COMPANIES cannot afford any more delay in tackling deforestation across supply chains, with forest-related risks identified at almost US$80 billion (RM351.6 billion) by 211 disclosing companies, said CDP, a global non-profit organisation that helps companies and cities disclose their environmental impact. 

CDP global forests and land director Thomas Maddox said billions of people are relying on forests for their livelihoods and the latter plays a crucial role in climate mitigation and adaptation.

“However, deforestation continues almost unchecked. Last year, a further 11 million hectares of tropical forest were lost due to large-scale production of agricultural commodities.

“Companies are starting to respond but we need more investors to demand the eradication of deforestation from their portfolios. We need more companies to commit and deliver deforestation-free supply chains,” he said in a statement today.

Citing a 2021 report by the World Resources Institute, CDP said Malaysia experienced a decline in primary forest loss for four years in a row. 

“Thus far, the Malaysian government is optimistic that it would be able to achieve its Nationally Determined Contributions of reducing carbon intensity by 45% by 2030.

“However, more action is needed to ensure the country is able to achieve its goals,” it said. 

Even though companies from Southeast Asia have been taking more meaningful action compared with their global peers, many are still demonstrating notable implantation gaps, said the CDP. 

“Only 2% of companies have robust no-deforestation/no conversion commitments, and only 23% can trace more than 90% of one commodity to a municipality or its equivalent level. 

“Additionally, only 25% of companies disclosed that they are providing smallholders with technical or financial assistance and only 33% are providing similar assistance to direct suppliers,” it said. 

Meanwhile, CDP Southeast Asia and Oceania director John Leung said that companies still need to go a lot further and faster to ensure pledges made across the region at COP26 will be met.

“We know that biodiversity and protecting forests are vital to ensure we reach a net zero and nature-positive future,” he said. – Bernama, May 25, 2022.