Industry deforestation targets "unlikely to be met", says CDP

Industry-defined deforestation targets to become net-zero are "unlikely to be met" unless producers in supply chains are able to better manage their risks, according to a new report produced by London-based non-profit organisation the Carbon Disclosure Project (CDP).

In the “Zeroing-in on Deforestation” report, CDP ranked 27 companies which have the biggest impact on deforestation, especially those working in lumber, palm oil and soy, as well as cattle ranchers and traders.

The report found that these four sectors - which are collectively responsible for 80% of deforestation globally - have failed to implement practices designed to limit the environmental impact of their activities.

Faring particularly poorly were the soy sector and cattle producers, including global giants such as Brazil's Minerva Foods, Glencore Agriculture, and JBS - the world's largest meat processor.

The report found that in the meat industry, or at least those companies analysed by CDP, there was almost no transparency regarding where cattle were reared and what techniques were used.

It also found that only three of the major soy producers were able to fully map their supply chains, which prevented risk reduction in areas already facing heavy deforestation.

Carole Ferguson, Head of Investor Research at CDP, said: “What is clear from this research is that if FMCGs are relying on this part of the supply chain to meet their net-zero deforestation ambitions – a lot more work needs to be done.

“Bold and urgent action from these producers is the critical first step in tackling deforestation throughout the supply chain.”

Of the companies assessed by CDP, 68% of the total timber supply and 47% of land used for palm oil cultivation claim to meet deforestation standards. However, CDP said that it was "not enough" to have certification and that companies needed to combine this with other environmental impact reduction initiatives.

Ling Sin Fai Lam, Lead Analyst on the report, said: “With countries like the UK looking to regulate supply chains further, the group of companies in this report will now be in the spotlight, and by addressing issues within their own supply chains, they can improve the sustainability of commodity production and tackle deforestation at the ground level.”

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