Ten years ago, the Consumer Goods Forum (CGF) made a commitment to end deforestation in member companies’ supply chains by 2020. As 2020 approaches, the companies will inevitably miss the deadline. An international coalition of NGOs called this out CGF members and relayed the following expectations in this open letter:
• Communicate a mandatory requirement ensuring suppliers comply with ‘No Deforestation, No Peat and No Exploitation (NDPE) commitments.
• Ensure human rights are respected and compliance with international standards of Free and Prior Informed Consent (FPIC).
• Establish comprehensive, proactive, and transparent monitoring systems that rapidly detect non-compliance across supply chains and require implementation of the High Carbon Stock Approach (HCSA) for agricultural development involving land-use change. Assessments should use the Integrated High Conservation Value (HCV)- HCSA Assessment Manual and be approved by the High Conservation Value Resource Network (HCVRN) Quality Review Panel before development
• Publish guidelines to address non compliances, including thresholds for suspension and grievance mechanisms
• Provide incentives and support to upstream suppliers to manage risk
• Publish public facing reports on progress

The World Economic Forum recently published research suggesting consumers in a few key emerging market producer countries (Indonesia and Brazil) and importing countries (China and India) together account for 40% of global consumption of the four commodities most associated with tropical deforestation—soy, beef, palm, and wood products. The authors project that by 2025 demand for these commodities within these four countries could increase by 43%, resulting in forest areas equivalent to the size of Nigeria being cut down every. Increasing demand for meat and calorie-rich foods, regulatory changes, and shifts in constraints for domestic production will all be key factors in fueling demand in these emerging market economies.

Greenpeace have released a scorecard on 14 companies' progress on eliminating deforestation from their supply chains. Nestle and Ferrero scored the highest and Colgate-Palmolive, Johnson & Johnson and PepsiCo scored the lowest. Greenpeace has encouraged these companies to work with an implementation partner to recognise their commitments as well as seek third party verifications on their progress.

The think tank Innovation Forum held a two-day conference in Washington DC entitled “How business can tackle deforestation” attended by 160 representatives from companies, NGOs and investors. Whilst multiple major consumer goods companies have declared their commitments to achieving zero deforestation in their supply chains many others have raised concerns over the term and what the policy actually means in practice.
Rainforest Alliances’ recent position paper, ‘Halting Deforestation and Achieving Sustainability’ warned that zero deforestation commitments may not be enough to protect the world’s forests, due to two reasons. Firstly, though many major companies have signed up for these commitments, many other producers and buyers will not. These companies will continue to rely on deforestation to produce their goods, unless a way is found to address underlying issues, such as growing worldwide demand for forest products. Secondly, focusing solely on deforestation risks drawing attention away from other business practices within the commodities supply chain which may deserve equally urgent attention e.g. water scarcity and labour laws. In addition, the use of ‘zero deforestation’ as a catchphrase is problematic because there remains no clear agreement over what the term means. Rainforest Alliance emphasises the need for greater education, auditing and transparency so that consumers know the impact of what they are buying and are able to trust companies’ sustainability claims. Though a commendable step in the right direction, ‘zero deforestation’ commitments need to be backed up with comprehensive action plans if they are to deliver credible results.

For decades, mahogany, ebony, rosewood and other rare tropical hardwoods have been extensively logged to produce valuable wood products, particularly guitars and other instruments. Increasingly aware of the impacts to forests and communities from over-harvesting, many instrument manufacturers have taken steps to make their supply chains more sustainable. Now, musicians are joining the call to make sure guitars and other instruments are made from legal, sustainably sourced wood. Last week the Environmental Investigation Agency and REVERB released a video featuring artists such as Jason Mraz and Michael Franti urging consumers to find out where their wood comes from.

A new report by Forest Trends, a US based NGO, found out that around five football fields of tropical forest have been illegally cleared every minute between 2000 and 2012, which losses have been driven by consumer demand for beef, leather and timber in Europe and US. The values of this trade in commodities including timber, leather, beef, soy and palm oil, accounting for $61bn a year. The majority of the illegal deforestation for commercial agriculture has been in Brazil and Indonesia. The local governments are lack of capacity to enforce laws to against illegal logging. Report found that licences and permits to cut the trees are often acquired through corruption. Authors believe that consumer countries in EU could have done more to tackle the problem. Strong regulations rather than voluntary actions is the better solution. The biggest concern for campaigners now is the spread of illegal deforestation to new countries in Latin America, Africa and Asia.

The founder of the independent news site dedicated to rainforests points to a slowing deforestation rate in Brazil, new initiatives extending our capacity to monitor forests and zero deforestation commitments from the private sector as reasons for optimism. He thinks that most consumers aren’t aware of the issues to the extent it affects their purchasing decisions, except in particularly egregious cases. And he says that NGO campaigns targeted at brands are effective in that these brands are more likely to change their policies quickly than governments and consequently the brands will push governments to reward their commitments by forcing the laggards to catch up.

A recently published paper in the journal Science assesses how Brazil managed to reduce its deforestation rates by 70% over the course of a decade and points to a three-stage process in which bans, better governance in frontier areas and consumer pressure on companies worked, if fitfully and only after several false starts. While the Brazilian Forest Code from the mid-1990s mandated that 80% of farm land had to be set aside as a forest reserve, deforestation rates reached their highest as the code was not enforced. However, from 2005 Brazil’s President Lula da Silva made halting deforestation a priority which led to better cooperation between enforcement agencies and public prosecutors. At the same time, improvements in the efficiency of cattle breeding, a fall in export earnings from soybeans and an NGO campaign to boycott Brazilian soybeans caused deforestation to plummet. Then in 2009, once soybean expansion resumed, the government focused its efforts on the counties with the worst deforestation rates and banned them from getting cheap credit until the rates fell. Other reinforcing factors included a proper land registry, a cattle boycott, an amnesty for illegal clearances before 2008 and money from a special $1 billion Amazon Fund financed by foreign aid.

The environmental organization says the 60-foot banners on P&G's two towers were in protest of the consumer products company's use of palm oil from a supplier that Greenpeace says is linked to tropical forest destruction in Indonesia.

The UK government is backing the Tropical Forests Alliance (TFA) 2020. TFA 2020 is a business-led initiative launched by the US government and the Consumer Goods Forum (CGF) which is a group of over 400 retailers and manufacturers. Although there are no regulatory implications, TFA 2020 aims to provide a forum ‘in which to share best practice with major private companies’ committed to adopting ‘sustainable supply chains’ and to ‘encourage other governments and companies to take similar steps’.

The London-based Environmental Investigation Agency (EIA) has published a report accusing China, the world’s biggest importer and consumer of timber, of fuelling the trade in illegal timber with at least a tenth of imports coming from illegal sources. Over 75 per cent of China’s timber imports are processed for domestic consumer markets and are not affected by legislation in the US and EU. The EIA urges China to bring in similar legislation to ensure real progress in curbing the trade in illegal logging.

The US Government and 20 of the world’s largest companies from the Consumer Goods Forum (CGF) have announced a partnership to eliminate deforestation from supply chains by 2020, starting with palm oil, soy, paper and beef. Production of these four commodities in four countries alone causes 50% of global deforestation. Leaders from the CGF companies, the US and other governments and NGOs will meet in the Autumn to identify practical actions to achieve the deforestation commitment.