KAMPALA, MAY 27, 2024 - New data from the Accountability Framework initiative [AFi] and Carbon Disclosure Project [CDP] show that achievement of deforestation- and conversion-free supply chains is possible, but still uncommon around the world. The AFi and CDP examined hundreds of company disclosures and revealed their findings today in Time for Transparency: Deforestation- and conversion-free supply chains.
The report provides the first clear and quantitative look at the extent to which major companies have been able to eliminate deforestation from their supply chains. Based on disclosures made last year through CDP, 64 companies say they have achieved at least one deforestation- and conversion-free commodity supply chain, based on a high-quality disclosure.
The companies reported a total of 66 agricultural and forestry supply chains as free from deforestation or conversion of other ecosystems. Those supply chains include 31 for timber products, 15 for palm oil, 9 for soy, 6 for cattle products, 3 for cocoa, 1 for coffee, and 1 for rubber.
“Companies must eliminate deforestation and conversion from their supply chains to meet near-term climate and nature targets, as well as to comply with emerging laws like the EU Deforestation Regulation,” said Leah Samberg, Lead Scientist, AFi. “These new data demonstrate that companies need to invest in effective monitoring and control systems to address deforestation and conversion associated with their operations and suppliers, however few are doing so.”
In total, 881 companies disclosed through CDP on at least one commodity supply chain, for a total of 1,498 commodity-specific disclosures across seven high-risk commodities. About half of the companies (445) disclosed on deforestation- and conversion-free progress. However, only 186 companies provided clear and appropriate information to justify their claims.
“We recognise that many companies were transparent about the extent to which their supply chains are free from deforestation and conversion," said Tomasz Sawicki, Head of Land, CDP. “But the latest analysis tells us that the majority of companies remain far from achieving deforestation- and conversion-free supply chains by 2025, which is the immediate target.”
A variety of issues undermined the reliability of information companies disclosed, such as reliance on certification programs and risk assessments that cannot guarantee commodities are deforestation-free. Additionally, some disclosures were missing important information on company activities, products, regions, or suppliers.
“Companies need to provide stronger evidence to support claims that their commodity supply chains are free of deforestation and conversion,” Sawicki said.
The report calls on companies that produce or source agricultural or forestry commodities to communicate publicly and to suppliers their intentions to achieve deforestation- and conversion-free supply chains. Importantly, they should consider the impacts of their supply chains on all natural ecosystems, not only forests. To achieve compliance with polices, companies should also monitor and engage their suppliers.
“Making no-deforestation or no-conversion intentions clear through public policies, commitments, and supplier engagement supports disclosure and helps accelerate the transition to responsible production and trade,” Samberg said.
The CDP forests questionnaire tracks company performance on eliminating deforestation from agricultural and forestry supply chains. A record-breaking 1,152 companies disclosed through it in 2023. It was the first year companies disclosed on deforestation- and conversion-free supply chains in a standardised format using indicators developed in partnership with the Accountability Framework initiative.
About the AFi
AFi is a collaborative programme to protect forests, other natural ecosystems, and human rights by making ethical production and trade the new normal. To achieve this critical transformation, the AFi promotes and supports implementation of the Accountability Framework, a detailed roadmap for setting goals, taking action, and reporting progress towards ethical supply chains. The initiative is led by the AFi Coalition: a diverse group of 24 environmental and human rights organisations from around the world that developed the Accountability Framework and work to drive positive impact in the agriculture and forestry sectors.
About CDP
CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states, and regions. Founded in 2000 and working with over 700 financial institutions representing more than US$142 trillion in assets. CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests.
Over 24,000 organisations around the world disclosed data through CDP in 2023, including more than 23,000 companies worth two thirds global market capitalization, and over 1,100 cities, states, and regions.
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