Global Canopy released its 11th annual Forest 500 report (April 2025), which identifies and assesses the 500 most influential real economy companies in the global trade of nine key forest risk commodities – beef, leather, soy, palm oil, timber, pulp and paper, cocoa, coffee and rubber.
Human Level’s Take:
- Deforestation is a major global threat - driving climate impacts like drought, wildfires and falling crop yields, with devastating consequences for communities, ecosystems and economies. The financial risks are stark: agribusinesses could lose up to 26% of their value by 2030 due to deforestation-linked agricultural declines. Despite the clear case for action, corporate progress remains slow and inconsistent.
- Among 500 companies assessed, only 3% have strong, well-implemented deforestation commitments. Many businesses also fail to address the deep link between deforestation and human rights. Since 2012, over 2,000 people - many from Indigenous Peoples and local communities - have been killed defending land and nature. Serious action on deforestation must also include addressing human rights impacts, as well as ensuring free, prior and informed consent (FPIC), respect for customary land rights, and zero tolerance for violence against environmental and human rights defenders.
- Global Canopy says businesses have a crucial role to play. Laggards must start by assessing their exposure to deforestation and related human rights risks - especially in high-risk sectors like beef and leather - and publicly commit to ambitious, time-bound targets. They must also start engaging with suppliers to support alignment with deforestation- and conversion-free standards.
- Late majority companies should focus on delivery by assessing exposure to high-risk commodities, prioritising action where risks are greatest, publishing clear implementation plans (including on human rights), setting strong remediation commitments, reporting transparently - starting with highest-risk areas - and collaborating with peers to scale solutions.
- Leaders can set the pace by demonstrating effective action to peers and policymakers, and identifying regulatory measures to accelerate progress, supporting supplier compliance with deforestation- and conversion-free standards, leveraging supply chains to prevent deforestation, ecosystem conversion, and related human rights abuses, reporting progress transparently in line with best practices, and actively including and supporting smallholders to meet deforestation and conversion standards.
Some key takeaways:
- The current state of play: Deforestation is putting us all at risk, fuelling climate impacts like droughts and wildfires and reduced agricultural yields, which will have immeasurable impacts on lives, livelihoods, communities and economies. Deforestation also carries major business risks, with agribusinesses potentially losing 26% of their value by 2030 due to global agricultural decline driven by deforestation. At the same time, protecting forests is one of the most effective ways to tackle climate change and nature loss as deforestation accounts for 11% of global emissions. Despite the benefits of tackling deforestation, only a minority of the 500 companies assessed are taking meaningful action to address deforestation. For instance, only 3% are leading the way with strong commitments and adequate implementation, while 63% have partial commitments and/or weak implementation, and 34% have no commitments at all. More specifically, just 16 companies are leaders with both strong deforestation commitments for all the commodities they are assessed for, and evidence of adequate implementation. 316 companies make up the late majority, signalling some intent on addressing deforestation but making only partial commitments and/or weak progress on implementation. 168 companies are laggards, which means they are holding back progress on eliminating commodity-driven deforestation, with no publicly available deforestation commitments.
- Action on human rights goes hand in hand with ending deforestation: Deforestation is often accompanied or preceded by human rights abuses, with Indigenous Peoples frequently facing threats and violence. Since 2012, more than 2,000 people have been killed defending their land or environment from destruction or illegal occupation. Therefore, companies need to identify, address and eliminate the associated human rights abuses in their supply chains in order to effectively eliminate deforestation and the conversion of natural ecosystems. Despite the link between deforestation and human rights abuses, many companies overlook this connection. For instance, only 6% of companies have comprehensive human rights policies for one or more commodities. In addition, corporate commitments on the three human rights issues directly related to the prevention of deforestation and conversion are weak. These issues are the requirement for the FPIC of Indigenous Peoples and local communities; respect for customary rights to land, resources and territory; and zero tolerance for violence and threats against forest, land and human rights defenders. However, having human rights commitments is meaningless without implementation. Companies must have a human rights due diligence process in place to monitor compliance within their operations and supply, as well as provide transparent reporting on the outcomes or progress of their due diligence process.
- The private sector has a critical role to play: The report recommends that the 500 companies assessed do the following, depending on whether they are considered to be laggards, the late majority or leaders. For all, they are recommended to draw on data, science and best practice to act on deforestation, conversion and associated human rights abuses in their supply chains. Laggards, who face the most risk, are recommended to get started now by 1) assessing their exposure to deforestation, ecosystem conversion and associated human rights abuse risks and impacts in their beef and leather supply chains; 2) publishing the outcomes of their risk assessments; 3) setting and publishing a comprehensive deforestation commitment that covers all high-risk commodities, including an ambitious target date; and 4) start engaging with suppliers to help bring them into compliance with deforestation and conversion-free standards. The late majority are recommended to back up their commitments with credible strategies and action on implementation and transparent disclosure. This includes: 1) conducting comprehensive risk assessments to identify the extent of exposure to high-risk commodities, and ensure action is prioritised on those that are highest risk in their supply chains; 2) implementing and publishing processes to make progress towards their commitments – including on human rights – and setting strong commitments to remediate for any harms that take place after the cut-off date; 3) publicly reporting on progress towards commitments in line with best practice, beginning with the highest risk commodities; and 4) collaborating with other companies to share knowledge on how to make effective progress towards supply chains that are free from deforestation, ecosystem conversion and associated human rights abuse. Leaders are recommended to remain a leader by 1) showing policymakers and other companies what is doable, and be clear about what regulation can help make continued progress easier and quicker; 2) continue engaging suppliers to bring them into compliance with deforestation and conversion-free standards; 3) using leverage throughout the supply chain to encourage action from suppliers, ensuring commodity volumes are not contributing to deforestation, ecosystem conversion or associated human rights abuses, but also that suppliers are not contributing to these impacts in any other supply chains; 4) publicly reporting on progress towards commitments in line with best practice; and 5) actively including smallholders in supply chains, with additional support and engagement provided to help bring them into compliance with deforestation and conversion standards.
