Companies Making an Effort to Build Deforestation-Free Supply Chains
(3BL Media/Justmeans) â Forests provide one of the cheapest and most effective ways to remove carbon from the atmosphere, and thereby help mitigate climate change. In the last few decades, global forests have absorbed about a third of the annual carbon dioxide released into the atmosphere from fossil fuels. However, human beings have been destroying forests at a rate of 13 million hectares per year for the last 10 years.
The sourcing of some of the major agricultural commodities is a key driver of global deforestation. Businesses can take affirmative action to cut the link between commodities and deforestation, without impacting their bottom line. According to the latest Global Forests Report 2014 from CDP, an organization helping companies and institutional investors adopt a more sustainable business approach, nearly 90 percent of businesses realize a commitment to deforestation-free supply chains is the first step in mitigating climate-related risks.
The CDP report makes a strong business case for disclosing exposure to forest-risk produce across the world. It analyzes the disclosures from 152 companies globally, including Cargill, Unilever, Wilmar International, and Asia Pulp & Paper. These companies, representing a market capitalization of over $3 trillion, have responded to investor calls for transparency on deforestation and forest-risk commodities.Â Â
A large number of companies have also set ambitious deforestation targets in the last one year. These are expected to save carbon emissions of more than 1.5 Gigatons over the next six years, which is equivalent to the combined annual emissions of Central and South America from energy consumption.
In particular, companies that have been responding regularly to CDPâs forests program are now able to identify a growing number of opportunities, including securing their supply chain against deforestation risks. This in turn is helping these companies secure shareholder value. Clearly, the companies that are bringing their supply chains with them on this path are able to achieve much more effective results.
Source: CDP Forests Report
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