CDP report highlights increased disclosures on deforestation risk
– Six out of ten companies are transparent about the impact of their business on global forests. But only 10% have robust and therefore credible plans to reduce deforestation to zero by 2025. And just 1% promised zero deforestation along with social and economic protections for workers. It is the picture of the commitment of companies against deforestation at a global level taken by Carbon Disclosure Project (CDP) in a report published when a reassuring data comes from Brazil: the destruction of the Amazon forest, in the first 6 months of 2023, has dropped by 34% compared to the previous year, even if 2650 km2 of tropical forest have disappeared.
Many words but few actions on deforestation
For CDP, the trend of disclosures is very positive. Compared to 2017, the number of companies that make public at least some of the risks for deforestation associated with their business has grown by 300%. But the concrete actions and the solid plans disappear. Although the economic convenience there is all, according to the same companies. The exposure of more than 1000 companies surveyed by CDP to the risks of deforestation puts the total potential losses at 330 million dollars per company. While the cost of measures to mitigate this risk is estimated at just 17 million.
“It has been a record year for companies to report their impact on forests, which is encouraging for transparency. The results show that companies are becoming increasingly aware of the risks and opportunities that deforestation represents, but we continue to see a gap between commitments and tangible actions,” comments Thomas Maddox of CDP.
According to CDP data, only one third of companies have supervisory and board-level expertise on forest issues. Hardly any company (just 3%) carries out comprehensive forest risk assessments, including mapping and reporting of operations and suppliers. All measures that would help in a tangible way to bring to zero deforestation.