Some of the primary causes of deforestation include livestock and mining activities, along with the production of palm oil, rubber, soy, timber, cocoa, and coffee. Around 10% to 15% of global greenhouse gas emissions are partly driven by supply and demand dynamics that pose deforestation risks. In addition to unsustainable business practices, the production and distribution networks of these products are directly linked to negative impacts on soil, water, biodiversity, and climate change. Therefore, it is crucial for businesses to understand and manage their impacts on deforestation. Neglecting to manage deforestation risks can lead to significant revenue losses for companies and financial institutions.

CDP provides a platform for companies to transparently report their impacts, risks, and opportunities related to deforestation. The CDP Deforestation Program encourages companies to monitor and manage the production and use of key forest-risk commodities within their supply chains, such as palm oil, soy, timber, and beef. This process guides companies in developing and implementing strategies to halt deforestation.

The CDP Deforestation Program takes initiative on behalf of more than 746 investors, representing assets exceeding $136 trillion USD, and over 300 major purchasing companies. Through this comprehensive framework, companies can efficiently manage the risks and costs associated with activities that contribute to deforestation. The program also encourages companies to transparently report their progress in this area and their proactive commitments to restoring forests and ecosystems.

Since 2019, the CDP Deforestation Program has also begun collecting data on the impacts, risks, and opportunities related to biodiversity in the mining sector.

CDP believes that the private sector must take greater responsibility in addressing deforestation and calls on companies to take action on this critical issue.

For more detailed information about the CDP Deforestation Program, click here.

Click here to access the Global Deforestation Report 2024