Zero Deforestation: A Key Focus for Companies

Each year, approximately 5 million hectares of forested areas worldwide are lost due to tropical deforestation, primarily driven by the food industry. The production of meat, soy, and palm oil is responsible for 60% of this type of deforestation. In response to this concerning trend and the growing global awareness surrounding this issue, zero deforestation commitments (ZDC) have emerged among companies. These commitments aim to eliminate deforestation from supply chains, reduce greenhouse gas emissions, promote more sustainable production practices, and combat climate change.

Multiple perspectives suggest that collaboration and commitment from relevant stakeholders, such as producers, companies, and consumers, are key to achieving positive change in forest conservation and environmental protection. Through coordinated efforts, addressing this challenge and moving towards a more sustainable future are attainable.

The Impact of Zero Deforestation

Deforestation contributes to climate change by releasing large amounts of carbon dioxide into the atmosphere. It also leads to biodiversity loss, as forests are home to a wide range of plant and animal species. Additionally, deforestation can have negative social impacts, such as the displacement of communities and the loss of livelihoods for local populations.

On the other hand, as the focus shifts towards achieving sustainability in food production, halting or preventing deforestation is a necessary initial step. In Europe, for instance, to enhance conditions in the supply chain, the European Union Deforestation Regulation (EUDR) came into effect in June 2023. This regulation mandates that commodities imported into the EU market must be deforestation-free and comply with the environmental legislation of the production country. It applies to various commodities such as livestock, cocoa, coffee, palm oil, rubber, soy, and timber.

In other regions, like the United States, it has been noted that deforestation has reached critical levels, primarily due to urbanization. In fact, in 2022, urbanization was responsible for the loss of 97.1 kilohectares of forest, while deforestation associated with raw materials caused the loss of 18.7 kilohectares during the same year.

The Role of Companies

Companies have a crucial role to play in combating deforestation. By implementing sustainable sourcing practices and ensuring that their supply chains are free from deforestation, companies can help protect forests and reduce their environmental impact. This not only benefits the planet but also enhances their reputation and reduces the risk of regulatory and reputational issues.

Furthermore, achieving zero deforestation is now an essential component if food and raw material-producing companies wish to differentiate themselves within the sector. In response, there is a suggestion to strengthen corporate commitments by considering them on a sectoral or supply chain basis, with jurisdictional pilots and the integration of local institutions. This approach would enable addressing broader social and environmental issues.

Continuing with actions that companies can take, it is important to strengthen and support farmers —as primary links in the supply chains— to conduct monitoring and reporting. This will allow companies to demonstrate traceable and verifiable information in their production chains.

Regarding the end consumer, agreements established by companies should clarify what constitutes a zero deforestation product and supply chain so that consumers can recognize them. An informed market can also drive the path towards zero deforestation.

References

Clough, Y., Faust, H., & Tscharntke, T. (2009). Cacao boom and bust: sustainability of agroforests and opportunities for biodiversity conservation. Conservation Letters, 2. https://doi.org/10.1111/j.1755-263X.2009.00072.x

Ercin, E., Kaune, A., Karaman, C., & Orlov, A. (2024). Unraveling cross-border climate risks through climate storylines: An example from Europe’s cocoa industry. Environmental And Sustainability Indicators, 100359. https://doi.org/10.1016/j.indic.2024.100359

Beg, M., Ahmad, S., Jan, K., & Bashir, K. (2017). Status, supply chain and processing of cocoa – A review. Trends in Food Science and Technology, 66, 108-116. https://doi.org/10.1016/J.TIFS.2017.06.007

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Juliana Duque Vasquez

Responsable de marketing en Alianza Team.

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