AFi urges accelerated progress on Forest Action Day

Despite pledges to end deforestation and natural ecosystem conversion this year, companies’ agriculture and forestry commodity supply chains continue to drive these environmental and social impacts. Today, delegates at the UN climate conference aim to change that.

During COP30 Forest Action Day, the AFi and its Coalition member organisations are joining partners from civil society, government, and the private sector for events, activations, and announcements aimed at scaling solutions to make forests a central part of global climate action.

Because deforestation and conversion make up at least half of greenhouse gas (GHG) emissions associated with agricultural and forestry production, halting this land use change needs to be a priority for corporate climate action. The Accountability Framework and initiatives that have aligned with it, like SBTi, offer guidance to support companies with eliminating land use change from commodity production and sourcing. 

To demonstrate the impact that deforestation- and conversion-free supply chains can have on climate goals, the AFi worked with consultancy Ad Astra to model different company interventions. In all three scenarios, addressing deforestation and conversion was the most effective way to reduce forest, land, and agriculture sector GHG emissions.

A roadmap for companies

As companies become increasingly aware of the need to address land use change in order to meet climate goals, timely and practical guidance on how to achieve deforestation- and conversion- free supply chains is essential. To help companies take rapid and decisive steps to protect forests, ecosystems, and the people who depend on them, the AFi has set a clear post-2025 roadmap for company commitments and progress towards achieving supply chains free of deforestation and ecosystem conversion.

Building from the AFi Coalition statement issued in May, the initiative will publish the Accountability Framework Operational Guidance on Commitments and Progress Pathways in December. Adding detail and nuance to the Framework’s guidance on setting commitments, it outlines how companies can set credible goals, and targets, define appropriate milestones and action plans to achieve them, and characterise progress towards and fulfilment of commitments.

The AFi has also strengthened its guidance for companies on taking an integrated approach to upholding the rights of Indigenous Peoples, local communities, and workers. The revised Operational Guidance on Respecting the Rights of Indigenous Peoples and Local Communities offers a comprehensive resource to support companies in meeting their obligations under international law with respect to these groups. Additionally, revisions to the Operational Guidance on Workers’ Rights provide tailored guidance for companies based on their positions in the supply chain, making clear which expectations apply to them.

The role of responsible finance

Beyond company commitments, the capital allocation decisions financial institutions take through their lending, investment, and underwriting choices help to set the rules for global supply chains.

To support the transition to responsible agricultural and forestry production and trade, financial institutions should strengthen stewardship of their portfolios in line with the Accountability Framework. Additionally, financial institutions can use the Framework and aligned resources to develop practical means to assess and manage deforestation, conversion, and human rights risks across their investment and lending portfolios.

For example, the AFi recently partnered with the Tropical Forest Alliance on a new report and due diligence workbook for the finance sector to improve due diligence in deforestation-linked investments. It includes due diligence questionnaires for all forest-risk commodities that align with the Accountability Framework.

Supportive policies and systems are needed

Fostering responsible commodity production and forest protection enables governments of producing countries to deliver rapid, low-cost emissions reductions and nature-based solutions that can bolster GDP, increase resilience, and support Indigenous Peoples, local communities, and smallholders. Consumer countries can also help facilitate responsible commodity trade through demand-side regulations and market incentives.

Additionally, government support for locally-developed monitoring, traceability, and due diligence systems in commodity sourcing regions can strengthen alignment between domestic governance measures and international market expectations and legislation, such as the European Union Deforestation Regulation. Policymakers in producer and demand countries can use the Accountability Framework to inform land use, climate, and trade policies that promote responsible production and trade of forest-risk commodities. 

Scaling landscape-level solutions

During today’s Forest Action Day activities, the AFi is announcing a new project as part of the Plans to Accelerate Solutions platform under the nature-based solutions activation group. Taking place over a three-year period, the project aims to strengthen international norms and enabling conditions for corporate action on supply chain initiatives. Doing so will support durable forest conservation alongside resilient and equitable rural development.  

The project will take a bottom-up approach to incorporate learnings and local stakeholder perspectives from 30 commodity production landscapes in ten countries, namely Argentina, Brazil, Cameroon, Canada, France, Gabon, Ghana, Germany, Indonesia, and Spain. It will identify locally-owned governance, traceability, and risk reduction solutions and systems that are effective and transferable.

Building on the Framework’s role as a global reference and basis for alignment, these solutions will be linked to responsible supply chain market expectations, claims, and reporting, which will help to unlock company investment and engagement towards sustainable landscapes.

What’s ahead for the AFi

Looking beyond COP30, the AFi will continue to develop consensus-based resources to help advance responsible supply chains that result in durable conservation, resilient landscapes, and GHG emissions reductions. To better understand role of deforestation and conversion in meeting emissions reduction goals and get started with the Framework, visit our page on climate and land use change.