Turning Collective Commitment into Action: Assessing progress by Consumer Goods Forum members towards achieving deforestation-free supply chains
New report from the Global Canopy Programme and CDP concludes that Consumer Goods Forum members outperform non-members on moving towards zero deforestation. However, further action across commodities is required to realise the CGF’s collective commitment to transition to deforestation-free supply chains by 2020.
Press Release, 7th June, 2016, Oxford, UK: The Global Canopy Programme (GCP) and CDP today launched a new report titled ‘Turning collective commitment into action: Assessing progress by Consumer Goods Forum members towards achieving deforestation-free supply chains’. It tracks the progress made by Consumer Goods Forum (CGF) members towards the removal of deforestation from global commodity supply chains such as palm oil, timber, beef and soya. It draws upon data from GCP’s Forest 500 and CDP’s forests program (2015 results), two initiatives collaborating to identify, assess and engage key corporations to accelerate progress towards deforestation-free commodity supply chains.
Collectively, members of the CGF hold significant power over supply chains which are driving deforestation. They therefore have significant leverage to affect the business practices of upstream companies, by putting in place and implementing robust deforestation-free procurement policies. For example, the 55 CGF members assessed in the Forest 500 control 37.3% of the cosmetics and personal care sector. The CGF’s collective 2020 zero net deforestation commitment has helped to highlight and mainstream issues surrounding deforestation.
“The collective CGF commitment highlights current momentum around the move towards deforestation-free commodity supply chains. While many CGF members have taken action and put in place commodity-specific procurement policies, more companies still need to do so in order for the commitment to be fulfilled. Positive change can also be driven by CGF members looking beyond palm oil to mitigate risks in their other commodity supply chains – particularly soya and cattle products.”
Tom Bregman, Project Manager – Drivers of Deforestation, Global Canopy Programme
The ‘Turning collective commitment into action’ report found that:
- 89% of 44 CGF companies disclosing to CDP’s forests program acknowledge at least one deforestation-related risk in their supply chains that has the potential to generate a substantive change in business operations, revenue or expenditure.
- Of the 55 CGF members assessed in the Forest 500, 14 companies (25% of those assessed) have made zero or zero net deforestation commitments that apply across the commodities that they procure; this is ten times higher than non-CGF companies.
- Of those companies without zero or zero net commitments across all their commodities, CGF members are also more likely to have zero or zero net deforestation commitments in place for some of the commodities that they procure.
- In the 2015 annual Forest 500 ranking, CGF members scored twice as many points as non-members. Furthermore, 20 (50%) of the 40 companies scoring more than 60 points out of 100 on the Forest 500 ranking are CGF members, and all six companies that score more than 80 points out of 100 are CGF members.
Greater auditing of suppliers by CGF members is needed to achieve meaningful progress towards deforestation-free supply chains. For some commodities, such as soya, less than 20% of CGF manufacturers and retailers disclosing to CDP’s forests program state that they audit their suppliers, whereas for timber products the figure is 56%.
“Tackling deforestation in their supply chains should be a top priority for companies concerned with future-proofing their business for the move to a low-carbon economy. Consumer Goods Forum members are in a powerful position to drive the transition to deforestation-free supply chains. Whilst it is encouraging to see that some are leveraging their power, now is the time for this commitment to be translated into concrete action across the board.”
Katie McCoy, head of forests at CDP
Rachel Mountain, Head of Communications, Global Canopy Programme,
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Sarah Savage, Communications Manager, CDP
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