SINGAPORE -
Media OutReach Newswire - 28 June 2024 - New data from the
Accountability Framework initiative (AFi) and
CDP shows that achievement of deforestation- and conversion-free supply chains is possible, but still uncommon around the world.
The AFi and CDP examined hundreds of company disclosures and revealed their findings in
Time for Transparency.
The report provides the first clear and quantitative look at the extent
to which major companies have been able to eliminate deforestation from
their supply chains.
Based on disclosures made last year through CDP, eight companies in
Southeast Asia say they have achieved at least one deforestation and
conversion-free commodity supply chain, based on a high-quality
disclosure. Those supply chains are two for timber products, five for
palm oil, one for soy, and one for cocoa.
Of 37 companies in Southeast Asia that reported on their management of
deforestation during the previous year, only 21 companies disclosed
information through CDP in response to questions on deforestation and
conversion-free supply chains. Of these, 10 companies made a
high-quality disclosure, reporting that at least one of their commodity
supply chains was less than 90% free from deforestation and conversion.
"We recognise that over half of companies located in Southeast Asia were
transparent about the extent to which their supply chains are free from
deforestation and conversion," said Tomasz Sawicki, Head of Land, CDP.
"But the analysis shows that the number of disclosures from the region
is still low and that that the majority of companies remain far from
achieving deforestation- and conversion-free supply chains by 2025,
which is the immediate target."
Globally, 881 companies disclosed, and about half of the companies (445)
disclosed on deforestation- and conversion-free progress. However, only
186 companies provided clear and appropriate information to justify
their claims. 64 companies worldwide say they have achieved
deforestation and conversion free supply chains.
"Companies must eliminate deforestation and conversion from their supply
chains to meet near-term climate and nature targets, as well as to
comply with emerging laws like the EU Deforestation Regulation," said
Leah Samberg, Lead Scientist, AFi. "These new data demonstrate that
companies need to invest in effective monitoring and control systems to
address deforestation and conversion associated with their operations
and suppliers, however few are doing so."
A variety of issues undermined the reliability of information companies
disclosed, such as reliance on certification programs and risk
assessments that cannot guarantee commodities are deforestation-free.
Additionally, some disclosures were missing important information on
company activities, products, regions, or suppliers.
"Companies need to provide stronger evidence to support claims that
their commodity supply chains are free of deforestation and conversion,"
Sawicki said.
The report calls on companies that produce or source agricultural or
forestry commodities to communicate publicly and to suppliers their
intentions to achieve deforestation- and conversion-free supply chains.
Importantly, they should consider the impacts of their supply chains on
all natural ecosystems, not only forests. To achieve compliance with
polices, companies should also monitor and engage their suppliers.
"Making no-deforestation or no-conversion intentions clear through
public policies, commitments, and supplier engagement supports
disclosure and helps accelerate the transition to responsible production
and trade," Samberg said.
The report concludes that it is imperative that companies not only
pledge to deforestation- and conversion-free operations but also take
concrete steps towards this goal. Comprehensive responses to disclosure
requests, transparent communication of policies, a thorough
understanding of certification processes, and a proactive approach to
risk assessment are all crucial. By focusing on these areas, companies
can make significant strides in preserving natural ecosystems and
ensuring the integrity of their supply chains, ultimately contributing
to a more sustainable future for all.
The
CDP forests questionnaire
tracks company performance on eliminating deforestation from
agricultural and forestry supply chains. A record-breaking 1,152
companies disclosed through it in 2023. It was the first-year companies
disclosed on deforestation- and conversion-free supply chains in a
standardised format using indicators developed in partnership with the
Accountability Framework initiative.
The Global Forests Report 2024, titled "Time for Transparency:
Deforestation-and Conversion-Free Supply Chains," is available in both
English and
Bahasa Indonesia.
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