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Home > Research > Global Reports > Global Forests Report 2020

The collective effort to end deforestation: A pathway for companies to raise their ambition

Global Forests Report 2020

Download report (PDF)


Companies are realising the need to act on deforestation. Despite COVID-19, 2020 saw a 27% increase in companies disclosing on how they are managing deforestation and 93% of companies we analyzed are taking at least one industry-accepted action to safeguard forests. However, our latest report shows that this action is too slow and ambition is too low - it sets out a clear pathway for companies to follow and how they can measure their progress along it.


93%
of companies
have taken at least one industry-accepted measure to safeguard forests.
27%
increase
in the number of companies disclosing compared to 2019
1%
of companies
are taking 'best practice' action


Every year since 2015 10 million hectares of forests have been lost, which poses a threat to business, increases the risk of future pandemics and dangerous climate change.

Companies reported US$53.1 billion in risks from deforestation, with the total cost of response estimated at US$6.6 billion. This shows that action on deforestation is not only essential, but it also makes business sense.


Companies reported US$53.1 billion in risks from deforestation, with the total cost of response estimated at US$6.6 billion


While an increase in disclosure and company action is a step in the right direction, it is clear that not enough is being done.

Only four companies are identified as ‘best practice’ by CDP for taking nearly all relevant leadership actions: Essity, L’Oréal, Mars and Tetra Pak. This demonstrates the clear need for companies to step up action to end deforestation.



The business world is finally waking up to deforestation, but progress is too slow and ambition too low


Our report highlights the need for increased action by companies in the seven key commodities that drive the most agricultural deforestation globally: Timber products, palm oil, soy, cattle products, rubber, cocoa and coffee. It identifies 15 key performance indicators (KPIs) that companies should take to address deforestation.



The KPIs include metrics like board level oversight, setting a robust public policy on zero-deforestation, ambitious targets, a robust system to control, monitor and verify compliance with related policies and engaging suppliers on sustainable production methods.

See how companies are performing overall, and how companies perform on each commodities by using the dropdown menu.



Leading companies are forging a path to protect forests which their supply chains and other businesses can follow


Companies are beginning to take action to address deforestation in their supply chains. 81 companies showed a mature or best practice approach to tackling deforestation for at least one commodity - with action being strongest among companies producing or using palm oil.

Here are just some examples of companies taking action on deforestation

Empresas CMPC uses green bonds to match new financing opportunities and grow its investor base with its policies and 2030 environmental goals. The proceeds are used to finance or refinance new and existing projects with social and environmental benefits.

Read their case study in our report (PDF)

AMAGGI engages with its suppliers, uses certification schemes, ensures compliance through an improved monitoring system and participates in multi-stakeholder initiatives focused on the risk of deforestation linked to soybeans.

Read their case study in our report (PDF)

Mars has adopted measures across nearly all KPIs for palm oil, demonstrating an ambitious and holistic approach towards tackling deforestation in its supply chain.

Read their case study in our report (PDF)

Marfrig undertook a risk analysis of the impacts that climate change could have on pasture productivity and as a result on their cattle production. To mitigate these risks, they promote best practice and are working to restore riparian forests in the local watershed in Tangará da Serra (Mato Grosso, Brazil).

Read their case study in our report (PDF)



Disclosure drives action


Transparency on deforestation and forest-related risks is higher than ever and it is vital that this continues to accelerate. 687 companies disclosed through CDP on how they are managing deforestation – a 27% increase from 2019 - despite the challenges of COVID-19.

515 Investors with over US$106 trillion in assets and 19 purchasing companies requested companies to disclose on their management of deforestation through CDP in 2020.

Taking action on forest-related risks is essential for climate action and it makes business sense. It can stimulate economic development and create jobs, contributing to a green economic recovery from COVID-19 in the short term – while also building long-term resilience.

The solutions are here – together, we can reach our goal of a forest-positive future.


Download the latest report now (PDF)


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