Deforestation: $906B At Risk Via ‘Domino Effect’ On The Supply Chain

By Garry Rogers @Garry_Rogers

GR:  Awareness of the coming disaster is creeping up on the perpetrators. Forecasters predicted an economic decline long ago. It results from the careless treatment of the elements of natural ecosystems as commodities and from the short-sighted business imperative of “growth at all costs.”  Read more here.

“No wonder Environmental, Social and Governance (ESG) risk has lain hidden for so long. Now that businesses are regularly being encouraged to look closer at their supply chains and disclose it, the implications are alarming: for businesses, investors and the planet. A new study released today reveals that, on average nearly a quarter (24%) of global company revenues depends upon four commodities linked to deforestation: cattle products, palm oil, soy and timber products. That translates, it says, to $906 billion in annual turnover potentially at risk.

A view of recently land clearing for palm oil plantation of the peatland forest inside Singkil peat swamp Leuser ecosystem, habitat of Sumatran orangutan (Pongo abelii) in Iemeudama village on November 13, 2016 in Trumon subdistrict, South Aceh, Aceh province, Indonesia. The Orangutans in Indonesia have been known to be on the verge of extinction as a result of deforestation and poaching. Indonesia approved palm oil concessions on nearly 15 million acres of peatlands over the past years and thousands of square miles have been cleared for plantations, including the lowland areas that are the prime habitat for orangutans. Photo by Ulet Ifansasti/Getty Images

“This $906 billion figure has been calculated by looking at the percentage of revenues publicly listed companies say is dependent on the commodities they reported on.

“The companies include big names, like Cargill, Kraft Heinz Company, Starbucks and Marks & Spencer, and global commodity traders Archer Daniels Midland and Bunge. CDP, formerly Carbon Disclosure Project, is an international, not-for-profit organization. Its new report Revenue at risk: why addressing deforestation is critical to business success analyzes data disclosed by 187 companies in 2016 – often for the first time – on their deforestation risk management strategies.

“Who is behind the report? Some 365 investors representing $22 trillion. Deforestation leads to some 15% of global greenhouse gas emissions, as Paul Simpson, CEO of CDP, points out in his foreword to the report. Addressing deforestation is therefore critical to delivering a sustainable post-2020 global economy.” –Dina Medland (Continue reading:  Deforestation: $906B At Risk Via ‘Domino Effect’ On The Supply Chain)