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.

Alianza Team's Commitment to Zero Deforestation

At Alianza Team, we are committed to zero deforestation and are aligned with global efforts to protect forests. In 2023, ampliamos el alcance del monitoreo satelital para la cadena de suministro de aceite de palma al 100%, alcanzando el 92% del suministro de aceite de palma libre de deforestación. This achievement reflects our dedication to sustainable practices and responsible sourcing.

We are convinced that it’s not only important to know where our raw materials come from but also how they were produced in terms of environmental, social, and economic aspects. This is a differentiating factor for our businesses as we operate under the Responsible Sourcing Strategy, ensuring compliance with our commitments and global standards.

Actions to Improve Corporate Sustainability

There are several actions that companies can take to improve their sustainability and contribute to zero deforestation. Firstly, sustainable sourcing is paramount, wherein companies can procure raw materials from certified sustainable sources, such as forests certified by the Forest Stewardship Council (FSC), to ensure their products do not contribute to deforestation.

Secondly, supply chain transparency is essential to identifying and addressing deforestation risks. Companies must work closely with suppliers to ensure they meet sustainability standards.

 Engaging with stakeholders, including local communities, NGOs, and governments, is another key aspect that can help companies better understand the impacts of their operations and develop effective mitigation strategies. Finally, companies can also contribute to reforestation efforts by investing in tree planting initiatives and supporting forest restoration projects in their areas of influence.

Zero deforestation is a critical goal for companies looking to reduce their environmental impact and contribute to a more sustainable future. By adopting sustainable sourcing practices, ensuring transparency in their supply chains, and engaging with stakeholders, companies can play a significant role in protecting forests and combating deforestation. Alianza Team is committed to this goal, and we encourage other companies to join us in this important endeavor.

References

Ermgassen, E., Lima, M., Bellfield, H., Dontenville, A., Gardner, T., Godar, J., … & Meyfroidt, P. (2022). Addressing indirect sourcing in zero deforestation commodity supply chains. Science Advances, 8(17). https://doi.org/10.1126/sciadv.abn3132 

Fundación Natura Colombia. (2020). Recomendaciones para la implementación de Acuerdos Cero Deforestación en los sectores palmicultor y ganadero en Colombia. https://natura.org.co/wp-content/uploads/2021/03/CDP-policybrief-colombia-ES-rvFINAL.pdf 

Global Forest Watch. (s.f.). United States. https://www.globalforestwatch.org/ 

Newton, P., & Benzeev, R. (2018). The role of zero-deforestation commitments in protecting and enhancing rural livelihoods. Current Opinion in Environmental Sustainability. https://doi.org/10.1016/J.COSUST.2018.05.023

Leijten, F., Sim, S., King, H., & Verburg, P. (2020). Which forests could be protected by corporate zero deforestation commitments? A spatial assessment. Environmental Research Letters, 15. https://doi.org/10.1088/1748-9326/ab8158

Meyer, C., & Miller, D. (2015). Zero Deforestation Zones: The Case for Linking Deforestation-Free Supply Chain Initiatives and Jurisdictional REDD+. Journal of Sustainable Forestry, 34, 559 – 580. https://doi.org/10.1080/10549811.2015.1036886

Gollnow, F., Cammelli, F., Carlson, K., & Garrett, R. (2022). Gaps in adoption and implementation limit the current and potential effectiveness of zero-deforestation supply chain policies for soy. Environmental Research Letters, 17. https://doi.org/10.1088/1748-9326/ac97f6

Ermgassen, E., Ayre, B., Godar, J., Lima, M., Bauch, S., Garrett, R., Green, J., Lathuillière, M., Löfgren, P., MacFarquhar, C., Meyfroidt, P., Suavet, C., West, C., & Gardner, T. (2020). Using supply chain data to monitor zero deforestation commitments: an assessment of progress in the Brazilian soy sector. Environmental Research Letters. https://doi.org/10.1088/1748-9326/ab6497

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