Halting deforestation: a missed opportunity for climate, people and biodiversity

Deforestation lies at the heart of several environmental and social issues, driving greenhouse gas emissions, biodiversity loss, and compromising ecosystems for human and planetary health. To achieve net zero by 2050 and remain within safe, operating planetary boundaries, commodity-driven deforestation, conversion, and all associated human rights abuses, should be eliminated by 2025 or earlier, and all conversion should end by 2030 at the latest.

Land clearance for agricultural commodities, such as soy, palm oil, timber, and beef, drives 90% of global deforestation. As such, there is an urgent and unavoidable responsibility on behalf of food and agriculture companies to address deforestation throughout their business operations, as well as to avoid the significant financial risks of inaction and to comply with regulatory frameworks such as the EUDR.

Companies are falling short on actions to address deforestation.
While half of the assessed companies in the 2023 Nature Benchmark had commitments and targets to reduce their greenhouse gas emissions, only 15% of companies committed to zero ecosystem conversion, and only 17% disclosed what actions they were taking to achieve deforestation-free supply chains (for example, by disclosing commodities sourced according to DCF-aligned certification standards). Further, only 6% of companies have a timebound target to eliminate deforestation.

Overall, the results of the 2023 Nature Benchmark reveal concerningly low levels of disclosure on commitments and efforts to avoid or minimise conversion, and this was consistent across different regions and industry segments. It is apparent that companies must take immediate, tangible action to develop more sustainable and ethical supply chains.

The destruction of forests is intrinsically linked to human rights.
Deforestation is commonly linked to human rights abuses, including the violation of labour rights, land use conflicts, and failing to respect the customary rights of Indigenous Peoples and local communities to land, resources, and territory. Therefore, companies must strike a balance between social and environmental factors.

Despite this, companies are also underperforming in this area. A recent report by Global Canopy found that a third of companies did not have any publicly available human rights policies for the commodities they were assessed for. Furthermore, another of our 2023 Nature Key Findings [link ] revealed low levels of commitment among the companies assessed, to respect the rights of local communities. Ultimately, this compromises long-term sustainability.

Achieving conversion-free supply chains is challenging, but not impossible.
It is not enough for companies to merely commit to achieving conversion-free supply chains or respecting human rights; commitments must be followed through. Effective implementation can be challenging and requires consistent effort over time. A recent report by Global Canopy found that only half of the assessed companies which had deforestation commitments covering their high-risk commodities were taking further steps to monitor their suppliers or sourcing regions to align with these commitments.

Despite the challenges, there are a small number of companies taking positive action in this area. UPM-Kymmene, a Finnish company in the Paper & Forests segment, scored first among all companies assessed in the Nature Benchmark for its efforts towards achieving zero conversion. The company states that their wood sourcing does not contribute to deforestation anywhere in the world, and that they do not accept wood that comes from converted natural forest plantations; both explicit assertions in their supplier policy. They disclose certification schemes that are verified by independent external auditors, and a traceability system for their timber that is integrated into third party certified management systems.

The other five top performers in the ecosystem conversion indicator (Ajinomoto Group, Danone, Musim Mas, Amaggi Group, & Unilever) have all disclosed efforts in setting commitments and timebound targets to achieve zero conversion, ensured appropriate certification schemes covering the sourcing of their high risk commodities, and/or disclosed their sourcing regions and traceability systems. While there is still room for improvement, these companies demonstrate that action in this area is not impossible.

Progress can, and must, be made quickly.
Eliminating commodity-driven deforestation, conversion, and all associated human rights abuses by 2025, and all conversion by 2030 may seem an ambitious goal. However, these deadlines reflect the urgency of the situation. It is important to have as many companies as possible working towards these goals, to generate the momentum needed to mobilise peers and establish new industry standards. There is guidance available to help companies set a clear path for action on ecosystem conversion. For example, the Accountability Framework (AFi) offers practical, credible guidance to establish ethical and sustainable supply chains in the forestry and agriculture sectors. Such frameworks, alongside emerging legislative regulations such as the EUDR, should spur companies into action to eliminate ecosystem conversion, and associated human rights abuses, thereby helping to halt and reverse nature loss.

Insights co-authored by Vibhuti Patel in collaboration with the Nature Benchmark Team and Global Canopy