An increasing number of business organizations say they are willing to protect the world’s remaining forests by ensuring that the  agricultural commodities they purchase are sustainably sourced.

But a leading environmental organization which promotes carbon disclosure says that not enough companies are walking the talk and that these companies now urgently need to move from commitment to action.

In a new Forest Report, which looks at companies representing a market capitalization of over USD 3 trillion, the Carbon Disclosure Project writes:

This year has seen many large global companies make a commitment to rid their supply chains of deforestation. These commitments are in part a response to demand from investors for companies to recognize and act on the risks facing their businesses. However, commitments are only meaningful if they are acted upon.

Deforestation resulting from the production of key commodities such as meat, palm oil, timber and soy is responsible for an estimated 10-15% of the world’s greenhouse gas emissions. Halting deforestation is crucial for the international community to reach its goal of staying below a maximum 2 degrees Celsius temperature rise.

New Commitments Made at UN Summit

The report points to new commitments made at the September UN Climate Summit in New York, where governments and multinational companies agreed to eliminate deforestation from the production of agricultural commodities altogether by 2020.

In the course of this year, 19 major consumer goods companies adopted policies to avoid deforestation resulting from palm oil plantations.

However, the report warns that many companies have a track record of failing to deliver on their promises.

As this graph shows, palm oil and timber are the two main commodities for which companies have in the past not taken action despite officially adopting sustainability policies:

The Carbon Disclosure Project Companies says that whilst many companies have yet to realize a comprehensive strategy for tackling deforestation, data shows that nearly 90% of businesses have identified opportunities for the sustainable sourcing of at least one key “forest-risk” commodity such as beef and timber.

The authors also say that companies which both adopt sustainable procurement policies and are fully transparent in reporting progress have the best chances of securing shareholder value.

Finally, the report points to 2015 as the year in which decisions on the global development agenda and on climate change will be taken that “offer a unique opportunity to set the global economy on a more sustainable and equitable trajectory.”

Image: Lian Pin Koh, Flickr