The recent analysis by Global Canopy reveals that although big corporations have the potential to drive a global shift towards more sustainable supply chains to reduce deforestation, weak commitments are hindering progress. The study assessed 350 companies and 150 financial institutions, highlighting a lack of deforestation avoidance commitments in sectors like beef, leather, palm oil, soy, timber, and paper pulp, exposing companies to deforestation risks.
While some industries like palm oil show progress with 76% of companies having deforestation commitments, areas like beef lag behind at 65%. The report emphasizes the need for strengthened regulations like the EU Deforestation Regulation to prevent trade in products contributing to illegal deforestation. However, loopholes exist as certain habitats fall outside the scope, such as Brazil’s Cerrado savannah, calling for comprehensive regulations covering all types of natural habitats.
Challenges in combating deforestation also extend to financial subsidies supporting industries driving forest loss. The report underlines the importance of closing the financial gap to incentivize forest protection and address human rights issues associated with land rights denial. With only 3% of companies fully reporting deforestation in their supply chains, the need for ambitious, comprehensive regulations to cover legal and illegal deforestation, human rights abuses, and ecosystem conversion is crucial to curb global forest loss.
