Executive Summary: No wood for the trees
A summary of CDP's Investor Research on the consumer goods sector, ranking 22 of the largest publicly listed companies
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No wood for the trees
Leading consumer goods companies caught out by deforestation
This report analyses action against deforestation by 22 companies by scale and commodity use in the consumer goods sector. These companies accounting for 4% of World Company market capitalization are shown to be off track to achieve zero net deforestation targets by 2020. Due to their proximity to the consumer they face reputational risks from commodities linked to deforestation with potential risks to revenues. They also face operational risks from disruption in the supply chain, especially in Asia and South America.
50%
Revenue exposure due to palm oil can be significant and dependencies total more than 50% for some companies.
90%
Close to 90% of global palm oil production is concentrated in Southeast Asia along coastal areas at risk jeopardizing global supply chains.
70%
70% of food companies have invested in plant-based meat alternatives.
CDP’s League Table of companies in the consumer goods sector:
| League Table rank | Company | League Table weighted rank | Transition risks rank | Physical risks rank | Transition opportunities rank | Climate governance & strategy rank |
| 1 | Danone | 7.42 | 3 | 5 | 6 | 5 |
| 2 | Nestle | 7.44 | 8 | 6 | 5 | 3 |
| 3 | L'Oreal | 7.96 | 9 | 8 | 3 | 6 |
| 4 | Unilever | 8.05 | 20 | 4 | 1 | 1 |
| 5 | Kellogg | 8.10 | 10 | 7 | 9 | 2 |
| 6 | Mars | 8.24 | 13 | 2 | 2 | 8 |
| 7 | Pepsi-Co | 10.25 | 5 | 13 | 17 | 7 |
| 8 | McDonalds | 10.42 | 16 | 18 | 4 | 9 |
| 9 | General Mills | 10.45 | 12 | 12 | 10 | 10 |
| 10 | Kao Corp | 10.48 | 17 | 19 | 7 | 4 |
| 11 | Fonterra | 10.87 | 1 | 14 | 12 | 16 |
| 12 | Reckitt Benckiser | 10.99 | 7 | 9 | 16 | 12 |
| 13 | Colgate Palmolive | 10.99 | 6 | 3 | 20 | 11 |
| 14 | Procter & Gamble | 12.19 | 15 | 10 | 13 | 13 |
| 15 | Campbell Soup | 12.39 | 2 | 11 | 21 | 17 |
| 16 | Mondelez | 12.74 | 19 | 1 | 15 | 13 |
| 17 | Yum! Brands | 13.31 | 14 | 21 | 8 | 18 |
| 18 | Estee Lauder | 13.84 | 11 | 20 | 14 | 19 |
| 19 | ConAgra | 14.57 | 18 | 15 | 18 | 15 |
| 20 | Kraft Heinz | 14.77 | 4 | 17 | 22 | 22 |
| 21 | Restaurant Brands | 16.60 | 21 | 22 | 17 | 20 |
| 22 | Tyson Foods | 16.73 | 22 | 16 | 11 | 21 |
| Weighting | 35% | 10% | 25% | 30% |