Freeing Supply Chains: Progress and Challenges in Achieving Deforestation
Almost 40% of global deforestation is because of the demand for commodities like palm oil, soy, beef, etc. As you can see, it is one of the major reasons. Sadly, we are already on the cusp of severe climate change. And, if we don’t pivot from these old habits, we will push the planet further into degradation.Â
However, some organizations are starting to recognize the importance of preserving our environment. Almost 64 companies have successfully eliminated deforestation and ecosystem conversion in at least one supply chain.Â
We know. The numbers aren’t really huge. But at least, they represent a vital start. Ahead, let’s learn more about companies cutting deforestation out of supply chains, the challenges they face, and more.
Current Data
As per the data from CDP, out of 881 companies, only half of them are seen making progress towards deforestation or conversion free-supply chain. But there’s more. Out of these, only 186 companies have clear and reliable information to back up these claims. As you can see, the numbers are extremely low.Â
This means, organizations have to make an effort to remain transparent about their efforts and have all the necessary information by their side to support their claims.
Challenges
Some of the challenges of cutting deforestation out of supply chains include:
Complex Supply Chains
Supply chains usually involve complex and multiple layers of suppliers. It’s not as straightforward as it seems. Therefore, it becomes difficult for an organization to trace the origins of the raw materials and even maintain compliance with environmental standards.
Sometimes, this information may not be easily available either. Also, in some cases, suppliers may not be forthcoming and readily disclose the information. So, this can create a huge gap.
Insufficient Regulation and Enforcement
There isn’t a universal law or standard practice when it comes to environmental regulations. In many regions, they are either weak or poorly enforced. So, deforestation or ecosystem destruction becomes easy and even goes undetected at times.
Cost and Resource Constraints
When it comes to embracing sustainable practices and overseeing compliance, it can be an expensive initiative. Also, it can require several resources. So, most small companies are overwhelmed by this and tend to push their sustainability efforts to the future. Â
Data Availability and Accuracy
Today, organizations want to look at current and reliable data on deforestation and ecosystem health. This is not readily available very easily or is outdated. So, this pushes sustainability to the backseat.
Wrapping Up
Challenges are a part and parcel of life. But that doesn’t mean we ignore the ongoing climate change where deforestation plays a crucial role.
Cutting it out of supply chains can be possible when you have the right approach. If there are challenges, solutions are also available.
Further, companies must share their plans and efforts to achieve supply chains free from deforestation and conversion. And, they must provide stronger proof to back up any claims they make.
Prachi, an accomplished Chief-Editor at The Sustainable Brands Journal, has 15+ years of experience in Europe, the Middle East, and India, managing 90+ global sustainable brands. She’s a prolific writer in sustainability, contributing to various publications. Prachi’s unwavering passion and expertise make her a recognized authority, driving positive change and inspiring a sustainable future.
