New Ceres’ report analyzes corporate progress on deforestation risks

BOSTON - With the world’s attention on the Brazilian Amazon where negotiations at the United Nations Climate Change Conference (COP30) are underway, Ceres today released a report that finds that dozens of companies in the most at-risk sectors are not taking key steps to end deforestation and conversion in their supply chains – but a few major companies are demonstrating that achieving this goal is possible. 

While considerable action is needed to protect forests and other natural ecosystems, Ceres’ report, Corporate Progress on Deforestation Risk: Analysis for Investors, provides a detailed assessment of corporate progress and highlights business practices that effectively address deforestation risks. The report also identifies jurisdictional or landscape initiatives as a major opportunity to accelerate progress across sectors. 

Specifically, Ceres found:  

• Cleaning up supply chains is possible: Five out of 53 companies disclose at least one commodity supply chain that is 100% deforestation-and conversion-free. 

• Leading companies report considerable progress: Major food product manufacturers like Danone SA and Nestlé SA disclose over 95% deforestation- and conversion-free sourcing for their palm oil, soy, and timber, paper, and pulp commodity supply chains. Nestlé also discloses a 100% deforestation- and conversion-free cattle supply chain and shows good faith efforts to further improve its cocoa supply chain through expanded traceability and monitoring. 

• More action across at-risk commodities is needed: Companies are most likely to disclose progress on their palm oil supply chains, but far fewer are sharing the extent to which they are managing cocoa-related risk. Transparency across all commodities, especially in early stages, is important for risk management. 

• Collaboration beyond individual supply chains offers huge opportunity: Nearly half of companies disclose involvement in jurisdictional or landscape initiatives, which are critical for addressing the systemic challenges at the root of ongoing deforestation and conversion. 

“High on the COP30 agenda, safeguarding forests and natural ecosystems is critical to the resilience of the global economy and for helping companies and investors to reach their climate and nature goals,” said Meryl Richards, program director, food and forests at Ceres. “With many major companies committing to eliminate deforestation and conversion from their agricultural supply chains by 2025, Ceres’ report lays out where corporate action stands and where investors can focus their engagement work with companies.” 

Land use change – primarily from forest clearing and the conversion of other natural ecosystems for agriculture – accounts for around 11% of global greenhouse gas emissions and up to11% of global biodiversity loss. If deforestation continues unchecked, associated risks could significantly diminish the value of the world’s largest food and agriculture companies, amounting to $150 billion in losses by 2030. 

Ceres assessed the performance of 53 companies in the most at-risk sectors on whether they were implementing three strategies known to successfully reduce deforestation risk. These areas include:  

• Trace and monitor products for deforestation and conversion in a manner that credibly supports deforestation- and conversion-free claims.  

• Manage and address non-compliance quickly and effectively when it is identified. 

• Prevent and eliminate incidences of deforestation and conversion in sourcing landscapes. 

“Companies that failed to meet their commitments should be ambitiously working to eliminate deforestation and conversion from their supply chains,” said Karen Mo, director, food and forests at Ceres. “Using the insights from Ceres’ new report, investors can identify key gaps in corporate deforestation- and conversion-free strategies and encourage companies to not only address the risks but also capitalize on business opportunities to build resilience.” 

Since 2010, Ceres has been promoting investor understanding of deforestation-related financial risks and supporting them in successfully voicing these risks to corporate boards and at shareholder meetings. In 2023, Ceres published Deforestation Scorecard: Assessing Corporate Action on Deforestation Amid Growing Regulatory Risk, which benchmarked 53 of the world’s biggest companies on their deforestation policies.  

About Ceres 

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and resilient economy. With data-driven research and expert analysis, we inspire investors and companies to act on the world's sustainability challenges and advocate for market and policy solutions. Together, our efforts transform industries, unlock new business opportunities, and foster innovation and job growth – proving that sustainability is the bottom line.