CDP warns supply chain deforestation pledges are ‘unlikely’

The Carbon Disclosure Project (CDP) has revealed industry commitments to net zero deforestation are “unlikely”, unless commodity producers in the supply chain rapidly improve their management of risks and opportunities, according to its new ‘Investor Research’ report.

In the report, the cattle farming sector was characterised by “extremely weak” traceability among suppliers and soy supply chains remain “largely unmapped” and at high risk of sourcing from areas where deforestation has occurred.

Among the companies highlighted in the report, Minerva Foods and JBS from Brazil, and the UK’s Glencore Agriculture score worst in management of deforestation related to cattle and soy.

Carole Ferguson, head of Investor Research at CDP, said: “What is clear from this research is that if FMCGs are relying on this part of the supply chain to meet their net zero deforestation ambitions – a lot more work needs to be done.

“Bold and urgent action from these producers is the critical first step in tackling deforestation throughout the supply chain.”

Ling Sin Fai Lam, the report’s lead analyst, said: “FRC companies face unique risks and opportunities since their distance from end-customers, compared to FMCGs, means that they are somewhat insulated from changes in consumer preferences. 

“With countries like the UK looking to regulate supply chains further, the group of companies in this report will now be in the spotlight, and by addressing issues within their own supply chains, they can improve the sustainability of commodity production and tackle deforestation at the ground level.”

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