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90% of major forest, land and agriculture companies that have committed to net-zero could be at risk of missing their climate commitments due to lack of action on deforestation. A new report by Nigel Topping a UN Climate Change High-Level Climate Champion outlines that the world can’t reach net-zero by 2050 without ending deforestation this decade.
Amazon deforestation soared by 22% in the 12 months to July according to Brazil’s space agency, whilst the WWF places the Netherlands, Germany, Italy, Spain and the UK responsible for 80% of deforestation caused by EU imports of raw materials. As for deforestation per capita, the Netherlands had the highest rate in the EU at 18 square meters annually per person despite being one of the few nations to adopt a circular economy.
Following a consultation by the UK Department for Environment, Food & Rural Affairs the government will seek to implement due diligence provisions in the Environment Act through secondary legislation.
Governments across the world are looking at ways to halt deforestation. Ghana and Cote d’Ivoire have agreed to create national sector-wide cocoa traceability systems as part of their sustainability alliance with the EU. Through a system of traceability the governments are committed to connect eradicate deforestation and child labour.
In October 2021, the UK launched the Net Zero Strategy: Build Back Greener which outlines how the UK will act to achieve this, including halting deforestation. Procurement within the public sector can be a lever for deforestation and achieving net zero. The UK government working in collaboration with procurement teams and suppliers is critical to increase the pace for change.
Since 1st January 2021, all central government procurements are required to evaluate social value as at least 10% of the criteria used to award the contract. Examining your own supply chain to identify risks including deforestation, modern slavery and human right violations are key to maximising ambitions to achieving net zero.
The common theme across legislation and policy across the globe is increasing awareness of critical nature of supply chains and procurement in supporting government policies to limit climate change and tackling areas of inequality and other illicit activity. However, for procurement teams this requires far greater supply chain transparency, understanding of supply chain risks and effective planning and actions to tackle these areas.