mitigate risks within their supply chain, using data from CDP’s 2021 forests questionnaire, which is aligned with the Accountability Framework’s Core Principles and the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. It includes disclosures from 675 companies that produce or source at least one of the seven commodities responsible for most commodity-related deforestation: timber products (491 companies disclosing), palm oil (233), cattle products (126), soy (154), rubber (51), cocoa (54) and coffee (27).
Key report findings:
- Deforestation poses a massive financial risk to companies. 211 disclosing companies identified over US$79.2 billion of forest-related risks; the cost of responding to identified risks was US$6.7 billion.
- Only 36% of disclosing companies (245/675) have public company-wide no-deforestation or no-ecosystem conversion policies. Only 13% of companies have commitments to no-deforestation/no-conversion that are aligned with good practice.
- The majority of companies do not have sufficient traceability (77%) or monitoring systems (74%) throughout their supply chains to implement commitments made or assess progress against them.
Read the full press release here.
Watch the report launch webinar here.
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Read the report here.