---
title: Forests
description: Natural forests play a crucial role in providing services that underpin multiple economic sectors. Learn why you should report data on forests.
locale: en
canonical: https://www.cdp.net/en/disclose/question-bank/forests
contentType: page
updatedAt: 2025-01-09T09:33:29.048Z
---

# Forests

CDP provides companies, financial institutions, states and regions with opportunities to measure and manage their forest-related dependencies, impacts, risks and opportunities by assessing and reporting on progress. This is done against a framework aligned with international best practice to achieve our global environmental goals.

![report on forests through CDP](https://images.ctfassets.net/v7uy4j80khf8/7iH24BVFYz2liaPmhm2fYn/9e5859c1535af1d13a8ebe8bd9e22893/Forest.jpg?w=800&fm=webp&q=80&f=center)

Natural forests are one of the most important terrestrial ecosystems. They play a crucial role in providing services that underpin multiple economic sectors such as climate regulation, water provisioning and maintaining biodiversity. Ecosystem conversion, driven primarily by conversion of natural forests to agricultural land is one of the most significant environmental challenges facing us today. 

To address land use change more broadly, CDP is using its disclosure framework to track progress on eliminating conversion and degradation of all land-based natural ecosystems, including forests. In the future, we will ask organizations to disclose their progress on minimizing impacts to owned and managed lands and expand on restoration of natural ecosystems. 

Companies can disclose their environmental data by responding to our corporate questionnaire. Investors can sign up as a Capital Market Signatories to access data from the world’s largest companies and major purchasers. Under the Forest Champions program, signatories benefit from tailored portfolio screenings that can be used for due diligence, engagement and decision making. 

**Disclose data****Become a Capital Markets Signatory **

## The global context

### > US$150tn 

The total value of the world’s forests — nearly double the value of global stock markets in 2020.

### 10% 

of global carbon emissions result from deforestation and forest degradation. Almost three-quarters of tropical deforestation is driven by the production of beef, soy, palm oil and paper.

## The risks

### $97.5bn

in potential losses due to the impacts of deforestation were reported by 328 companies undertaking assessments.

### 48%

of reported detrimental impacts are related to reputational and market risks.

### 30%

of companies reported physical forests-related risks in their supply chain.

## The opportunities

### 66%

of companies have recognized forests-related opportunities with the potential for substantive strategic or financial benefits.

### $150bn

worth of potential business opportunities were reported by just 33% of responding companies.

### $55.9bn 

worth of potential opportunities related to increased availability of products with reduced environmental impact – over a third of the value of all identified opportunities.

## How does CDP help?

### Explore our reports, case studies, and articles on our work on forests