New report reveals limited progress in achieving deforestation-free supply chains

A recent report by the Accountability Framework initiative (AFi) and CDP indicates that while achieving deforestation- and conversion-free supply chains is possible, it remains uncommon globally.

The report, titled “Time for Transparency,” provides the first quantitative analysis of major companies’ efforts to eliminate deforestation from their supply chains.

The study, based on company disclosures made through CDP last year, highlights that eight companies in Southeast Asia have achieved at least one deforestation- and conversion-free commodity supply chain. These include two for timber products, five for palm oil, one for soy, and one for cocoa.

Out of 37 companies in Southeast Asia that reported on deforestation management, only 21 disclosed information through CDP regarding deforestation-free supply chains. Among these, 10 companies made high-quality disclosures, indicating that at least one of their commodity supply chains was less than 90% free from deforestation and conversion.

Tomasz Sawicki, Head of Land at CDP, commented, “We recognize that over half of companies in Southeast Asia were transparent about their supply chains’ deforestation status. However, the number of disclosures is still low, and most companies are far from achieving deforestation- and conversion-free supply chains by 2025, the immediate target.”

Globally, 881 companies disclosed information, with about half (445) reporting on deforestation- and conversion-free progress. However, only 186 companies provided clear and appropriate information to justify their claims, and 64 companies worldwide claimed to have achieved deforestation- and conversion-free supply chains.

Leah Samberg, Lead Scientist at AFi, emphasized the importance of eliminating deforestation and conversion to meet climate and nature targets and comply with emerging regulations like the EU Deforestation Regulation. “Companies need to invest in effective monitoring and control systems to address deforestation and conversion associated with their operations and suppliers,” she said.

The report identified several issues undermining the reliability of company disclosures, such as overreliance on certification programs and incomplete information on activities, products, regions, or suppliers. Sawicki stressed the need for stronger evidence to support claims of deforestation-free supply chains.

The report urges companies producing or sourcing agricultural or forestry commodities to publicly communicate their intentions to achieve deforestation- and conversion-free supply chains and consider the impacts on all natural ecosystems. Companies should also monitor and engage their suppliers to ensure compliance with policies.

Samberg highlighted the importance of clear public policies, commitments, and supplier engagement in supporting disclosure and accelerating the transition to responsible production and trade.

The report concludes that concrete steps, such as comprehensive disclosures, transparent policy communication, and proactive risk assessment, are crucial for preserving natural ecosystems and ensuring supply chain integrity.

The CDP forests questionnaire, which tracks company performance on eliminating deforestation from agricultural and forestry supply chains, saw a record 1,152 companies disclosing in 2023.

It was the first year companies disclosed on deforestation- and conversion-free supply chains in a standardized format using indicators developed in partnership with the Accountability Framework initiative.

The “Time for Transparency: Deforestation-and Conversion-Free Supply Chains” report is available in both English and Bahasa Indonesia.