The Carbon Disclosure Project report finds that 70% of 1,500 companies with high impact on forests fail to provide data on their impact and that corporate transparency on forests lags behind other environmental issues such as climate change and water security.
This is despite significant risks to business from deforestation, the ecological importance of forests and the role they must play in solving climate change, as well as the heightened environmental concern among investors, buyers and consumers.
Morgan Gillespy, Global Director of Forests at CDP, commented: “The silence is deafening when it comes to the corporate response to deforestation. For too long corporations have ignored the impacts of their supply chains on the world’s forests and have not taken seriously the risks this poses – both to their business and the world.
Environmental concern is at an all-time high, and companies are being demanded to be transparent and take decisive action to protect forests. Consumers increasingly want to know that their shopping basket isn’t driving the destruction of the Amazon, extinction of the orangutans and the climate crisis.
Businesses that want to maintain market share need to listen to the calls from their customers, investors and consumers - or they could face a backlash. Companies are already telling us reputational risk is the top risk they see from deforestation and this is likely to become ever more prominent as sustainable consumption trends continue and the market shifts”.
Analyzing these companies’ responses, the report reveals the level of action is insufficient to solve the problem of deforestation. This is despite damage to brand reputation from links to deforestation being the most frequently cited risk in the report.
However, CDP’s report also finds there are some companies leading the way, implementing numerous actions including engaging with their suppliers on the protection of forests. For example, global beauty giant L'Oréaland German consumer goods manufacturer Beiersdorf AG are leading on the sustainable sourcing of palm oil. To encourage its suppliers to manage their forest footprint, L'Oréal has developed its Sustainable Palm Index, to assess suppliers’ commitments and achievements in fighting deforestation.
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© CDP - Carbon Disclosure Project
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