Many of the world's leading consumer goods firms are 'off track' to achieve sustainable consumption and production in their supply chains by the end of the next decade, a new study by international non profit CDP has found.
In addition, the study claims that commitments to meet zero net deforestation by 2020 are now 'impossible'.
No Woods For The Trees
The No Woods For The Trees report analysed 22 firms, including food manufacturers, personal and household goods manufacturers and fast food retailers.
It found that despite the zero net deforestation target set by the Consumer Goods Forum in 2010, to which many major businesses signed up, just eight firms were found to be deploying comprehensive forest and land-use management practices, such as regenerative agriculture and soil management.
Taking The Initiative
Danone topped the list in terms of forest sustainability efforts, followed by Nestlé, L'Oréal, Unilever, Kelloggs and Mars.
The study found that companies such as Unilever, L’Oréal and Mars are ramping up efforts to eliminate deforestation from their supply chains, through product innovation, direct agreements with small agricultural holders and a change in supply chain models.
However, despite their efforts, the CDP said that the consumer goods sector is still 'particularly exposed' to commodities linked to deforestation, including palm oil, soybean and cattle in terms of product formulation, and paper and pulp in terms of packaging.
CDP’s research shows that just three companies have achieved 100% certification in palm oil and just one in timber.
Palm Oil
“When it comes to deforestation and consumer goods, the go-to is palm oil. Revenue exposure due to palm oil can be significant," commented Carole Ferguson, Head of Investor Research, CDP.
"Some 45% of companies reported revenue dependencies of at least 20% on palm oil. But leading global consumer goods companies need to look closer at all the hidden risks they are running across their supply chains and scratch below the surface.
"As we approach our planetary boundaries much more needs to be done upstream. These companies are well placed in the value chain to act and fast. That starts with full and deep transparency of supply chains for companies to hold producers to account and provide consumers with full sourcing and product visibility.”
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
