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90% of Companies Not Prepared for Deforestation-free Future

The vast majority (90%) of companies disclosing to environmental disclosure platform CDP on deforestation are not prepared for incoming anti-deforestation regulations coming from jurisdictions like the UK and the EU, which could collectively cost them US$80 billion. CDP’s latest annual ‘Forest Report’ noted that more than 60% of the 1,043 disclosing companies are reporting some kind of risk caused by deforestation, such as the increased severity of extreme weather, but less than 10% have a robust public commitment to end deforestation by 2025. Only ten assessed companies have committed to ending deforestation while ensuring good social conditions and remediation are in place. Companies in the retail sector have demonstrated the poorest performance for putting deforestation commitments into practice, CDP said. “The eradication of deforestation from commodity supply chains makes economic and environmental sense but requires appropriate financial and policy incentives to prioritise action,” said Thomas Maddox, CDP’s Global Director of Forests and Land Use. “Companies acting now will reap the benefits of the opportunities. Companies acting later will face the highest costs. Financial institutions driving this action now will be future-proofing portfolios for what is inevitable. Financial institutions acting later will miss out on opportunities and risk stranded assets and significant financial losses.” 

 

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