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Industries and sectors driving deforestation: what you need to know

We recently did a deep-dive into the industries and sectors driving deforestation. We were curious: do all sectors contribute to deforestation? And which industries have the biggest impact? 
We learned that<a href="https://forest500.org/"> every six seconds</a>, an area of forest the size of a football pitch is destroyed to make way for the production of commodities such as soy, beef, timber and palm oil. Here’s the full scoop.

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Forests cover <a href="http://www.fao.org/3/ca8753en/CA8753EN.pdf">31% </a>of the land on our planet and they are critically important for stabilising our climate. They regulate ecosystems, protect biodiversity, support livelihoods, and play an important role in taking carbon dioxide out of our atmosphere. Approximately <a href="https://www.iucn.org/resources/issues-briefs/forests-and-climate-change#:~:text=Approximately%202.6%20billion%20tonnes%20of,America%20%E2%80%93%20offer%20opportunities%20for%20restoration.">2.6 billion tonnes of CO2</a>, one third of the CO­2 released from burning fossil fuels, is absorbed by forests every year, and the <a href="https://www.ipcc.ch/srccl/">2019 IPCC special report of Climate Change and Land</a> stated that planting forests and protecting existing forests is a key component of all pathways seeking to  limit average global temperature increase to 1.5°C. 
Forests are also home to <a href="https://www.iucn.org/resources/issues-briefs/forests-and-climate-change#:~:text=Approximately%202.6%20billion%20tonnes%20of,America%20%E2%80%93%20offer%20opportunities%20for%20restoration.">80% </a>of the world’s terrestrial biodiversity, and provide critical ecosystem services that are important to both people and the planet, such as healthy soils, clean water sources, erosion control, crop pollination, and flood control.
Globally about <a href="https://www.un.org/esa/forests/wp-content/uploads/2018/04/UNFF13_BkgdStudy_ForestsSCP.pdf">1.6 billion people</a> (nearly 25% of the world’s population) rely on forests for their livelihoods, many of whom are among the world’s poorest. Over<a href="https://www.un.org/esa/forests/wp-content/uploads/2018/04/UNFF13_BkgdStudy_ForestsSCP.pdf"> 200 million people</a>, including many indigenous people, directly depend on forests for their survival. Forests produce more than 5,000 types of wood-based products and generate an annual gross value add of just over<a href="https://www.worldbank.org/en/topic/forests"> $600 billion</a>.

As we’ve seen, forests are critically important and must be protected. However, they are being cleared and degraded at a rapid rate, causing carbon loss as well as negative impacts on ecosystem services. Deforestation is the second largest source of anthropogenic emissions on the planet, <a href="https://www.theguardian.com/environment/2022/feb/28/deforestation-emissions-far-higher-than-previously-thought-study-finds-aoe">second only to the burning of fossil fuels</a>, causing <a href="https://www.worldwildlife.org/threats/deforestation-and-forest-degradation">15% of global greenhouse gas emissions</a>.
The clearing of forests also leads to the loss of habitat, and brings humans and wildlife into closer contact, increasing the risk of transmission of infectious diseases such as COVID-19, Ebola and HIV from animals to humans.
Global forest loss continues <a href="https://research.wri.org/gfr/forest-extent-indicators/forest-loss#how-much-tree-cover-is-lost-globally-each-year">at a rate of around 25 million hectares a year</a>. This is an extremely alarming rate, and studies have found that even when all other anthropogenic greenhouse gas emissions are phased out, ‘business as usual’ deforestation alone could still drive global heating above <a href="https://iopscience.iop.org/article/10.1088/1748-9326/aa836d">2°C by 2100</a>.

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Globally the loss of tropical forests has continued to increase. This is largely driven by the commercial production of four commodities: cattle, soy, palm oil and timber. 
Cattle ranching to produce beef, leather, gelatine and tallow is the leading driver of deforestation in Latin America, and deforestation for cattle ranching alone is responsible for the release of <a href="https://wwf.panda.org/discover/knowledge_hub/where_we_work/amazon/amazon_threats/unsustainable_cattle_ranching/">340 million tonnes of CO2 each year</a> &#8211; about 3.4% of global annual emissions .  Soy production is another of the key drivers of deforestation in Latin America. This soy is used for personal care and medical products, fuel, food, and <a href="https://wwf.panda.org/discover/our_focus/food_practice/sustainable_production/soy/">most significantly as animal feed</a>.
Palm oil is a vegetable oil that is derived from the fruit on the African oil palm tree. It is used in a wide range of food, personal care, and household products, as well as to produce biofuel. The production of palm oil is linked to deforestation and climate changes as well as other issues such as habitat degradation, animal cruelty, and indigenous rights abuses. Palm oil production is the largest cause of deforestation in SouthEast Asia and other tropical regions.A recent study found that palm oil contributed to more than <a href="https://www.sciencedirect.com/science/article/pii/S0264837717301552">14% of forest loss</a> over 2005-2015.
The production of timber is another major driver of deforestation and forest degradation across the globe and is used for a variety of products from construction and furnishing, to paper and fabric goods.

Often, people only associate deforestation with agriculture or food production. However, the four forest-risk commodities described above are found in many value chains, across a large number of sectors. For the average company, <a href="https://www.cdp.net/en/research/global-reports/global-forests-report-2016">24%</a> of their revenue is dependent on these four forest-risk commodities. 
These products are used as key ingredients across a range of products from burgers and lipsticks, to construction materials and car seats. However, the link between deforestation and the goods we buy are often hidden by the structure of global supply chains.
A recent report by CDP (a charity that runs the global disclosure system, allowing companies to report and manage their environmental impacts) found that some companies report they are still unaware of the presence of the four main forest commodities in their supply chain or operations, or they are unaware of their impact. Below we highlight a number of sectors, and how they use these products.

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Agriculture 
The single largest cause of deforestation and forest degradation globally is agriculture, with large-scale commercial agriculture accounting for <a href="http://www.fao.org/state-of-forests/en/">40% </a>of tropical deforestation, and local subsistence agriculture for another <a href="http://www.fao.org/state-of-forests/en/">33%</a>.
Forest is cleared at alarming rates to grow crops, particularly soy and palm, and to provide grazing land for livestock, especially cattle. Agriculture is the clear cause of deforestation to produce the four forest-risk commodities. However, the sectors in which these commodities are used is often less clear.
Both export-driven, large-scale agriculture and small-scale agriculture have impacts on deforestation. If you take the Amazon rainforest as an example, commercial, large-scale agriculture, particularly for animal feed, and biofuels using soy and palm oil, is a key pressure that has been responsible for the <a href="https://wwfeu.awsassets.panda.org/downloads/wwf_living_amazon__report_2016_mid_res_spreads_1.pdf">largest losses of natural habitat</a> in the Amazon rainforest in recent decades. However, small-scale agriculture and legal and illegal settlement of small-scale farmers is expanding and is also impacting on forest loss.

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Food and beverage
The majority of deforestation in this sector is linked to meat, soy, and palm oil. Meat production is the most significant driver of deforestation, because as well as the vast clearance of land for grazing livestock (particularly cattle), huge amounts of forests are removed so that the land can be used to grow soy to feed the animals that we eat.
Soy is one of the four major forest-risk commodities, and more than <a href="https://www.wwf.org.uk/sites/default/files/2017-10/Risky%20Business%20-%20October%202017.pdf">80%</a> of soy grown globally is used to feed animals, particularly poultry, pigs and dairy cows.  Therefore, deforestation is at the core of many animal products that we consume: meat, dairy and eggs.
Soybeans also contain approximately <a href="https://www.bothends.org/uploaded_files/document/Soy_Barometer2014_ENG.pdf">18%</a> oil which is refined and used as vegetable oil for cooking in a wide variety of processed food. A valuable by-product from crushing soy is lecithin. This is an emulsifying agent in food products such as chocolate, cookies, peanut butter, and coffee creamers. About<a href="https://www.bothends.org/uploaded_files/document/Soy_Barometer2014_ENG.pdf"> 6%</a> of the global soy production is directly used in food products, predominantly in Asia: soy sauce, tempeh, tofu, soy flour, soy milk, textured vegetable protein and edamame. 
The most well known cause of deforestation within the food sector is palm oil. This is the most widely consumed vegetable oil on the planet, and is found in margarine, chocolate, pizza dough, instant noodles, ice cream, cookies, packaged bread and much more!
Food packaging is also a culprit, as the pulp and paper used to make them come from timber. Not all items appear on the shelf in cardboard packaging, but almost all will have arrived at the supermarket packed in a cardboard box. Wood is also used in the processing of some foods, for example smoking.
Automobile
Leather for cars comes from cattle. The non-profit organisation <a href="https://phys.org/news/2020-09-european-carmakers-leather-fuelling-deforestation.html">Earthsight</a> has revealed that some of Europe’s biggest car makers, including BMW and Jaguar Land Rover, use leather linked to deforestation in South America. These automakers buy leather for vehicle industries that is originally sourced from cattle ranches on illegally razed land in Paraguay.
The automotive and tyre industry is also the biggest consumer of rubber. Almost <a href="https://www.cdp.net/en/forests">90%</a> of natural rubber is produced in South East Asia, where it has become a leading driver of deforestation.

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Textiles
The leather from our shoes, bags and belts comes from cattle. Often the word ‘cattle’ is synonymous with ‘beef’, leaving leather to be labelled as just a by-product of the meat industry and meaning that the environmental impacts of the leather industry avoid scrutiny.
A report from <a href="https://forest500.org/sites/default/files/forest500_annualreport2019_final_0.pdf">Forest 500 </a>in 2019, found that 81% of the 64 most influential companies assessed for leather had no commitment to source deforestation-free leather, including Prada, Zara and Michael Kors.
Deforestation is also a factor in the supply chain of materials made from plant-based cellulose, such as viscose, rayon, bamboo and lyocell fibres. These fibres are made from timber, by processing wood until it forms pulp, adding inorganic fibres and spinning it until it forms fibres. Over <a href="https://forest500.org/analysis/insights/hidden-deforestation-fashion-industry-how-sustainable-sustainable-fabric">150 million trees </a>are logged annually for cellulose fibres for clothing.
Chemical
Many perfumes and flavourings, drugs, and cleaning products contain palm oil or soy. A valuable by-product from crushing soy is lecithin. This is an effective emulsifying agent used in paints, coatings, and waxes.  Palm kernel oil is also used in many chemicals for industrial use.  
Personal care
Many personal care products such as toothpaste, soap, and lipstick contain soy or palm oil. Lecithin, made by crushing soy, is an emulsifying agent that is used in cosmetics. Palm kernel oil is also used for making soap, toiletries, and cosmetics. Tissues, toilet paper, sanitary towels, tampons, and diapers are all made from wood.

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Retailers
Most retailers will sell items that have some of the four forest-risk commodities within them, whether that is furnishings, clothes, noodles, meat, dairy or confectionery.
An example is retailers that sell furniture. Most furniture is made from timber, varying from softwood furniture (e.g. pine) and plywood/laminate flat pack furniture to luxury hardwood (e.g. mahogany). These all have the potential to include damaging deforestation in their supply chain, unless it is ensured that they are sustainably sourced.
The same goes for leather furniture, sourced from cattle. Timber is also used to make musical instruments, tool handles, decorative items and for the packaging that most products will come in (e.g. pallets, cardboard boxes).
Forestry
Perhaps the most iconic symbol of forest destruction is wood production. Products made from wood can be divided into two categories: pulp and timber. Pulp is made from tree fibres and used to produce paper and related products. This is particularly an issue in Indonesia, where native forests are cut down for monoculture plantations of fast-growing tree species.
Timber is used for construction or high end-products like furniture and is linked to forest degradation, where valuable tree species are harvested, and the rest are left. These degraded forests are then <a href="https://conbio.onlinelibrary.wiley.com/doi/full/10.1111/j.1523-1739.2009.01338.x">more likely</a> to be targeted for deforestation and conversion to other land use.

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Print Publishing
The print publishing industry uses paper made from timber in newspapers, books, magazines, office paper, packaging tissues and labels. Timber is also often used to create advertising billboards.
Construction
The construction industry uses timber for both interior and exterior materials including timber frames for houses. Timber is also widely used as a construction material in flooring (solid wood; laminate or parquet blocks), window frames, doors and doorframes, skirting, decking, garden buildings, telegraph poles, fencing, boat building, and railway sleepers.
Energy
Worldwide, <a href="https://wwf.panda.org/our_work/our_focus/forests_practice/forest_publications_news_and_reports/living_forests_report/energy_forests/">2.6 billion people </a>use traditional biomass, mainly wood and charcoal, as a source of energy. Most wood fuel is used in its country of production, particularly in rural areas and in developing countries, for heating and cooking, usually on open fires or in simple cookstoves. In recent years, there has been an expansion of ‘bioenergy’ in industrialised countries, where biomass such as timber is burnt to generate energy.
Finance
Many investments directly or indirectly fund forest clearance. Data from the latest <a href="https://forest500.org/sites/default/files/forest500_annualreport2019_final_0.pdf">Forest 500 assessment</a> of the 150 biggest financial institutions investing in companies in forest-risk supply chains shows that two thirds do not have policies in place to address this risk. 
Fuel
Biofuels are fuels that can be used to drive our cars and other forms of transport that are made from biomass. This has the benefits of reducing emissions associated with fossil fuels, however there are associated risks, including the effect on the world’s forests.  Biodiesel is a type of vegetable oil that is produced from crops. Most biofuel is made from soy or palm oil, both of which are leading causes of deforestation.
Pharma
Soy, palm oil, and even timber are found in a number of medical products. An example is aspirin, which is made from the bark of the white willow tree. The pharmaceutical industry is also an industry that is likely to be affected by deforestation. Of the 50,000 known medicinal plants, which are the basis of more than<a href="https://www.worldbank.org/en/news/feature/2015/01/13/la-deforestacion-un-dolor-de-cabeza-para-la-medicina-natural"> 50% </a>of all medications, up to a fifth are at risk of extinction at the local, national, regional, or global level due to deforestation.

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Deforestation is a corporate responsibility issue that companies must address. The first step is to understand the risks in your business’ supply chain. Could your suppliers be linked to deforestation? Companies need to be more transparent about how they are using cattle, soy, palm oil and timber to enable the deforestation embedded in global supply chains to be publicly tracked. These risks can be addressed by working with your direct and indirect suppliers to ensure they are not driving deforestation and to promote sustainable production.
The Paris Agreement states that since companies are responsible for such a large percentage of emissions, they are also responsible for delivering the necessary reductions. By eliminating deforestation, the business community can deliver emissions reductions equivalent to <a href="https://static1.squarespace.com/static/575ecca7b654f9dd886dec23/t/576c39fdd2b857d28be73608/1466710526653/The+Business+End+of+Climate+Change.pdf">0.5-1.2 billion </a>metric tonnes.

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Deforestation is a global problem; its reach extends far and wide into many sectors and industries. However, by recognising this issue and working with suppliers, businesses can ensure that they are promoting sustainable production.
We also need to work to restore the forests that have been degraded and destroyed. Ecologi is a subscription service that is focused on planting trees to restore forests worldwide, as well as investing in <a href="https://ecologi.com/about">certified carbon reduction projects</a>, and we have already planted over 5 million trees!  Our goal is to avoid 50% of all global greenhouse gases by 2040, through tree planting and carbon reduction Gold Standard climate solutions. Learn more about <a href="https://ecologi.com/business">carbon offsetting for business.</a>
<a href="https://ecologi.com/business"> 
</a><a href="https://ecologi.com/">Sign up to Ecologi today</a><a href="https://ecologi.com/business"> to help us protect and restore the world’s forests!</a>

Impact Reports

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A year of impact for our planet 

Read our annual Impact Report to see the incredible impact our Ecologi community has made in 2022.

As 2023 gets underway, it’s time to review the impact we’ve made over the past 12 months, and look back at all the important moments and milestones we shared in 2022. 
We’ve captured everything in our annual impact report, which looks back at a fantastic year of growth, diversification and collective action, all powered by our wonderful community of businesses and individuals. Join us as we recap another amazing year of impact (full report below). 
<h2>Here&#8217;s a taster of what&#8217;s inside</h2>
As an organisation that prioritises transparency, we wanted to pack as much into our report as possible. But this isn’t your standard PDF-marathon of stats and jargon. We’ve trimmed out the boring bits and tried to keep it light and simple, focusing just on the good stuff that makes a difference. 
We hope it shows what a community of like-minded businesses and individuals can achieve when they come together with a shared purpose.
<ul>
<li style="font-weight: 400;" aria-level="1">Scaling and diversified our impact with a growing team, more projects and new products</li>
<li style="font-weight: 400;" aria-level="1">The launch of our new carbon footprinting tool, Ecologi Zero®</li>
<li style="font-weight: 400;" aria-level="1">Restoring nature and halting biodiversity loss with our incredible planting partners</li>
<li style="font-weight: 400;" aria-level="1">Improving transparency and accountability through partnerships and our publicly available climate impact strategy</li>
<li style="font-weight: 400;" aria-level="1">Exciting things on the horizon for 2023!</li>
</ul>
We’re incredibly grateful for the ongoing support and trust of our community. It’s safe to say that 2022 has been a phenomenal year of impact for Ecologi, entirely made possible by you. So give yourselves a pat on the back and see what we achieved together in our 2022 Impact Report.

<a href="https://drive.google.com/file/d/1aJPOZNSVI2rz-a8Yn7cc8OlMMmKeN-cc/view">Download</a> the Annual Impact Report.
<a href="https://ecologi.com/business/overview">Sign up</a> today to take real climate action with Ecologi 🌱

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Ecologi’s response to The Guardian investigation into Verra

A response from our CEO & Co-founder Elliot Coad, regarding The Guardian investigation into Verra.

You may have seen <a href="https://www.linkedin.com/company/theguardian/">The Guardian</a>’s recent investigation into rainforest carbon offsets. I wanted to address the concerns you may have &#8211; particularly around how we select our projects. 
The world’s forests, particularly biodiverse tropical rainforests, are vital to maintaining a healthy planet. But they&#8217;re at a critical point.
It’s widely acknowledged, <a href="https://www.theguardian.com/environment/2023/jan/18/carbon-markets-credits-offsets-deforestation-aoe" target="_blank" rel="noopener">including by the Guardian’s environment editor,</a> that carbon finance has a large role to play in preventing deforestation. When done properly, it provides crucial funding to high-quality forest protection projects, which have a positive impact on both the environment and local communities.
The investigation underscores the importance of ensuring that carbon offsetting projects are genuinely impactful. Our internal climate experts assess over 200 projects each month, before choosing to fund a carefully selected handful. We select our projects according to our <a href="https://ecologi.com/articles/updates/how-ecologi-finds-and-funds-the-most-impactful-climate-solutions" target="_blank" rel="noopener">climate impact regionalisation strategy</a>, which directs funding towards places with the greatest potential impact, and prioritises areas at greater risk of degradation. And to ensure that the methodologies used are the most up-to-date, we only buy recently issued carbon credits (issued within the last 5 years). 
In addition to our in-house due diligence, we work closely with organisations like <a href="https://www.sylvera.com/" target="_blank" rel="noopener">Sylvera</a>, the leading carbon intelligence platform. Sylvera independently verifies each of the reduced deforestation projects Ecologi supports, taking all of the factors outlined in the Guardian investigation into account, as well as other important co-benefits indicators, like the inclusion of Indigenous and local communities. The nature-based projects Ecologi supports are amongst the most highly rated by Sylvera. <a href="https://www.sylvera.com/blog/guardian-offsets-response" target="_blank" rel="noopener">Here</a>’s their take on the Guardian investigation.
Carbon finance has a key role to play in the protection of forests from deforestation, as well as providing critical funding to other vital climate solutions. The Guardian article highlights some of the known challenges of certain projects, which <a href="https://www.sylvera.com/blog/an-introduction-to-jurisdictional-redd" target="_blank" rel="noopener">are being rectified</a>. What’s most important right now is for the industry to keep evidencing impact as best as it can, and hold specific projects to account that fall below the required standard. This will be a big focus in 2023 &#8211; just last week a leading governance body announced it will <a href="https://icvcm.org/integrity-council-unveils-timetable-to-introduce-high-integrity-label-to-voluntary-carbon-market-in-q3/" target="_blank" rel="noopener">label high-quality projects</a>. 
There are so many impactful projects out there and it’s essential that funding continues to flow into them.
Thank you, as ever, for your continued support.
Elliot
Ecologi CEO &amp; Co-founder

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Ecologi’s Eco Gift Guide - best ethical gift ideas from our community 

The best ethical gift ideas from our community 

Giving always feels good. Particularly at this time of year. And giving a carefully chosen gift from an ethical company making a positive impact on the world feels even better. No-one wants to give with one hand and take from our planet with the other, so why not dial that warm giving glow to the max by choosing something from Ecologi’s Eco Gift Guide? 
We have some really great ethical businesses offering amazing gifts right here in our Ecologi community, so we’re lucky enough to come across lots of hidden gems and rare treasures.  Here’s some of our top picks. Whether you&#8217;re looking for a secret santa pressie for colleagues or a festive thank you to your faves, we’ve got a suggestion for everyone, and an idea for all budgets…

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<h3>Pre-loved gadgets </h3>
E-waste is one of the fastest growing problem areas for our planet, and a typical new phone creates at least 79kg of CO2 emissions. So why not keep tech out of landfill by giving pre-loved gadgets a new home? You can get some great refurbished smartphones and tablets at <a href="https://reboxed.co/" target="_blank" rel="noopener">Reboxed. </a>

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<h3>Bathroom beauties </h3>
<a href="https://ethique.co.uk/collections/gift-packs" target="_blank" rel="noopener">Ethique</a> makes incredible cosmetic products such as shampoos and soap bars that are 100% free from plastic and palm oil, while also being carbon-neutral and vegan. Oh, and they smell amazing too!

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<h3>Sustainability with style</h3>
Up your accessories game with a range of stunning dungarees, hats, tees, bags and more from <a href="https://lucyandyak.com/collections/gifting" target="_blank" rel="noopener">Lucy &amp; Yak</a>. Everyone who’s had a hand in making these beautiful, high-quality garments is treated and paid fairly, and all of their organic cotton is <a href="https://global-standard.org/" target="_blank" rel="noopener">GOTS certified. </a>

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<h3>Ecologi tree gifting </h3>
Why not give friends and colleagues <a href="https://ecologi.com/gifting" target="_blank" rel="noopener">the gift of trees</a> this season? Our trees are planted all around the world in the places they’re needed most, and they do a world of good for local biodiversity and communities. Your recipient will also get their own virtual forest to watch grow. It’s a gift that will keep on giving, long into the future.

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<h3>Cosy candles </h3>
There’s no better way to cosy up a home than candlelight. <a href="https://good-candles.com/" target="_blank" rel="noopener">Good Candles</a> are hand poured with responsibly sourced soy wax and 10% of all sales is donated to good causes, including planting trees with Ecologi!

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<h3>One-of-a-kind artworks </h3>
Bring a splash of inspiration into any home or office, with <a href="https://www.artfinder.com/#/" target="_blank" rel="noopener">authentic artwork</a> made by independent artists. Artfinder is on a mission to make art sustainable, accessible and affordable, while supporting artists to make a living doing what they love.

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<h3>Year-round bake offs </h3>
Treat any keen baker to a <a href="https://bakedin.co.uk/pages/gift-a-subscription" target="_blank" rel="noopener">Baked In</a> subscription and they’ll love receiving a unique baking kit each month. You’ll be supporting a great company that exists to tackle food waste, while making their packaging as sustainable as possible and supporting local charities too.

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<h3>Greener gin</h3>
Know someone who likes a tipple? <a href="https://www.greenallsgin.com/greenergreenalls/" target="_blank" rel="noopener">Greenall’s Gin</a> now produces a miraculous paper bottle (who knew?) reducing weight, carbon footprint and water usage. And if that’s not impressive enough they also plant a tree with Ecologi for every bottle sold!

One final thought, if you want to send a thank you card to colleagues and clients this year you can save unnecessary paper waste and give the postie a break by choosing a beautiful <a href="https://shop.wwf.org.uk/collections/ecards" target="_blank" rel="noopener">WWF e-card</a>, featuring stunning photography of wildlife and nature.
We hope you’ve found something that fits the festive bill from this amazing community of ethical companies. Happy holidays and happy gifting!

Industries and sectors driving deforestation: what you need to know

Why are forests so important?

The Problem of Deforestation

The Four Commodities

Global Supply Chains

What can businesses do?

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Impact Report 2022: A year of impact for our planet

Ecologi’s response to The Guardian investigation into Verra

Ecologi’s Eco Gift Guide

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