Deforestation creates material financial risks for companies, especially those that source agricultural commodities like beef, palm, soy and timber, and their investors It exacerbates systemic risk across portfolios by contributing to planet warming and global nature and biodiversity loss. New regulations, such as the European Union Regulation on Deforestation-Free Products, pose additional financial risks by requiring thousands of companies across sectors to comprehensively report that their products were not sourced from deforested land. To effectively reduce climate and nature risks, companies need to implement robust no-deforestation policies too ensure that their supply chains are free of deforestation.
Deforestation
Deforestation and the destruction of natural ecosystems contribute 11% of global greenhouse gas emissions and are a major drivers of biodiversity loss. Ceres supports investor action on deforestation and land conversion, including ways of integrating deforestation into climate- and nature-focused engagements with companies.
2025 To Be A Pivotal Year For U.S. Corporate Action On Deforestation
"Deforestation has the potential to disrupt businesses' supply chains, compromise productivity, and increase production costs. With more than half the world's economy reliant on nature and the services it provides, safeguarding natural ecosystems is critical to helping companies ensure the long-term viability of their operations and supply chains."
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At Ceres, we work with companies to make good on their commitments to end deforestation associated with commodity production in their supply chains. We also support investors looking to drive corporate action on deforestation and land conversion through our Food and Nature Working Group.
Food and Nature Working Group
As part of the Ceres Investor Network, the Food and Nature Working Group is a forum for investors focused on the challenges and opportunities in building a more resilient food sector and nature-positive economy.
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Ceres is part of the Accountability Framework initiative, a collective effort of diverse organizations dedicated to protecting forests, natural ecosystems, and human rights. As a member of the Steering Group, Ceres helps shape the initiative’s strategic direction and approves original framework materials. As a Supporting Partner, Ceres supports the use of the Accountability Framework among the companies, industry groups, financial institutions, and other key stakeholders it works with. Ceres also shares its own tools, resources, and implementation support with other initiative members to improve advocacy for clean and ethical supply chains.
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We produce cutting-edge research and reports to help investors and companies decouple business growth from the destruction of land-based ecosystems.
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