Forests in danger.. The role of the private sector in combating deforestation

Forests in danger.. The role of the private sector in combating deforestation

Despite increasing global awareness of the importance of forests in combating climate change and preserving biodiversity, their removal is still accelerating at alarming rates. Forests are not just green spaces, but rather a vital shield that absorbs huge amounts ofcarbon dioxide, and provides necessary habitats for millions of living organisms. Which makes it an essential pillar for the stability of ecosystems and the sustainability of life on Earth.

As this environmental crisis worsens, it has become clear that governments alone cannot confront the problem without the effective participation of all actors, especially the private sector. Large companies that rely on raw materials coming from areas subject to deforestation are facing increasing pressure to take immediate action.

In order to search for effective solutions to confront this problem,Earth Guards In this article, I will discuss the most important effective strategies that companies can adopt to play their role in reducing deforestation and ensuring a more sustainable future. So keep reading.

Corporate responsibility in combating deforestation

Waiting for governments to impose more restrictions is no longer an option. Rather, companies must assume their responsibility and take the initiative to adopt strict strategies to confront this problem. This includes reconsidering supply policies, adopting sustainable supply chains, and investing in innovative environmental solutions. To ensure the continuity of natural resources and reduce the environmental impact of its activity.

In this context, Mighty Earth (a global organization for defending the environment, protecting nature, and ensuring a stable climate that allows all forms of life to flourish) warned in a statement that the delay poses a serious threat to the world’s forests, which are already suffering from severe pressure, and the 2024 Forest Declaration Evaluation Report stated that 15.74 million acres – equivalent to 9 million football fields – of forests were lost during 2023 alone.

Towards achieving comprehensive sustainability

Combat deforestation is a major challenge that requires real commitment from companies, especially those that rely on raw materials coming from areas subject to deforestation, such as soybeans, beef, palm oil, paper, cocoa, coffee and rubber. Despite repeated promises of sustainable policies, only a few companies have set clear deadlines for deforestation-free pledges covering all these commodities, according to the Ceres 2023 Deforestation Scorecard.

What is noteworthy is that some companies have made significant progress in developing more stringent plans, but most companies remain opaque about their progress in complying with the European Union Deforestation Regulation (EUDR) standards; Which increases environmental risks.

It is worth noting here that it is not enough for companies to declare their commitment to protecting forests without clear implementation mechanisms. They must also establish accurate traceability systems for supply chains that ensure that all their products are free of deforestation. They can benefit from tools such as the Accountability Framework Initiative, which provides a clear roadmap to address all commodities that cause deforestation.

It is worth noting that monitoring supply chains is no longer sufficient to ensure environmental sustainability. Rather, a more comprehensive approach is required that prevents deforestation at its roots. It is not enough for the final products to be sustainable while some stages of production remain linked to environmental destruction. Therefore, environmental commitment must include all actors in the supply chain, so that companies only deal with suppliers committed to protecting forests.

Amanda Horowitz, Executive Director of the Mighty Earth Organization, stresses that companies must take a decisive stance to stop dealing with any supplier involved in deforestation, regardless of the type of commodity it provides. This requires serious investments in restructuring purchasing processes and close cooperation with suppliers to ensure full compliance with environmental standards.

Lessons from experiences combating deforestation

Some regions have seen marked improvements in anti-deforestation efforts, such as Indonesia, where private sector commitments have led to a sharp decline in palm oil and paper-related deforestation. But that is not the case in Latin America, where deforestation continues at alarming rates due to soybean farming and cattle ranching.

According to Rodrigo Botero, director of the Fundación para la Conservación y el Desarrollo Sostenible in Colombia, 13% of the Amazon forests have disappeared due to illegal deforestation, which is often linked to organized crime networks.

These challenges are not limited to agricultural activity only, but studies indicate that deforestation in Central America is being exploited to achieve huge profits from the drug trade, as forested lands are converted into livestock farms funded by drug profits, according to Kendra McSweeney, a professor of geography at Ohio State University.

In light of these challenges, companies must make critical decisions, such as stopping dealing with suppliers involved in deforestation, increasing levels of transparency, and investing in sustainable agricultural alternatives that reduce the need to destroy forests.

Expanding forest restoration projects

The fight against deforestation is not limited to stopping destruction operations, but also includes restoring and replanting affected areas. Dirk van de Put, CEO of Mondelez, confirms that companies need to follow a landscape-based approach that combines protection efforts with reforestation projects. The Forest Positive Coalition  initiative is a prominent example of this approach; It supports corporate investments in community projects aimed at restoring forests and enhancing their environmental role.

In addition, technology plays an essential role in monitoring environmental changes and ensuring compliance with environmental laws. For example, the Forest Conservation Fund relies on satellite technologies, such as Starling Satellite Monitoring; To monitor forest developments and evaluate compliance with sustainable measures.

Therefore, expanding the use of these technologies, in parallel with strengthening cooperation with local communities, can contribute to finding permanent solutions to preserve forests, and make the sustainability of forest cover a tangible reality and not just a slogan.

Towards more sustainable solutions

Enhancing artificial intelligence and big data analysis technologies can play a key role in combating deforestation, by improving transparency in supply chains and monitoring environmental violations. In light of tightening environmental laws and increasing societal pressures, technology and environmental innovation have become essential pillars of companies’ commitment to sustainability standards.

In addition, the rise in investment in the green economy is pushing towards the development of sustainable raw materials and technologies that reduce dependence on resources that cause deforestation, which directly contributes to combating deforestation and promoting sustainable solutions. With increasing challenges, adopting environmentally friendly business models has become an indispensable option.

From this standpoint,Earth Guards believes that addressing deforestation is an essential part of achieving the Sustainable Development Goals (SDGs), and this cannot be achieved without real cooperation between governments, the private sector, and communities, to ensure the sustainability of natural resources and protect the planet for us and for future generations.