Reporting to CDP's forests program

CDP’s forests program assists companies to disclose on the four forest risk commodities most responsible for deforestation globally. Whether or not you have received an information request on behalf of our investor signatories you can report to the program to better understand and address your exposure to deforestation risks.

Find out more below or if you have any further questions please get in touch with our disclosure support team at respond@cdp.net.

Why participate?

Companies disclosing to CDP receive numerous benefits, including:

  • Investor communication: 365 investors with US$22 trillion in assets wish to understand the exposure to deforestation within their portfolios. Investors are being increasingly proactive on deforestation risk: for example, in 2015, NBIM - Norway’s central bank - decided the Government Pension Fund of Norway should not invest in four companies over deforestation concern. This follows previous action from the Norwegian bank to exclude several other companies from investment.
  • Stakeholder communication: increased transparency and effective communication with other stakeholders including clients and consumers. Companies publicly responding to CDP’s forests program are recognised by a number of public platforms, notably supply-change.org and forest500.org.
  • Internal risk management: review risk management processes and stimulate work with suppliers and customers to develop timely solutions to potential problems, improving the resilience of the supply chain.
    • Regulatory risks: With increasing international pressure to address food security and build a sustainable economic model, more rapid regulatory change is only to be expected across commodities. For example, illegal timber regulations prohibiting the import of illegal material have been implemented in the EU, USA & Australia. Companies dependent on forest risk commodities, and their shareholders, are at risk from losing the value that access to artificially low-cost resources from the use of recently deforested land brings. Disclosure and voluntary action is the best defence that business has against heavy handed or ill thought-out legislation, and the best preparation for future legislation.
    • Operational risks: Extreme weather events across the world are timely reminders of the vulnerability of commodity supply chains especially in the face of climate change. For example, in 2014 there was a record drought in central and southeast Brazil followed by an unusually heavy deluge of rainfall across some states. Brazil was expected to produce more soy than the US for the first time but harvests were severely affected. The rainfall in this region is known to be connected to the movement of water vapour evaporated from the Amazon. Companies effectively managing their production and procurement are more likely to be able to anticipate and be more resilient in the face of such risks.
    • Reputational risks: High profile NGO campaigns can impact badly on a company’s reputation and can originate from and impact on other parts of the same supply chain. For example, the European ‘horse meat scandal’ in 2013 revealed very publically the lack of traceability and verification in some retail companies’ supply chains. Further in 2014 and 2015, a great number of businesses were targeted by NGO campaigns, including those from Greenpeace, Forest Heroes, SomeOfUs and the Rainforest Action Network.
  • Opportunities: Almost 90% of the disclosers to the forests program report on the opportunities associated with sourcing sustainable commodities. e.g. brand differentiation, stakeholder support, capacity building and innovative solutions to the problem of sourcing these commodities sustainably.
  • Benchmarking: understand performance and progress. The forests program provides individual level feedback with a score to allow benchmarking against others in the same sector.
  • Staying ahead of the curve: we provide information on commodity challenges globally and have a good understanding of the global NGO/policy agenda.
  • Collaboration: CDP provides a central point for exchange of information, research and best practice case studies on deforestation issues, encouraging innovation through exchange and collaboration.
What do investors want to know?

The 2016 information request is sent out to companies on behalf of 365 investor signatories with US$22 trillion in assets. The questionnaire reflects the concerns of these investors, as well as other stakeholders, including:

  • Are any of your operations or critical suppliers exposed to deforestation risks – regulatory, operational or reputational?
  • What systems do you have in place to manage your supply chain and to ensure traceability of products?
  • How confident are you that you will have access to the quantity and quality of commodities required to operate now and in the future?

Responding to this information request or self-selecting to submit a response communicates this information to key stakeholders and can add value to your business.

2016 Information Request
In 2016, the Forests Information Request will be sent to over 800 of the world’s largest companies that have operational or supply chain risks related to one or more of the major four ‘forest risk’ commodities: timber products, palm oil, soy and cattle products. In addition we welcome responses from self-selected companies. Please see the FAQs page for further information on how we select companies.
How to get started

All responses to our questionnaire must be submitted to us through the CDP online response system (ORS).

If you have reported to us before and we have your contact details, you will receive an email invitation at the start of each disclosure period. Otherwise, to respond please email respond@cdp.net at any time before or during the disclosure period.

Companies reporting to CDP's forests program can submit their information so that it is viewable on our website or restrict access so that it is viewable only by our investor signatories. Please note that companies can start by submitting a partial response just looking at part of their business or a selected commodity.

Support for responding companies
We recommend that disclosing companies read the guidance document, which provides essential information and support for each question in the questionnaire. You can find our guidance document and other helpful information in the guidance section of this website, alongside answers to frequently asked questions. We also encourage companies to check the scoring methodology when formulating their response.
Reporting timeline

February 2016: Request sent to companies.

30 June 2016: Deadline to respond.

Late November/ Early December: Public forests program response data is published on our website

Legal and General
[The forests program] provides a vital framework for key industries to disclose exposure to commodities that threaten global forests, allowing investors like us to gain valuable insight into management’s commitment, robustness of their process and control over their supply chain networks.

Meryam Omi,
Head of Sustainability,
Legal and General

   
 
 
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