In 2009, the British government invested heavily in a new program called the Forest Footprint Disclosure Project (FFD), which proactively investigated international multinational corporations, including Fortune 500 and FTSE 350 companies, as well as other businesses closely associated with forest development or severe deforestation.
This project involved an expert-designed forest footprint survey questionnaire, which was then completed by multinational corporations. The questionnaires were due in October each year, and the results were announced the following January. These companies were categorized into three groups: (1) those with a strong commitment to forest conservation and good performance; (2) those actively improving their business strategies; and (3) those ignoring the survey and refusing to respond. By responding to this questionnaire, these companies were compelled to understand the direct and indirect damage their operations could cause to forests, and it also served as a warning to companies that disregard environmental issues.
The survey content investigates mainly includes five themes: timber, palm oil, soybeans, beef, and bioenergy, all of which are characterized by deforestation or competition with forests for land.
Are the furniture in your home made from timber illegally logged from forests?
Where does the palm oil used in airplane meals come from?
Are the beef and soy products sold in supermarkets and the biodiesel sold at gas stations grown on land cleared after the Amazon rainforest was cleared?
When the price of these everyday consumer goods exceeds the value of forests, it easily incentivizes producers to remove forests to grow more palm oil, soybeans, or convert forests into cattle ranches. This means many consumers unknowingly contribute to deforestation, directly or indirectly, when using these products. Furthermore, the survey for this project has been endorsed by investors in a $2.2 trillion group fund that believes producing unsustainable agricultural consumer goods poses investment risks. Annual reports identify leading companies in reducing their forest footprint. The table below lists the leading companies in various industries in 2012.
Industry
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Industry leading manufacturers
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agricultural products
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New Britain Palm Oil Ltd
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Food and staple foods
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Sainsbury’s Supermarkets Ltd
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General retail
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Marks and Spencer plc
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industry
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Dalhoff Larsen & Horneman
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media
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British Sky Broadcasting
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Oil and gas
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Greenergy International Ltd
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Packaged foods and meat
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Marfrig Group / Unilever
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Paper and forest products
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Mondi PLC
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Personal hygiene products
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L’Oreal
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Textile industry
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PrimeAsia Leather Corporation
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Tourism and leisure industry
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British Airways
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power industry
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Drax Group
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In June 2012, the International Integrated Reoprting Council (IIRC) announced that it would integrate the Forest Footprint Disclosure Project into the Carbon Disclosure Project (CDP), with completion expected within two years. The integration plan was scheduled to begin at the end of 2013. After the integration, the CDP would become the largest information disclosure system internationally, disclosing information on greenhouse gases, climate change, water resources, and forests, all within a unified framework.
Sources: Forest Footprint Disclosure (2013-02-08) (Compiled by PIDC)
Attachment file:Annual.Review.2012.pdf
