Deforestation

The report evaluates the effectiveness of VSSs and corporate strategies in mitigating deforestation, particularly for commodities like soy, palm oil, cocoa, and timber. It finds that while preventive measures (Plan/Prepare) are strong and improving through geospatial technology, immediate response and recovery mechanisms are often generic or limited. The report advocates for a 'smart mix' of solutions, combining certification with landscape-level initiatives and financial incentives to build long-term resilience and sustainable value chains.

• Prevention measures (Plan/Prepare) are the most developed area for VSSs, with most now incorporating no-conversion provisions, ecosystem protection, and risk assessments. The use of geolocation and satellite monitoring is increasing, and clear cut-off dates serve as strong deterrents, although geospatial requirements and social safeguards like free, prior, and informed consent (FPIC) are not universal across all VSSs.
• Immediate response mechanisms (Respond) in VSSs are often generic, typically relying on audits and general corrective action plans (CAPs). While some companies pause or halt non-compliant suppliers, deforestation-specific CAPs and escalation timelines vary significantly across the private sector.
• Recovery provisions (Recover) focus on ecological and social remedies, such as the restoration of damaged areas and grievance outcomes. For VSSs, these are often tied to restoration of degraded areas, while companies use improved farm practices, though these need better links to verified remediation and producer support.
• Long-term transformation (Adapt) is emerging through requirements for tree cover on farms and landscape-level actions. Companies are shifting toward jurisdictional initiatives that align sourcing with local land-use plans and restoration of degraded land, though these require multi-year finance and government support to scale.
• Private sector actors are increasingly using advanced technology for traceability and monitoring, such as polygon mapping and blockchain. For example, Cargill mapped 153,000 cocoa farms in Côte d’Ivoire and Ghana, and Ferrero mapped 200,000 farmers, achieving 93% traceability to the farm level.
• Financial incentives, such as Payments for Ecosystem Services (PES) and low-interest loans, are used to motivate farmers to protect forests. An example is the Responsible Commodities Facility Cerrado Programme, which disbursed USD 11 million in loans to 32 farms in Brazil's Cerrado region to promote deforestation-free soy.
• Agroforestry is highlighted as a key nature-based solution for recovery and adaptation. Unilever's Cocoa and Forests Initiative in Côte d’Ivoire planted 286,277 multi-purpose trees across 2,048 farms as of 2023, supporting the restoration of 8,360 hectares of forest and farmland.
• A 'smart mix' of solutions—combining VSS certification with landscape interventions and multistakeholder partnerships—is more effective than certification alone. Examples include Ferrero's Palm Oil Charter and Unilever's Mosaik Initiative, which integrate certification with governance reforms and smallholder mapping.
• Community forestry models, such as the Maya Biosphere Reserve in Guatemala, have shown high success in preventing deforestation. In this reserve, deforestation remained near zero in nine original active concessions over 20 years, outperforming strictly protected areas.

APA

Verma, R., Sarmiento, F., & Luna, E. (2025). Deforestation. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-12/value-chains-deforestation.pdf

Chicago

Verma, Rupal, Florencia Sarmiento, and Erika Luna. Deforestation. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-12/value-chains-deforestation.pdf.

Wikipedia

{{cite report |last1=Verma |first1=Rupal |last2=Sarmiento |first2=Florencia |last3=Luna |first3=Erika |title=Deforestation |publisher=International Institute for Sustainable Development |date=December 2025 |url=https://www.iisd.org/system/files/2025-12/value-chains-deforestation.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{verma2025deforestation, author = {Verma, Rupal and Sarmiento, Florencia and Luna, Erika}, title = {{Deforestation}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = dec, url = {https://www.iisd.org/system/files/2025-12/value-chains-deforestation.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }