Companies play a key role in ending deforestation because their revenues depend on commodities that cause it. As a key source of demand for these commodities, they are also able to influence how they are produced and drive change at scale. Encouragingly, more and more companies are beginning to recognize the benefits of acting on deforestation. In spite of 2020’s challenges, the number of companies disclosing data through Carbon Disclosure Project (CDP) on how they are managing deforestation has increased by 27% since last year - 687 companies disclosed data in 2020. This means that CDP has the most comprehensive dataset on corporate forest action, ensuring companies and investors can address deforestation by understanding their value chains, the current market state, where course correction is needed and learn from best practice. Transformation starts with disclosure.
However, to end deforestation, it is clear the scale and speed of action must increase. Disclosure on deforestation stiltrails behind that on climate change and water security – only 31% of requested companies disclosed in 2020. Progress to end deforestation to date has been slow, limited to certain products, geographies or value chains. The majority of the market is falling short of the ambition needed. The right mix of solutions is needed - with collaboration and transparency at the heart of it. Ambitious collective action on deforestation is needed to achieve global climate goals, curb biodiversity loss and manage pandemic risks.