Major firms still failing to tackle deforestation: Global canopy

Subject: Environment

Section: Int Conventions

Context:

The non-profit research group Global Canopy has published a report indicating that many global brands connected to tropical forest loss do not have policies against deforestation.

About the report:

The Forest 500 report assesses the impact of 350 companies and 150 financial firms on tropical forests, focusing on their policies regarding key commodities linked to deforestation.

Report findings:

Despite ten years of monitoring, voluntary efforts by the industry to address this issue have been deemed a failure.
The report highlights the increasing awareness of the role of human activities, such as cattle farming and palm oil plantations, in threatening the world’s forests, which are vital in combating climate change and biodiversity loss.
Although nearly 200 countries supported the goal of halting and reversing deforestation by 2030 at last year’s COP28 climate talks, the Forest 500 analysis by Global Canopy reveals that significant action is still lacking.
Out of 257 companies and financial institutions monitored over the past decade, 23% have not made any commitment to addressing deforestation.
The study emphasizes the necessity for regulatory action over voluntary measures to ensure deforestation-free, conversion-free, and human rights abuse-free supply chains.
While welcoming new EU deforestation legislation, Global Canopy urges further action and faster legislation efforts from the US and Britain, noting that only 1% of firms analyzed are on track to comply with the EU’s new rules.

Public pressure:

The latest report reveals that 37% (187 entities) of companies and financial institutions analyzed lack a publicly available commitment to combating deforestation, showing a slight improvement from 40% last year.
It identifies JPMorgan Chase, Bank of America, and Mitsubishi UFJ Financial as the top financial institutions funding companies without deforestation commitments.
Among the 246 companies that have made at least one commitment to address deforestation, about 63% have failed to provide adequate evidence of their actions aligning with their stated intentions.
There is a disparity in focus, with efforts to address deforestation from palm oil receiving more attention than the cattle sector, which is identified as the largest driver of tropical deforestation.