As rainforest conservation is globally aknowledged as key to adress the future of humanity, companies are overwhelmed with information on both private and public initiatives aimed at ensuring a sustainable exploitation of rainforest commodities. Misguided sourcing choice will obviously make the contribution of a given company to collective effort less efficient but also will expose company and its brand to devastating reputational risks. A comprehensive due diligence is therefore essential.

1. TROPICAL DEFORESTATION AND
BRAND REPUTATION RISK
DEFORESTATION IN TROPICAL AREA 1990-2015
10% of forest loss in tropical area (approx. 2 000 000 sq. km.)
.
= 60% of USA forest area = 100% of EU forest area
EXPORTABLE COMMODITIES LOCAL POPULATION NEEDS
INFRASTUCTURES
OTHER
ORIGIN OF DEFORESTATION DEPENDS ON COUNTRIES
WITH SIMILAR NEGATIVE EXTERNALITIES
15%
Biodiversity Water Cycle Greenhouse Gas People
PALM
SOY
OTHER
TIMBER
MINE
CATTLE
LAND
ROAD
FIRE
DAM
FIREWOOD
Knowledge of the supply
chain : Deforestation statistics and specificities of the country
Emblematic endangered species....
Regulation of management of public forests ,
Effective enforcement (moratorias, confiscation, lawsuits....)
and clear responsibility of various national administrations…
Level of bribery , political stability, ….
Land rights regulation : recognition of forest as the ancestral
lands of indigenous people.
Involvement in international programs ‘ (UN REDD+....) , NGO
programs, educational programs...
...
Country of origin :
Countries of origin
Upstream suppliers of every
“tropical forest” raw material.
DUE DILIGENCE PLAN FOR BRAND REPUTATION RISK
Suppliers :
Sustainable commodities :
Does the program include a real
product certification ?
With a complete CoC system ?
Is it a forest conservation ,
management or restoration
standard ?
Does the standard depend on
country or propose different
certification levels ?
Controversial issues about the
program ?
Does the program cover every
aspect of sustainability and
consumers expectations ?
Who owns the program ?
...
Detailled organization (group, subsidiaries, countries...)
Complete activity scope
Avalaible certifications
Commitment to sustainability (CSR reports ...)
Controversies, lawsuits and other potential issues
...
25%
15%
1%
Of mankind
belongs to
traditional forest
communities
Of GHG
emissions due
to deforestation
Of tropical forest
species already
extinct
Of global
freshwater is
located in
tropical forest
65%
70%
90%
6
90%
40%
80%
70%
10%
of logging in Dem.
Republic of Congo
76%
1,25%
70%
of Brazil electricity
supply
of burning in Amazon
occurred in El Niño years.
of deforestation within
50 km of large roads
of deforestation in
tropical Asia
of Peru’s timber comes
from illegal logging
of palm oil expansion in
Peru = deforestation
of crops in the Amazon
= recent deforestation
of LATAM deforestation=
commercial agriculture,
of deforestation in
Africa
of deforestation in the
Amazon basin