Corporate supply chains produce $906B in annual revenue linked to deforestation

Almost a quarter of global company revenues can be traced back to four commodities known to fuel deforestation — cattle products, palm oil, soy and timber products, according to a report from CDP. This figure represents $906 billion in annual revenues potentially at risk if corporations don't improve supply chain visibility.

For the report, CDP reached out to 821 global companies and asked them to share information on how they manage the risk associated with the sourcing and production of these deforestation-causing commodities, according to the report. In total, CDP received 201 responses — some from big name corporations like Cargill or Starbucks.

About 81 percent of agricultural producers — who create the commodities used throughout supply chains to make consumer products — said they have experienced deforestation-linked impacts in the past five years that have led to substantive changes to their business.

However, less than half (42 percent) of the companies reported evaluating how the availability or quality of commodities linked to deforestation could impact their growth strategy over the next five or more years, according to the report.

"This report is intended to help inform how companies are understanding and addressing deforestation risks in their operations and in those of their suppliers," said Paul Simpson, CEO of CDP. "It is intended to help ensure that the commitments many of them have made to eliminate deforestation from their value chains are met."

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