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As deadline approaches, AFi Coalition urges companies to disclose deforestation- and conversion-free commodity volumes

19 julho 2023

Companies have until 26 July to disclose through the CDP forests questionnaire. Credible disclosure is essential to understand company progress towards ethical supply chains.

Companies have one week remaining to disclose their progress towards deforestation-and conversion-free supply chains through the CDP forests questionnaire, as called upon by the Accountability Framework initiative (AFi) Coalition.

New to CDP forests are questions incorporating indicators developed through collaboration between the AFi, leading reporting and assessment initiatives, and representatives from the private sector. They include metrics of traceability, land use change footprint, and proportion of supply chains that are deforestation- and conversion-free.

While the questions are required, this year companies will be assessed based on their transparency regarding deforestation- and conversion-free performance, rather than their progress towards fulfilment of targets. To that end, CDP will score company disclosures based on completeness of the response in relation to the total volumes produced or sourced. From 2024, performance related to deforestation- and conversion-free volumes will contribute significantly to a company’s overall CDP score.

This is not the first time that questions about performance related to deforestation and conversion have been included in the CDP forests questionnaire. In 2022, CDP asked companies to disclose deforestation- and conversion-free information in an exploratory question. Of the 810 companies that disclosed via CDP forests on at least one commodity, nearly half (383) reported that at least some of their volumes were deforestation- and conversion-free. An additional 20% of the responding companies (165) said they plan on achieving some deforestation- and conversion-free volumes within two years, according to CDP.

Among processors, traders, manufacturers, and retailers, 12% said they monitor the deforestation and conversion footprint of their full supply chain for at least one commodity, and can report that more than 90% of the volume is verified to be deforestation- and conversion-free, according to the 2023 Global Forest Report. These preliminary responses indicate that, for many companies, assessment and disclosure of deforestation- and conversion-free performance is already a reality.

To understand company progress, credible disclosure is essential. That’s why the AFi Coalition is calling on all companies that produce or source agricultural or forestry commodities to disclose the deforestation- and conversion-free status of 100% of the commodity volumes produced or sourced using standardised and credible indicators. Companies should disclose regardless of their position in the supply chain or their level of progress towards deforestation- and conversion-free supply chains.

Disclosing performance this year will enable stakeholders to understand and recognise progress as companies advance towards a range of climate and nature goals. For details on what should be disclosed, see the AFi’s recommendations here.

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