Our key takeaway: Corporate commitments and actions on addressing deforestation, conversion of natural ecosystems and associated human rights abuses are sorely lacking. Forest 500 highlights companies’ failure to recognise the inextricable link between deforestation and human rights impacts, as well as the link between measures to tackle deforestation and progress towards climate targets. According to the report, human rights must be embedded into commitments and actions on deforestation and vice versa. Human rights defenders, Indigenous Peoples, and local communities are called out as groups that companies must consider in their deforestation and human rights commitments and actions. The report identifies key actions that companies can take to accelerate effective action on tackling deforestation in their supply chains: (1) develop and publish a publicly available commitment to tackle deforestation, covering all highest risk commodities; (2) recognise the inextricable link between deforestation and human rights abuses; (3) develop and publish a commitment to respect human rights including those of Indigenous Peoples and local communities; (4) ensure that commitments are effectively implemented and engage with non-compliant suppliers where relevant; (5) publicly disclose information about suppliers, sourcing regions and measures taken to address deforestation; (6) recognise that measures to tackle deforestation is crucial to meeting climate goals and targets; and (7) focus attention on cattle as the biggest driver of deforestation.
Forest 500 published A decade of deforestation data (February 2024), which identifies the companies and financial institutions with the greatest links to deforestation, conversion of natural ecosystems and associated human rights abuses and assesses their performance to tackle these issues:
- “The most concerning trend of all is the total blind spot on human rights”: The report emphasises how companies’ progress on addressing deforestation, conversion of natural ecosystems and associated human rights abuses “just doesn’t cut it.” For instance, three in 10 (30%) of companies have not made a commitment to address deforestation. Doing slightly better but still making slow progress are financial institutions. Only 45% have a publicly available deforestation policy. Notably, the report highlights the inextricable link between deforestation and human rights abuses: “Deforestation is inextricably linked to land use conflict and violence and threats against forest, land and human rights defenders, making a focus on human rights imperative.” Despite this link, only 1% of companies published a commitment to all the human rights commitments they are assessed for. According to Forest 500, there is “serious work ahead to ensure human rights are embedded and better understood as linked to deforestation.”
- Effective implementation of commitments is lacking: The report states that nearly two-thirds (63%) of companies who have made commitments to address deforestation fail to show evidence of effective implementation of these commitments. Only 6% showed adequate evidence of implementation for all highest risk commodities. In addition, a lack of transparency hinders companies’ progress on tackling deforestation, with just 3% of companies “publicly reporting how much deforestation has occurred over time in their supply chains for all highest risk commodities.” Moreover, many companies are not recognising the link between action on climate change and measures to tackle deforestation: “Accounting for 11% of global carbon emissions each year, companies and financial institutions must recognise that deforestation is central to the climate agenda. Despite this, 94% of Forest 500 companies with net-zero commitments are likely off-track to achieve those commitments, based on their inaction on deforestation and conversion.” Furthermore, palm oil showed the strongest progress of any commodity while cattle remains a commodity that companies are failing to look at.
- Recommendations for companies: The report highlights key takeaways from assessing companies’ commitments and actions on deforestation and delves into measures that companies can take to accelerate action on this issue: (1) “Voluntary action from companies doesn’t cut it - regulation is the only way to shift the system.” This means that companies with no publicly available policy are recommended to “[r]ecogise the growing risks they face by being linked to deforestation risk” and “[s]et a publicly available policy immediately.” Leading companies may decide to “[d]rive change across global supply chains by engaging suppliers to bring them into compliance”; (2) “Human rights must be embedded and better understood as linked to deforestation.” This means that companies must “publicly set and rapidly begin implementation of commitments that respect human rights, including those of Indigenous Peoples and also local communities in their supply chains, or risk failing to achieve any deforestation or net-zero commitments”; (3) “Pressure must be applied to all companies.” This means that companies must “[s]et commitments for all highest risk commodities exposed to through supply chains”, which are aligned with Accountability Framework initiative (AFi) guidance. Companies should also publish their work on implementing commitments on their website and put processes in place to monitor implementation; (4) “Commitments are never enough - even leaders need to improve implementation.” Companies should align their practices to the AFi and engage with non-compliant suppliers; (5) “Transparent reporting remains essential.” Companies should “[p]ublicly disclose information about suppliers and sourcing regions, and outcomes of monitoring”; (6) “To achieve net zero, deforestation must be recognised as central to the climate agenda”; and (7) “More attention must be placed on cattle, the biggest driver of deforestation.” Companies who are leaders on beef and leather commitments and their implementation can require their suppliers to be compliant across all of their operations.
