Deforestation: Big businesses ‘hiding behind half-baked commitments’, despite mounting risks

An analysis of 500 large businesses with supply chains in forest-risk commodities has found that one-third have no public commitment to address deforestation. Moreover, most of the others are excluding key commodities or sourcing regions.

Deforestation: Big businesses ‘hiding behind half-baked commitments’, despite mounting risks
The 2025 edition of NGO Global Canopy’s Forest 500 report, published today (29 April), assesses the commitments which the 500 corporations with the most exposure to global deforestation risk have publicly made to address forest-related risks.

Businesses sourcing beef, leather, palm oil, soy, pulp and paper, timber, cocoa, coffee and rubber are included in the 500. The report also assesses whether each business provides evidence of adequate implementation of its programmes to address deforestation. Global Canopy has categorised just 16 of the businesses – 3% of the 500 – as having strong deforestation commitments for all the key commodities they source, plus evidence of implementation.

One-third (34%) of the businesses are classed as laggards, with no public commitment to address deforestation. A stubborn group of around two-dozen businesses has featured in every Forest 500 assessment since 2014 without making a commitment. Commitments are most likely to be missing for leather and rubber sourcing. 70% of the Forest 500 companies sourcing leather have no deforestation target, and the proportion stands at 62% for rubber.

Global Canopy is urging these companies to set targets as soon as possible, building the business case for doing so by assessing risks and opportunities. Its report highlights the mounting physical risks associated with forest risks, as well as regulatory non-compliance risks. From 30 December, large businesses will be banned from importing deforestation-linked beef, cocoa, coffee, palm oil, natural rubber, soy or wood to the EU, under the EUDR. This mandate will be expanded in the future to small businesses. Businesses should also set out plans to publicly report on progress towards targets in line with best practice.

Target loopholes
Of the businesses that do have targets, most exclude either key high-risk commodities or key sourcing regions – or the businesses are collecting and disclosing little to no information on their progress. Global Canopy describes these 315 businesses as the “late majority” and describes their commitments as “half-baked”. Businesses in this category include McDonald’s, Nike and Decathlon.

The report recommends that these businesses move past initial commitments and identify areas for improvement, whether this is improving mechanisms to document progress, or expanding risk assessments and target-setting to additional commodities. Global Canopy also wants these businesses to set out processes to remediate harms that take place after a 2020 cut-off date.

The report acknowledges that many businesses may feel compelled to deprioritise environmental sustainability amid a turbulent economic and geopolitical background. But it warns that the risks of inaction on deforestation will persist and accelerate. Global Canopy’s executive director Niki Mardas said: “In these turbulent times, it is sometimes important to restate the obvious: ending and reversing deforestation is a triple win for climate, nature and people.

“It is also the bedrock for economic stability in regions where drought linked to deforestation is already causing turmoil. There’s a reason why practically every country in the world has signed up to the 2030 target of ending and reversing deforestation.” The target is detailed in the Kunming-Montreal Biodiversity Framework, which was ratified in 2022 after a lengthy UN-led process that was heavily disrupted due to the Covid-19 pandemic. 196 countries are signatories to the Framework, often also described as the Biodiversity Treaty.

Source: edie.net