Nestlé, PepsiCo, Unilever Are Among 10 of the Leading Consumer Brands Driving Global Deforestation

From The Observatory

Since the early 2000s, the world has been losing large swathes of tropical forests at an alarming rate, with an average annual loss of 3 to 4 million hectares. This trend is far from the goal of zero deforestation by 2030, set by 145 countries during the COP26 climate summit. Deforestation not only harms local environments but also worsens the climate crisis by increasing carbon emissions. Land use changes, primarily deforestation, contribute significantly to global greenhouse gas emissions.

Solving the climate crisis requires collaboration among all stakeholders, including governments, industries, and communities. While national commitments are crucial, non-state actors like industries, financial institutions, cities, and regions also play a vital role. However, major multinational brands continue to pose a challenge, as they profit from destructive practices despite pledges to improve their supply chains.

Deforestation and violence against land defenders are on the rise globally. Despite efforts like the No Deforestation, No Peatlands, No Exploitation (NDPE) policies, deforestation increased by 3.2 percent worldwide in 2023. Moreover, there were 227 lethal attacks on land and environmental defenders in 2020.

Reports by organizations like the Rainforest Action Network (RAN) reveal that many major corporations are failing to address their role in deforestation and human rights abuses. Although some progress has been made with policies like NDPE, implementation remains incomplete, particularly in regions like Indonesia and Malaysia.

To combat deforestation effectively, comprehensive NDPE policies covering all forest-risk commodities are essential. Brands must set ambitious, time-bound targets and ensure third-party verification of compliance across their entire supply chains. However, as of 2023, no brand has achieved an ‘A’ grade in evaluations, indicating the need for significant improvement.

Consumers, investors, and activists have the power to hold brands accountable and drive meaningful change towards sustainable and equitable supply chains. With growing global awareness of environmental and human rights issues, there’s increasing pressure on brands to demonstrate genuine commitment to ending deforestation and respecting human rights.

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