CDP-结束森林砍伐的集体努力-公司提升抱负的途径（英）-2021-46正式版

DISCLOSUREINSIGHTACTIONTHECOLLECTIVEEFFORTTOENDDEFORESTATIONAPATHWAYFORCOMPANIESTORAISETHEIRAMBITIONMarch2021CONTENTS04ABOUTTHISREPORT05EXECUTIVESUMMARY-Gainingmomentumoncollectiveaction07KEYFINDINGS08THEPATHWAYTOADEFORESTATION-FREEFUTURE10CORPORATEACTIONONDEFORESTATION-Thestateofplay16THETRAILBLAZERS-Mars:Apalmoilcasestudy20DEFORESTATION-FREEBUSINESSISGOODBUSINESS22THEWAYFORWARD23PERFORMANCEBYCOMMODITY38ANNEXA-METHODOLOGY42ANNEXB-KEYPERFORMANCEINDICATORSToreadcompanyresponsesinfull,pleasegoto/en/responsesImportantNoticeThecontentsofthisreportmaybeusedbyanyoneprovidingacknowledgmentisgiventoCDP.ThisdoesnotrepresentalicensetorepackageorresellanyofthedatareportedtoCDP.Ifyouintendtorepackageorresellanyofthecontentsofthisreport,youneedtoobtainexpresspermissionfromCDPbeforedoingso.Norepresentationorwarranty(expressorimplied)isgivenbyCDPastotheaccuracyorcompletenessoftheinformationandopinionscontainedinthisreport.Youshouldnotactupontheinformationcontainedinthispublicationwithoutobtainingspecificprofessionaladvice.Totheextentpermittedbylaw,CDPdoesnotacceptorassumeanyliability,responsibilityordutyofcareforanyconsequencesofyouoranyoneelseacting,orrefrainingtoact,inrelianceontheinformationcontainedinthisreportorforanydecisionbasedonit.AllinformationandviewsexpressedhereinbyCDParebasedontheirjudgmentatthetimeofthisreportandaresubjecttochangewithoutnoticeduetoeconomic,political,industryandfirm-specificfactors.Guestcommentaries,whereincludedinthisreport,reflecttheviewsoftheirrespectiveauthors;theirinclusionisnotanendorsementofthem.CDP,itsaffiliatedmemberfirmsorcompanies,ortheirrespectiveshareholders,members,partners,principals,directors,officersand/oremployees,mayhaveapositioninthesecuritiesofthecompaniesdiscussedherein.Thesecuritiesofthecompaniesmentionedinthisdocumentmaynotbeeligibleforsaleinsomestatesorcountries,norsuitableforalltypesofinvestors;theirvalueandtheincometheyproducemayfluctuateand/orbeadverselyaffectedbyexchangerates.‘CDP’referstoCDPNorthAmerica,Inc,anot–for-profitorganizationwith501(c)3charitablestatusintheUS,andCDPWorldwide,aregisteredcharitynumber1122330andacompanylimitedbyguarantee,registeredinEnglandnumber05013650.©2021CDP.Allrightsreserved.ABOUTTHISREPORTIn2020,687companiesreportedthroughCDPonthestepstheyaretakingtoeliminatedeforestationfromtheiroperationsandsupplychains.Thisreportlooksatdatadisclosedby553companiesusingorproducingsevencommoditiesresponsibleforthemajorityofagriculture-relateddeforestation:palmoil,timberproducts,cattleproducts,soy,naturalrubber,cocoaandcoffee.Thesecompanies’currentgovernance,strategiesandimplementationmeasuresareassessedagainstaseriesofindustry-acceptedmeasurestoreducedeforestation,brokendowninto15KeyPerformanceIndicators(KPIs)andsplitintosixcategories.BasedontheiradoptionoftheKPIs,companiesarealsomappedontoapathwaytowardsdeforestation-freemarketsandaforest-positivefuture,allowingcompaniestobenchmarkagainstpeersandfollowinthefootstepsofpioneers.553companiesusingorproducingsevencommoditiesresponsibleforthemajorityofagriculture-relateddeforestationEXECUTIVESUMMARYGAININGMOMENTUMONCOLLECTIVEACTIONIgnoringdeforestationwillcostbusinessesfarmorethantakingdefinitiveactionTheCOVID-19pandemichassentshockwavesthroughouttheglobaleconomy,impactingbusinessesacrossdisparatesectorsandslashinganestimated$22trillionoffglobalGDPby2025.1Thisimpactunderscorestheneedtobetterprotectandrestoretheworld’sforests,whichactasavitalbufferbyreducingtheriskofdiseasesbeingpassedfromanimalstohumans,therebyprovidingprotectionfromtheimpactofestimated10millionhectaresofforestshavebeenlosteveryyear.ThegreatestSince2015anestimated10millionhectaresofforestshavebeenlost4deforestationdriveristheexpansionofcommercialagricultureandtreeplantations.Morethanhalfofallglobalforestlossassociatedwithagriculturebetween2001to2015wasduetotheproductionandconsumptionofjustsevencommodities-cattleproducts,palmoil,soy,timberproducts,naturalrubber,cocoaandcoffee.Over72millionhectaresofforestswerelosttodiseaseslikeCOVID-19.2HaltingdeforestationisalsocriticaltoachievingtheParisAgreementandSustainableDevelopmentGoals.Thereisno1.5degreesCelsiuswithoutforests.Allpathwaysconsideredeveryyearactionmakewayfortheirproduction.5bytheIntergovernmentalPanelonClimateChange(IPCC)assumeahaltindeforestationandsignificantforestrestorationoverthecomingdecades-tobeinlinewitha1.5degreesCelsiuspathway,nofurtherdeforestationcanThesituationinsomeregionsisatabreakingpoint.IntheBrazilianAmazonrainforest,deforestationhitatwelve-yearhighin2020aboutreachinga‘forest-to-degraded-savanna’tippingpoint.Ifflippedintoa6andscientistsarewarningoccurfrom2030onwards3.Apartfrom7globalandlocalclimateregulation,forestsalsoprovidesocietyandbusinesseswithotheressentialbenefits-fromlivelihoodstowatersupplyandregulation,protectionfrompollution,soilerosioncontrolandahomeforbiodiversity.Forestsarevitalforasustainableworld.savanna,thiscouldhelpcascadeusintoa“HothouseEarth”pathway,acceleratingandlockinginmuchhotterwarming,above1.5degreesCelsius,inspiteofanyBetween2001to2015over72decarbonizationattempts.Withforest8losscomesincreasedenvironmentalrisksaswellasmorepotentialpandemicsandfurthereconomicimpacts.Urgentactionondeforestationneedstohappennow.millionshectaresofforestswerelostDespitethiscrucialroleanddespitegovernments,financialinstitutionstomakewayfortheandcompaniespledgingtoeliminateCompaniesplayakeyroleinendingdeforestationbecausetheirrevenuesdependoncommoditiesthatcauseit.Asakeysourceofdemandforthesedeforestationfromagriculturalproductionby2020,deforestationcontinuesatpace:since2015,anproductionofsevencommodities51.ꢀ

InternationalꢀMonetaryꢀFund.ꢀ(2020).ꢀWorldꢀEconomicꢀOutlookꢀ-ꢀAꢀLongꢀandꢀDifficultꢀAscent.ꢀ/en/Publications/WEO/Issues/2020/09/30/world-economic-outlook-october-2020ꢁ2.Afelt,A.,Frutos,R.andDevaux,D.(2018).Bats,Coronaviruses,andDeforestation:TowardtheEmergenceofNovelInfectiousDiseases?/pmc/articles/PMC5904276/ꢁ3.Rogelj,J.,etal.(2018).Mitigationpathwayscompatiblewith1.5°Cinthecontextofsustainabledevelopment.https://www.ipcc.ch/sr15/chapter/chapter-2/ꢁ4.ꢀ

FAO.ꢀ(2020).ꢀGlobalꢀForestꢀResourcesꢀAssessmentꢀ2020ꢀ–ꢀKeyꢀfindings.ꢀ/3/CA8753EN/CA8753EN.pdf5.WRI.(2020).GlobalForestsReview./gfr/forest-extent-indicators/deforestation-agriculture6.INPEinBBC.(2020).Brazil’sAmazon:Deforestation‘surgesto12-yearhigh’.https://www.bbc.co.uk/news/world-latin-america-551303047.Lovejoy,T.andNobre,C.(2019).Amazontippingpoint:Lastchanceforaction./10.1126/sciadv.aba29498.Steffen,W.,etal.(2018).TrajectoriesoftheEarthSystemintheAnthropocene./10.1073/pnasommodities,theyarealsoabletoinfluencehowtheyareproducedanddrivechangeatscale.trailsbehindthatonclimatechangeandwatersecurity–only31%ofrequestedcompaniesdisclosedin2020.Progresstoenddeforestationtodatehasbeenslow,limitedtocertainproducts,geographiesorvaluechains.Themajorityofthemarketisfallingshortoftheambitionneeded.DisclosinginformationaboutforestconservationthroughCDPenablesustotakeactionondeforestationrisksandincorporate“zerodeforestation”intoouroverallsustainablebusinessstrategy.Encouragingly,moreandmorecompaniesarebeginningtorecognizethebenefitsofactingondeforestation.Inspiteof2020’schallenges,thenumberofcompaniesdisclosingdatathroughCDPonhowtheyaremanagingdeforestationhasincreasedby27%sincelastyear-687companiesdiscloseddatain2020.ThismeansthatCDPhasthemostcomprehensivedatasetoncorporateforestaction,ensuringcompaniesandinvestorscanaddressdeforestationbyunderstandingtheirvaluechains,thecurrentmarketstate,wherecoursecorrectionisChenBinDirectorofPublicRelations,FujianSunnerGroupThepastdecadeoffailedpledgeshasalsotaughtusthereisnotasimplesolutiontostopdeforestation.Instead,therightmixofsolutionsisneeded-withcollaborationandtransparencyattheheartofit.Ambitiouscollectiveactionondeforestationisneededtoachieveglobalclimategoals,curbbiodiversitylossandmanagepandemicrisks.CDPistrackingbothindividualcompanyprogressandthemarkets’collectiveadvancementstowardsaforest-positivefuturewherecollaborationisthenorm,deforestationisneededandlearnfrombestpractice.Transformationstartswithdisclosure.However,toenddeforestation,itisclearthescaleandspeedofactionmustincrease.Disclosureondeforestationstillreversedandforestcoverhasincreased.6KEYFINDINGS1Adecadeofprivatesectorcommitmentshasfailedtoeliminatecommodity-drivendeforestation.Thegoaltoeliminatedeforestationfromproductionofagriculturalcommoditiesby2020hasnotbeenmet.2However,therearepioneersleadingthemarkettransformation.81companiesachievedꢀmoreꢀthanꢀeightꢀKPIs,ꢀdemonstratingꢀhighꢀlevelsꢀofꢀtraceability,ꢀcertification,ꢀengagement,restorationandcompliancewithno-deforestationcommitments.34Corporateactionondeforestationisbecomingthenorm.In2020,93%ofcompanieshavetakenatleastoneindustry-acceptedmeasuretosafeguardforests.Insomecommodities,progressisstrong-inothersitislacking.Morecompaniesaredemonstratingprogresstowardseliminatingpalmoil-relateddeforestation,evenoutperformingcompaniesintimberproductsupplychains.Companiesoperatinginthecattleproductsmarketandsoysupplychainscontinuetotrailbehind.56risksfromdeforestationwasestimatedatUS$53.1billionwhilethecostofrespondingThecostofinactionisgreaterthanthecostofaction.Inꢀtotal,ꢀtheꢀfinancialꢀimpactꢀofꢀ9toallriskswasjustoverUS$6.6billion10.Ambitionandcollaborationislacking.Toofewsuitabletargetshavebeensetbycompaniesandnotenoughbusinessesareparticipatingincollaborativemeasurestosuccessfullytransitiontoaforest-positivefuture.Companiesmuststepuptoprotectforests,endbiodiversitylossandtackleclimatechange.Keyfiguresfor2020:51519687companiesinvestorspurchasingandcompaniesdiscloseddatathroughCDPin2020withassetsofUS$106trillionrequestedthisinformation55327%companies31%increaseindisclosingdiscloseddataononeormoreofthesevencommoditiesresponsibleforthemajorityofagriculturaldeforestation:requestedcompanies,companiescomparedto2019disclosedin20209.Reportedby151companies10.Reportedby206companies7THEPATHWAYTOADEFORESTATION-FREEFUTUREBasedonindustry-acceptedbestpracticemeasuresandinformedbytheAccountabilityFramework,theseKeyPerformanceIndicators(KPIs)arethemostcomprehensivewaytoassesscorporateprogressondecouplingcommoditiesfromdeforestation.Coveringallthevitalelementsfromgovernance,riskmanagement,totargets,collectiveactionandrestoration,theysetoutaclearpathwayfortheessentialactioncompaniesmusttaketotransformtheirbusinesspracticesandcapitalizeonopportunitiestoprotectandrestoreforests.RisksGovernanceStrategymanagement12345Board-leveloversightStrategyForest-relatedPolicyCommitmentsbusinessplansriskassessmentoneoffivekeyboardageneralorrobust11publicforestissuesfullyintegratedintoallpartsoflong-termstrategicbusinessplans.comprehensive12forest-relatedriskassessment.positionswithoversightofforest-relatedissues-BoardChair,Directoronboard,ChiefExecutiveOfficer(CEO),ChiefFinancialOfficer(CFO),ChiefRiskOfficer(CRO).commodity-specificpubliclyavailablecompany-wideno-deforestationpolicy.no-deforestationcommitmentsthatcover100%supplyandaresettobecompletedby2030.Measuring&targets678910TargetsCertificationTraceabilityComplianceLegalcompliancelinearprogresstowardstargetstosource100%no-deforestationcertifiedcommoditiesortrace100%ofsupplybacktoatleastmunicipality.atleast90%ofcommoditycertifiedinano-deforestationcomplianttracemorethan90%oftheirproduction/consumptionbacktoatleastMunicipalityorequivalentasystemtocontrol,monitor,andverifycompliancewithnodeforestationpolicies/commitmentsthatcoversallrelevantoperationsandsupplychainsandshowsmorethan90%oftotalvolumeincompliance.companyorsuppliercompliancewithforestregulationsand/ormandatorystandardsareassessedifsourcingcommoditiesfromregionswithahighcertification.deforestationrisk.11.No-deforestationforests-relatedpubliccommitmentthatistimebound,settobecompletedby2030,includesacutoffdatebefore2020,withFPIC,covers100%ofproduction/consumptionandappliestoallrelevantoperations8Valuechainengagement111213SupplychainSupplychainSupplychainengagement–beyondfirst-tiersuppliersworkingbeyondfirst-tiersupplierstomanageandmitigatedeforestationrisksthroughsupplychainmappingorcapacitybuilding.engagement–engagement–smallholdersdirectsuppliersworkingwithsmallholderstosupportgoodagriculturalpracticesandreducedeforestationorconversionofnaturalecosystemsthoughfinancialortechnicalassistance.supportingandimprovingsuppliercapacitytocomplywithforest-relatedpolicies,commitmentsandotherrequirementsthroughfinancialortechnicalassistance.14Forest-relatedexternalactivitiesorinitiativesEcosystemrestorationandprotection15participatinginjurisdictionalapproachestopromotetheimplementationofforest-relatedpoliciesandcommitments.Beyondno-deforestation*supportingorimplementingecosystemrestorationandprotectionprojects.12.Fullcoverageofrelevantoperationswithrisksbeyondsixyearsconsideredandavailabilityofforestriskcommodities,qualityofforestriskcommodities,impactofactivityonthestatusofecosystemsandhabitats,socialimpacts,localcommunitiesareincludedintheassessment*Assessedregardlessofcommodity,simplyasameasureofifacompanyisparticipatingorsupportingsuchprojectsornot.9CORPORATEACTIONONDEFORESTATIONTHESTATEOFPLAYActionisbecomingthenormforcompaniesdisclosingthroughCDPTakingstepstoeliminatedeforestationisbecomingthemarketnorm-93%(515)ofallcompanieswhoreportedthroughCDPin2020aretakingatleastoneindustry-acceptedactiontoaddressdeforestation.However,mostofthesecompaniesaretakinginsufficientaction-82%ofcompanies(453)areatthedevelopingstage,incorporatingbetweenoneandeightindustry-acceptedmeasuresforatleastonecommodity.Table1.TheclassificationofcompaniesbasedonthenumberofKPIstheyareincorporatingCompanyclassificationNumberofKPIsadoptedEarlyNoneDevelopingMatureBetween1and8KPIsBetween9and12KPIsAllrelevantKPIs-apartfromthoserelatingtohighlevelsofno-deforestationcompliantcertification14BestpracticeForatleastone13ofthesevenkeycommodities(palmoil,timberproducts,cattleproducts,soy,naturalrubber,cocoaandcoffee):{

46companies(8%)areintheearlystageoftransition{

453companies(82%)aredeveloping{

79companies(14%)aremature{

4companies(1%)aredemonstratingbestpractice14Essity,L’Oréal,MarsandTetraPak:Figure1.Theoverallmarketsplit–companiesmappedontoapathwaytowardsdeforestation-freemarketsbasedonthenumberofKPIstheyareincorporatingforatleastonecommodity1%8%82%14%Overall0%25%50%75%BestPractice100%EarlyDevelopingMature13.Companiescandiscloseonmultiplecommoditiesandbetakingadifferentvarietyofactionsacrossthedifferentcommoditiesthereforebeforexampleintheearlystageforonewhilemature(exhibitingmorethaneightKPIs)foranother14.NocompanieshaveadoptedallmeasuresacrossallKPIs-therefore,companieslabelledbestpracticearethosethatadoptedallmeasuresapartfromonesetrelatingtohigh-levelsofno-deforestationcompliantcertificationꢀ-ꢀeitherꢀtargetsꢀrelatingꢀtoꢀno-deforestationꢀcompliantꢀcertificationꢀorꢀhighꢀlevelsꢀofꢀcommoditiesꢀcertifiedꢀtoꢀaꢀno-deforestationꢀcompliantꢀcertification.ꢀSeeꢀappendixꢀforꢀmoreꢀdetails10Beyondtheoverallmarketpicture,detailedCDPdataenablesadeeperdiveintoprogressagainsteachKPI.Figure2.OverallrateofadoptionandprogressagainsteachKPIamongallcompaniesandcommodities.AfullbreakdownoffiguresisavailableintheAnnex-pg.42Boardlevel-oversightPoliciesCommitmentsStrategyRiskassessmentTargetsCertificationTraceabilityNoconversionand/ornodeforestationcommitmentcomplianceLegalcomplianceSupplychainengagement-smallholdersSupplychainengagement-directsuppliersSupplychainengagement-beyondfirst-tiersuppliersForest-relatedexternalactivitiesorinitiativesEcosystemrestorationandprotection0%25%50%75%100%Yes–fullKPIYes-partialNo11RisksGovernanceStrategymanagement12345Board-leveloversightStrategybusinessplansForest-relatedriskassessmentPolicyCommitments81%ofcompanieshaveboard-leveloversightofforest-relatedissuesandinnearlyhalfofcompaniesoneofthe5keyboardpositionshasoversightofforest-relatedissues.Onlyoneinthreereportingcompanieshaveeitherageneralorcommodityspecificpubliclyavailablecompany-wideno-deforestationpolicy.Onlyevery1in10companieshaverobustno-deforestationcommitmentsthatcover100%supplyandaresettobecompletedby2030andincludeFree,Prior,InformedConsent15andacutoffdate.Aroundhalfofallcompaniesintegrateforestissuesintoallpartsoftheirlong-termstrategicbusinessplansincludinginfinancialplanning,76%ofcompaniesconductariskassessmentthatincludesforest-relatedissues.Howeveronlyaminorityofcompanies(20%)conductastrategyandobjectives.comprehensiveriskassessment16.Measuring&targets678910TargetsCertificationTraceabilityComplianceLegalcomplianceOnly10%ofcompanieshaveatargettotrace100%ofthecommoditiestomunicipalityorequivalentlevelandaremakinglinearprogresstowardsorhavealreadyachievedthistarget.10%(1in10)ofcompanieshaveatleast90%ofonecommodityOneinfiveThreeinfivecompanieshaveasystemtocontrol,monitor,orverifycompliancewithnoconversion/nodeforestationpoliciesorcommitmentsforatleastoneofthecommoditiestheyreporton.78%ofcompaniesthatproduceorsourcecompaniescantracemorethan90%ofonecommoditiesfromregionswithahighcertifiedinacommoditytomunicipalityorequivalentlevel.deforestationriskassesstheirownorsuppliercompliancewithforestregulationsand/orno-deforestationcompliantcertification.mandatorystandardsforatleastonecommodity.11%ofcompanieshaveatargettosource100%certifiedno-deforestationcompliantcommoditiesandaremakinglinearprogresstowardsorhavealreadyachievedthistarget.However,only40%ofcompaniesreportover90%oftotalvolumeofatleastonecommodityincompliance.Only29%ofcompanieshavesuchhighlevelsofcomplianceforrobustno-deforestation19%ofcompanieseitherhavetargetstosource100%certifiedcommitmentsorpolicies.no-deforestationcompliantcommoditiesortrace100%tomunicipalityorequivalentlevelandaremakinglinearprogresstowardsorhavealreadyachievedthistarget.15.ꢀ

Free,ꢀPriorꢀandꢀInformedꢀConsentꢀ(FPIC)ꢀisꢀaꢀspecificꢀrightꢀthatꢀpertainsꢀtoꢀindigenousꢀpeoplesꢀandꢀisꢀrecognisedꢀinꢀtheꢀUnitedꢀNationsꢀDeclarationꢀonꢀtheꢀRightsꢀofꢀIndigenousꢀPeoplesꢀ(UNDRIP).ꢀItꢀallowsꢀthemꢀtoꢀgiveorwithholdconsenttoaprojectthatmayaffectthemortheirterritories,withdrawitatanystageandenablesthemtonegotiatetheconditionsunderwhichtheprojectwillbedesigned,implemented,monitoredandevaluated.12AlackofsufficientmeasurableambitionandprogressTomovetheneedleoncommodity-drivendeforestation,weneedmorecompaniestotakeagreatervarietyofbolder,fasterandmorecollaborativeaction.Tobeinlinewitha1.5degreesCelsiuspathway,globaldeforestationneedstoendby2030andsubstantialrestorationneedstotakeplace18.However,thecurrentlevelofambitionisnotenoughtoevenshiftthemajorityofcompanies–whoareinthedevelopingstage–toamaturestageinthenext10years.Differenceinambitionamongthecommoditiesisalsoevident.Targetslinkedtonoconversionandzeronet/grossdeforestationaremorefrequentamongcompaniesreportingonpalmoil.ThisdifferenceincompanyactionacrosscommoditiescanalsobeseenintheKPIs.Forexample,itwasmostcommonforcompaniesreportingonpalmoiltohaveageneralorcommodityspecificpubliclyavailablecompany-wideno-deforestationpolicy(43%ofcompanies).Havingsuchpolicieswasleastlikelyforbusinessesreportingonnaturalrubber(15%ofcompanies).Specific,quantitativetargetswhichcanbeobjectivelyevaluatedandverifiedareessentialforthis-andcurrently,theyarescarce.Only26%ofcompanies(146)haveatargetlinkedtoanodeforestation19commitmentforatleastonecommodity,whetherrelatedtotraceability,certification,compliance,supplierengagementorrestoration.Certificationisthemainfocus-targetsrelatingtosupplierengagementandrestorationarescant.Ingeneral,companiesaremakingmoreprogresstowardseliminatingdeforestationfrompalmoilsupplychains,evenoutpacingcompaniesintimberproductssupplychains–thecommoditythathasseenmosteffortinthepast.Companieshavebeenslowtoadoptthecomprehensiveprogressrequiredincattleandsoysupplychains,whichcontinuetotrailbehind.Figure3.Percentageofcompaniesreportingeachtypeoftargetlinkedtoanoconversionorzeronet/grossdeforestationcommitment100%80%60%40%20%0%OverallTimberproductsPalmoilCattleproductsSoyRubberCocoaCoffeeTraceabilityThird-partycertificationAssessand/orverifycomplianceEngagementwithdirectsuppliersEcosystemrestorationEngagementwithsmallholdersEngagementwithindirectsuppliers18.Rogelj,J.,etal.(2018).Mitigationpathwayscompatiblewith1.5°Cinthecontextofsustainabledevelopment.https://www.ipcc.ch/sr15/chapter/chapter-2/19.Noconversionorzeronet/grossdeforestationcommitments14THETRAILBLAZERSSomeleadersarespearheadingthemarkettransformation-81companiesshowedamatureorbestpracticeapproachtotacklingdeforestationforatleastonecommodity,meaningtheywereaddressingmorethaneightKPIs.Ofthese,fourcompanies(Essity,L’Oréal,MarsandTetraPak)haveadoptednearlyallKPIsforonecommodity,leadingthewayontheactiontohaltdeforestation.Thissectionexploresoneexample:howMarsisshowingleadershipandbestpracticeonpalmoil.GotoCDP’swebsite20toreadMars’oroneoftheotherbestpracticecompany’sfulldisclosure.In2020,Marsdisclosedonfivecommodities-cattleproducts,cocoa,palmoil,soyandtimberproducts–throughCDP.Itistakingatleasteightindustry-acceptedactionsforeachcommodityandisdemonstratingbestpracticeforpalmoilbyadoptingmeasuresacrossthewholerangeofKPIsbaroneset21.Marshastakenthefollowingactionstoaddressdeforestationfrompalmoilinitsvaluechain:MARSApalmoilcasestudy1Board-leveloversightAllaspectsofMars’ClimateAction,DeforestationandLandUseChangestrategiesandtargetsaretheresponsibilityoftheBoardandledbytheBoardChair.2PolicyGovernanceMarshasbothapubliclyavailablegeneralpolicyandpalmoilspecificcompany-wideno-deforestationpolicy,thePalmOilPositivePlan.ThroughitsPalmPositivePlan,Marsaimstodeliver100%deforestation-freepalmoilbytheendof2020andadvancerespectforhumanrightsacrossitssuppliers’extendedsupplychains.3CommitmentsOnpalmoil,Marshasapublicno-deforestationcommitmentthatcovers100%ofitspalmoilsupply,includesacutoffdateof2015andatargetdateof2020.Amongotheraspects,Marsexpectsitssuppliersto:{

Ensurenodeforestationorconversionofprimaryforestornaturalecosystemsofhighconservationvalue(HCV);abalancedandtransparentdisputeresolutionprocess;{

Respectfarmers’andcommunities’landrightsandtherightsofindigenousandforest-dependentpeople;{

Ensurenodevelopmentinhighcarbonstock(HCS)areas;{

Supportfreepriorandinformed{

SupportfarmersandplantationownerstocomplywithMars’consent;{

Resolvelandrightsdisputesthroughdeforestation-relatedrequirements.20./en/responses-Freeregistrationrequired.21.ꢀ

Eitherꢀtargetsꢀrelatingꢀtoꢀno-deforestationꢀcompliantꢀcertificationꢀorꢀhighꢀlevelsꢀofꢀcommoditiesꢀcertifiedꢀtoꢀaꢀno-deforestationꢀcompliantꢀcertification164StrategyMarsintegratesforestissuesintoallpartsoflong-termstrategicbusinessplansincludingitslong-termbusinessobjectives,strategyforlong-termobjectivesandfinancialplanning.FinancialperformanceandpositivesocietalimpactguideMars’decision-makingbecause“abusinessmodelthatfocusesexclusivelyonfinancialperformanceisnotsustainableordesirable”.ThisapproachensuresMars’financialplanninghelpsitachievenear-termresultssoitcanremainasuccessfulbusinessforthenext100years.IthasalsoresultedinsustainabilityinvestmentsofnearlyUS$1billionsince2016.Strategy5RiskassessmentMarsreportsassessingforest-relatedrisksacrossitspalmoilsupplychain,withrisksbeyondsixyearsconsideredandincludes:theavailabilityofforestriskcommodities,qualityofforestriskcommodities,impactofactivityonthestatusofecosystemsandhabitats,socialimpactsandlocalcommunitiesintheassessment