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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>

Ready to make a difference for our planet? Get in touch, and let’s chat about how we can help you on your climate journey. 

Don't wait for politicians, your company can lead the way to net-zero

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Don’t wait for politicians, your company can lead the way to net-zero

<h2>With the cumbersome movement of climate policy, innovative companies must drive change on our route to net-zero.</h2>
 
COP28 is on the way, starting in Dubai at the end of November. It’s fair to say that, given <a href="https://ecologi.com/articles/blog/whats-happening-at-cop27" target="_blank" rel="noopener">the disappointments of last year’s COP</a>, and the fact that this year’s COP President is <a href="https://www.bbc.co.uk/news/science-environment-65708328" target="_blank" rel="noopener">CEO of one of the world’s largest oil companies</a>, expectations are low that international governments will produce positive change which matches the scale and urgency of the climate crisis.
These past few years, the COPs have demonstrated that international policy can be a slow, almost agonising process &#8211; with tense last-minute negotiations, and <a href="https://ecologi.com/articles/blog/cop26-what-happens-now" target="_blank" rel="noopener">the watering down of already-weak pledges</a> and commitments. 
As we look to the COPs, though, it is clear that there are stakeholders elsewhere who are better placed to drive expansive and rapid change in the decarbonisation of our global economy: businesses.

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<h2>Businesses are set-up to innovate &#8211; but are they doing enough? 
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Why businesses? Well, we can start by asking ourselves which organisations have the power to facilitate change on a scale that in some cases may exceed many states. <a href="https://www.visualcapitalist.com/the-tech-giants-worth-compared-economies-countries/" target="_blank" rel="noopener">Apple&#8217;s market capitalisation exceeds Italy&#8217;s GDP</a>, <a href="https://www.visualcapitalist.com/the-tech-giants-worth-compared-economies-countries/" target="_blank" rel="noopener">Microsoft&#8217;s surpasses Brazil&#8217;s</a>, and <a href="https://www.visualcapitalist.com/the-tech-giants-worth-compared-economies-countries/" target="_blank" rel="noopener">Meta&#8217;s dwarfs that of Saudi Arabia</a>. With this much influence and access to finance, these private companies have a huge amount of control over the direction of our global net-zero efforts.
Large corporations understand the way the wind is blowing. According to Accenture, around <a href="https://www.accenture.com/us-en/insights/sustainability/reaching-net-zero-by-2050" target="_blank" rel="noopener">a third of the world’s top 2,000 public and private companies </a>have made net-zero commitments. However, according to the same research, around <a href="https://www.accenture.com/us-en/insights/sustainability/reaching-net-zero-by-2050" target="_blank" rel="noopener">93% of them will fall short of these net-zero targets unless they accelerate their efforts</a>.
Why is this? Well, for major corporations, climate ambitions are often perceived as optional corporate social responsibility (CSR) gestures, lacking the rigour and accountability expected of political leaders and international climate governance. This means that whilst businesses are well-placed to take action, often they aren’t yet going far enough.

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<h2>Taking climate action makes business sense 
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It’s easy to assume that taking climate action as a business is going to be a huge time and resource sink. And it’s true that the journey to net-zero for most businesses is going to be a long-term challenge &#8211; it’s definitely no walk in the park.
But for many businesses, embracing net-zero presents a significant opportunity. Younger generations &#8211; Generation X, Millennials and Generation Z &#8211; want to see companies taking action, with over <a href="https://www.nielsen.com/us/en/insights/article/2018/global-consumers-seek-companies-that-care-about-environmental-issues/" target="_blank" rel="noopener">80% of consumers from these groups reporting that companies should implement environmental improvement programs</a>. Global investment in sustainability <a href="https://www.weforum.org/agenda/2020/01/sustainability-green-companies-business-partnership/" target="_blank" rel="noopener">has surpassed $30 trillion</a>, demonstrating that as well as individuals, corporate investment initiatives are prioritising the greening of our economy.
Fossil fuel prices are expected to rise steadily, while <a href="https://ourworldindata.org/grapher/levelized-cost-of-energy" target="_blank" rel="noopener">renewable energy costs continue to plummet</a>. For corporations, transitioning to a fossil-free supply chain is a prudent strategy for future-proofing their operations &#8211; both in terms of costs and in terms of energy security.

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<h2>Corporate leadership during and after COP28</h2>
In contrast to the cumbersome movement of international climate policy, the private sector is often associated with innovation, expertise, and agility. It&#8217;s time for businesses to lead the way, proactively driving the green transition rather than waiting to be nudged by governments.
Companies, as much as countries, are stewards of our planet. Those with influence, finance and power have a responsibility to protect our collective home. Therefore, 2023 must be the year when businesses step up and take the lead in the global effort to combat climate change.

<a href="https://ethy.co.uk/" target="_blank" rel="noopener">ethy</a>
 
<a href="https://ecologi.com/ethy" target="_blank" rel="noopener">ethy</a> makes it easy and affordable for brands to communicate verified sustainability achievements against transparent standards.
 
They are a Climate Action Workforce subscriber with Ecologi and are aiming to be net-zero by 2025. They are also a part of Stripe Climate &#8211; a coalition of businesses accelerating carbon removal by contributing a portion of their revenue to carbon removal technologies.
 
How do you think the private sector can lead in the journey to net-zero?
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In the UK, businesses are increasingly adopting ambitious carbon reduction and net-zero strategies.When the private sector demonstrates successful implementation of sustainable practices, it also signals to policymakers that there’s viable markets for these initiatives. This, in turn, incentivises the government to introduce policies that support these practices.
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What are your plans for COP28?
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Ahead of COP28, we have developed several important new standards in our sustainability framework to guide our business clients on their net-zero journey, including Carbon Measured, Carbon Reduction Targets, and Net Zero Committed. We aim to highlight these crucial practices and showcase our collaborative efforts with organisations like Ecologi that can support our clients in reaching them.

Ecologi businesses that are taking action during COP28

<h2> 
Take action today and speak to our team</h2>
If you&#8217;re a business ready to embrace this crucial responsibility and take a substantial stride towards achieving Net Zero, we invite you to take action today. Complete the form below to speak to our team about how Ecologi and our partners can provide comprehensive carbon footprinting solutions and dedicated support on your journey to reducing emissions.
If you’re a business with less than 100 employees explore our carbon footprinting tool, <a href="https://ecologi.com/business/zero" target="_blank" rel="noopener">Ecologi Zero</a>, designed specifically for UK-based SMEs looking to measure and reduce their carbon footprint.

Speak to our team. We're here to help find your perfect climate solution.

Go above and beyond during your net-zero journey: Explaining Beyond Value Chain Mitigation

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Explaining Beyond Value Chain Mitigation

Beyond value chain mitigation &#8211; what is it? Why should your business do it? How should your business do it?
Science is clear that minimising global warming requires substantial emissions reductions globally, if we are to limit the global temperature increase to below 2°C, and as close as possible to 1.5°C.
Simply offsetting your business emissions is an outdated and ineffective way of thinking about sustainability &#8211; as we set out in our previous article, <a href="https://ecologi.com/articles/blog/carbon-offsetting" target="_blank" rel="noopener">The way we think about carbon offsetting is all wrong</a>. If all the businesses in the world kept doing what they were doing, but offset their emissions, then we would not solve climate change.
So, for businesses to align with the science of climate change, making direct emissions reductions must be the number one priority.
However, whilst working towards those emissions reductions, businesses can (and must) fund high-quality climate‌ action around the world, at the same time &#8211; and this is where Beyond Value Chain mitigation comes in. 
But what does that actually mean? Where does the term come from, and where does it fit within your business’s net zero journey?
<h2>What is Beyond Value Chain Mitigation?</h2>
Beyond value chain mitigation, or BVCM, is a key concept in the <a href="https://sciencebasedtargets.org/resources/files/Net-Zero-Standard.pdf" target="_blank" rel="noopener">SBTi’s Corporate Net-Zero Standard</a>, which is the leading net-zero framework for businesses.
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<li style="font-weight: 400;" aria-level="1">‘Beyond’ refers to actions a business can take outside of its value chain</li>
<li style="font-weight: 400;" aria-level="1">‘Value chain’ is the system of operations, suppliers and activities that generate business emissions</li>
<li style="font-weight: 400;" aria-level="1">‘Mitigation’ refers to solutions which reduce the impact of climate change.</li>
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Don’t be put off by the scientific terminology. It just means funding climate action around the world, whilst reducing your business emissions on your journey to net-zero.

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Funding climate action allows businesses to focus on making an instant impact today that contributes positively on a global and societal level, instead of  simply trying to offset their  carbon emissions. Whilst the main priority, direct emissions reductions will take some time, so all businesses can and should start funding climate action (BVCM) today.
<h2>Why should businesses invest in BVCM?</h2>
There are two main vectors for why your business should invest in BVCM: for your business, and for our planet.
<h3>For your business</h3>
As well as your business’s philanthropic values, there is ever-increasing pressure from within and around businesses to take serious action on climate. Your business will want to meet climate targets, attract and retain top talent, make credible green claims about your products and services, and gain a competitive edge &#8211; and each of these is boosted if your business can evidence your contributions to impactful global climate action.
Stakeholders all around your business &#8211; from customers, to employees, to potential investors &#8211; all want to see your business give back to the planet. And BVCM is your business’s vehicle for doing so.
<h3>For our planet</h3>
On a global level, there is still a huge gap between where we are today, and where we need to be. Emissions are still rising, and we are continuing to deplete nature’s precious resources at an alarming rate. At present, globally, humanity is using nature<a href="https://www.overshootday.org/how-many-earths-or-countries-do-we-need/#:~:text=Humanity%20is%20using%20nature%201.7,the%20resources%20of%201.7%20Earths." target="_blank" rel="noopener"> 1.7 times faster</a> than our planet’s biocapacity can regenerate. That’s equivalent to using the resources of 1.7 Earths each year. The UK specifically is using 2.6 more of the natural resources than it should. In addition, we are <a href="https://www.stockholmresilience.org/research/planetary-boundaries.html" target="_blank" rel="noopener">overshooting planetary boundaries</a>, and our <a href="https://www.carbonbrief.org/analysis-what-the-new-ipcc-report-says-about-when-world-may-pass-1-5c-and-2c/" target="_blank" rel="noopener">remaining carbon budget</a> is dwindling. 
Alongside taking accountability for your business’s direct emissions reductions, BVCM supports your business to make a positive contribution out there in the world &#8211; to support global efforts toward net-zero, and to the restoration of nature.

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<h2>How should your business approach BVCM?</h2>

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<h3>Tonne-for-tonne</h3>
The simplest approach is the tonne-for-tonne approach. This is similar (though not quite the same!) as offsetting or becoming carbon neutral. 
This means that your business buys and retires carbon credits to match 100% of your company’s emissions. If you produce 100 tonnes of emissions, you’ll buy 100 carbon credits. The size of your emissions is used to benchmark the size of your contribution to climate action.

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<h3>Dollar-for-tonne</h3>
The dollar-for-tonne approach allows you to set a carbon price within your business. For example, you could say that you will fund climate impact of, say, £75, or $100, per tonne of emissions your business produces.
Both of these first two approaches apply the ‘polluter pays’ principle &#8211; meaning that the more emissions your organisation produces, the larger your obligation to fund climate action. Committing to one of these approaches therefore provides your business with a powerful financial incentive to reduce your emissions.

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<h3>Dollar-for-dollar</h3>
Dollar-for-dollar is the most flexible approach, but can also be the most difficult to implement. It ties your BVCM funding to your financial performance as a business, not to your organisational emissions. Examples could include spending 5% of your business’s annual profits on climate action, or 1% of your annual turnover. As your business grows, so does your funding toward climate action. 
As always, whichever approach you choose, it must be carried out alongside an emissions reduction plan &#8211; otherwise, it’s just greenwashing.
<h2>Which BVCM approach is best?</h2>
Which approach is ‘best’ is likely to depend on your business &#8211; what it does, which industry it is in, and how big it is. The highest impact approach in terms of funding mitigation is often the dollar-for-dollar approach, but this commitment may not be possible for your business &#8211; and it also may not be the highest impact approach, if your business is in a particular industry which has high emissions or small margins.
You can even mix approaches.

By definition, climate action that ‘counts’ towards BVCM are those that help to mitigate climate change, and that take place outside of the value chain.
The SBTi gives some examples: 
<ul>
<li style="font-weight: 400;" aria-level="1">Conservation projects, e.g., peatland or mangrove</li>
</ul>
<ul>
<li style="font-weight: 400;" aria-level="1">Energy efficiency, e.g., cookstove projects</li>
</ul>
<ul>
<li style="font-weight: 400;" aria-level="1">Methane destruction, e.g., landfill gas projects</li>
</ul>
<ul>
<li style="font-weight: 400;" aria-level="1">Renewable energy, e.g., solar/wind/biogas</li>
</ul>
<ul>
<li style="font-weight: 400;" aria-level="1">Industrial gases, e.g., N2O destruction at nitric acid facilities</li>
<li style="font-weight: 400;" aria-level="1">Carbon Removal technologies, e.g., Direct Air Capture (DAC) and Storage</li>
</ul>
Adapted from <a href="https://sciencebasedtargets.org/resources/files/Beyond-Value-Chain-Mitigation-FAQ.pdf" target="_blank" rel="noopener">SBTi (2021)</a>
 
The examples given by the SBTi refer only to the types of projects which generate carbon credits.
 
However, at Ecologi, we encourage businesses to think beyond carbon credits as well. Landscape restoration, ocean conservation, rewilding, climate education, climate justice &#8211; investing in all of these should be considered when preparing a BVCM strategy, and all of them count.

What climate action can I fund?

<h2>What makes a strong portfolio?</h2>
For businesses it can be helpful to think of funding climate action  as a ‘portfolio’, like an investment portfolio. A strong portfolio will have:
<ul>
<li aria-level="1">Integrity. Select projects and initiatives that benefit climate, nature and people. 
</li>
<li aria-level="1">Diversity. Balance different projects and project types in order to both maximise impact and minimise risk. </li>
</ul>
<ul>
<li style="list-style-type: none;"></li>
</ul>
<ul>
<li aria-level="1">Quality. Vet all your selected projects for the quality of their activities. All carbon credits <a href="https://ecologi.com/articles/blog/funding-carbon-credits" target="_blank" rel="noopener">must meet high quality standards</a>.</li>
</ul>
<ul>
<li aria-level="1">Dynamism. Actively monitor the contributions of your business and be proactive with keeping those contributions up-to-date. </li>
</ul>
<ul>
<li aria-level="1">Innovation. Support new projects and initiatives within your portfolio. Don’t be afraid to move things around &#8211; if you find a project isn’t working out, exercise the flexibility and initiative to try something new.</li>
</ul>
In comparing your climate action portfolio to an investment portfolio, don’t expect it to deliver a financial return. It represents your business giving back &#8211; the ‘return’ is in impact for our planet helping to bring us forward to a more equitable, net-zero world. 
<h2>What might your BVCM portfolio look like?</h2>
Here’s an example of what a BVCM portfolio you could build with Ecologi might look like:

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As you can see, in this example there is a good variety of project types, and funding is provided in different amounts across the different types of projects. This allows you to prioritise project types and locations that matter most to your business.
Remember: <a href="https://sciencebasedtargets.org/blog/net-zero-urgent-beyond-value-chain-mitigation-is-essential" target="_blank" rel="noopener">funding BVCM is urgent and essential</a> whilst on your climate journey &#8211; but in building your BVCM portfolio, you should always consider where best to place your funds to produce the most impact. If you could spend some or all of your BVCM budget for this year on direct emissions reduction (for example, through installing solar panels) then you ought to prioritise that instead.
In this way, BVCM takes its place alongside your plans to reduce emissions directly, and should never displace them.
<h2>When should I start funding climate action?</h2>
The short answer is: start today. 
Funding climate action is not a get-out-of-jail-free card which excuses your business from reducing emissions. However, it can be the quickest and easiest way to get moving on your climate journey.
Moreover, BVCM represents an opportunity you can tackle in the immediate term, whilst you undertake longer-term strategies for directly reducing your emissions. Both components are essential, but they are likely to have different timescales for your business.
<h2>How can I fund climate action through Ecologi?</h2>
Your business can fund the very best climate solutions through our Impact Shop.
From tree planting to renewables, community-based and nature-based carbon avoidance projects and carbon removals including biochar, mangroves &amp; seagrass (blue carbon) and afforestation you can make an instant impact for our planet.
If you already know what you want to fund then visit our Impact Shop <a href="https://ecologi.com/business/impact-shop" target="_blank" rel="noopener">here</a>.
If you need to speak to our team to find the right solution for your business, get in touch below.

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What to expect at COP28

This year’s annual Conference of the Parties (COP28) is just around the corner, and at Ecologi we’re gearing up to bring you more analysis and reaction to developments as this 28th session of the parties to the UNFCCC (United Nations Framework Convention on Climate Change) unfolds.
In this guide we’ll be covering:
<ul>
<li><a href="#whatiscop28">What is COP28</a></li>
<li><a href="#whereandwheniscop28">Where and when is COP28</a></li>
<li><a href="#keytalkingpoints">The key talking points in the run up to COP28</a></li>
<li><a href="#whoisattending">Who is attending COP28</a></li>
<li><a href="#whattoexpect">What to expect during COP28</a></li>
</ul>
This page will be our hub for all things COP &#8211; so whether you’re eager to learn about the climate conference process, or just want to know what’s happening, you can find it all here.

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<h2>COP28: what, where and when?</h2>
<a id="whatiscop28"></a>COP28 is the 28th <a href="https://unfccc.int/" target="_blank" rel="noopener">Conference of the Parties to the UNFCCC</a> &#8211; the UN’s primary climate change body. All United Nations member states are Parties to this treaty, as well as the European Union and other non-UN member states. That makes the COPs a huge event in the political calendar, where world leaders come together once per year to discuss, negotiate, and make commitments on climate change.
<a id="whereandwheniscop28"></a>This year’s COP takes place in Dubai, United Arab Emirates, from 30th November to 12th December 2023. The two-week conference will cover a number of crucial climate topics, including <a href="https://www.cop28.com/en/thematic-program" target="_blank" rel="noopener">climate finance, youth, agriculture, and more</a>.
We’ve previously covered events at <a href="https://ecologi.com/articles/blog/whats-happening-at-cop27" target="_blank" rel="noopener">COP27 in Sharm El Sheikh</a> and <a href="https://ecologi.com/articles/blog/what-happened-at-cop26" target="_blank" rel="noopener">COP26 in Glasgow</a>, so do revisit our articles on those if you need a refresher on how it all takes place.

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<h2><a id="keytalkingpoints"></a>What are the key talking points in the run up to COP28?</h2>
<h3>The hosts</h3>
As ever &#8211; or perhaps more than ever &#8211; this COP is mired in controversy before it’s even begun. As a nation, the host country, the UAE produces the <a href="https://ourworldindata.org/grapher/co-emissions-per-capita?tab=chart&amp;country=ARE~GBR~CHN~AUS~USA" target="_blank" rel="noopener">sixth-most emissions per capita of any country</a> in the world (21.8 tCO2e per capita in 2021, excluding land use change). It is one of the world’s ten largest oil producing countries, with <a href="https://www.trade.gov/country-commercial-guides/united-arab-emirates-oil-and-gas" target="_blank" rel="noopener">around 30% of its economy</a> based on oil production. The COP President is Sultan Ahmed Al Jaber, <a href="https://www.bbc.co.uk/news/science-environment-64240206" target="_blank" rel="noopener">who is CEO of ADNOC</a>, the Emirati state-owned oil company.
The UAE has also <a href="https://www.theguardian.com/environment/2023/aug/01/leak-uae-presidency-un-climate-summit-oil-gas-emissions-yemen" target="_blank" rel="noopener">been accused of attempting to whitewash</a> (and greenwash) its reputation ahead of the conference, including hiring a number of PR and lobbying agencies to promote the country’s image, which is often associated with strict restrictions on freedom, and <a href="https://www.amnesty.org/en/location/middle-east-and-north-africa/united-arab-emirates/report-united-arab-emirates/" target="_blank" rel="noopener">allegations of human rights violations</a>.
<h3>Fossil fuel phase-out</h3>
The ‘High-Ambition Coalition’, a loose group of around 15 Parties including France, the Marshall Islands, Sweden and the UK, has started preparing negotiations to phase out fossil fuels. This is notable because countries and multilateral groups are not always up-front about their negotiating stances prior to the conference, and even more seldom are those stances ambitious enough to meet the challenge of the climate crisis.
You may remember this was a key flashpoint back at COP26, where at the last minute the language of phasing out fossil fuels <a href="https://www.theguardian.com/environment/2021/nov/13/cop26-countries-agree-to-accept-imperfect-climate-agreement" target="_blank" rel="noopener">was disappointingly changed to phase down “inefficient fossil fuel subsidies&#8221;</a> in the final cover decision.
Whether the High Ambition Coalition can maintain this phase out stance throughout two weeks of negotiations remains to be seen. What is certain is that this issue has become the most glaring elephant in the room for the international climate conferences: we all understand that <a href="https://news.un.org/en/story/2022/09/1126931" target="_blank" rel="noopener">the burning of fossil fuels must end</a>. But the politics of the COPs has so far meant that a commitment (even a non-binding one) to end fossil fuel use for good has still not been delivered.
<h3><a id="whoisattending"></a>Who’s going (and who’s not)</h3>
In a first, Pope Francis <a href="https://www.wsj.com/world/pope-francis-to-attend-cop28-climate-change-conference-in-dubai-16c50cd5" target="_blank" rel="noopener">has announced</a> he will be attending COP28 this year, making him the first Pope to do so. He and the Vatican have been happy to speak out on climate change in recent years, including vocally backing the Paris Agreement and <a href="https://www.independent.co.uk/climate-change/news/donald-trump-pope-francis-slap-face-paris-agreement-climate-change-vatican-global-warming-a7767751.html" target="_blank" rel="noopener">criticising the US for withdrawing from it</a> under Donald Trump in 2020 (the US rejoined the Agreement under Joe Biden in 2021).
Biden himself will <a href="https://www.reuters.com/sustainability/cop/biden-unlikely-attend-dubai-cop-climate-meeting-sources-say-2023-10-31" target="_blank" rel="noopener">reportedly not be in attendance</a> this year, though he did attend COP 27 last year, and his administration is known for changing the President’s plans to make appearances last-minute. 
During his speech a few weeks ago where he announced the slackening of some of the UK’s climate commitments, <a href="https://www.bbc.co.uk/news/uk-66871073" target="_blank" rel="noopener">the Prime Minister Rishi Sunak announced</a> that he would be attending COP28. In addition, we now know that King Charles will also be attending, and <a href="https://www.royal.uk/news-and-activity/2023-11-01/the-king-will-attend-cop28-uae-0" target="_blank" rel="noopener">delivering an opening address on 1st December</a>. The King has been very vocal about environmental issues over the years, including <a href="https://www.youtube.com/watch?v=xV9n0LM63Bc&amp;t=12s" target="_blank" rel="noopener">taking part in our very own virtual festival of climate action</a> back in 2020.

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<h2><a id="whattoexpect"></a>What to expect during the COP</h2>
As is always the case, we can expect lots of talking points, controversies, and politicking to take place throughout the two weeks of the COP. 
Because of the fact that the conference host and key organising figures are so heavily associated with the fossil fuel industry, it seems unlikely that this COP will deliver much in the way of substantive commitments on reducing fossil fuel use. We can probably expect a lot of high-profile speeches and announcements early on, with the legal and policy commitments then steadily being watered-down over the two weeks.
There are other factors too, like a recent history of disappointment from the COPs, which so far have failed to halt annual increases in emissions &#8211; let alone begin reducing them. In the UK, with the conference being later than usual and finishing only two weeks before Christmas, we can probably expect relatively little cut-through into television and news media.
Throughout the conference, we’ll be bringing you regular updates as we follow along with the negotiations and announcements.

<h2>Partner with us for COP28 and beyond</h2>
Over the next 12 months we want to support as many businesses as possible to measure their footprint and help reduce their emissions.
If your business is interested in a brand partnership to help scale climate action or starting its climate journey during COP28 or beyond, get in touch 🌍

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