Implications for the Private Sector of Non-Carbon Effects of Tropical Deforestation

The document highlights that tropical deforestation contributes 50% more to global warming than carbon emissions alone suggest due to biophysical processes like albedo, evapotranspiration, surface roughness, and aerosols. These non-carbon effects cause immediate local and regional climate disruptions, such as increased temperature extremes and erratic rainfall, which directly threaten crop yields and worker productivity. For example, deforestation in Brazil is linked to a 12% loss in soy productivity, and Amazonian deforestation is plausibly linked to a 2017 drought in Argentina costing the economy approximately $4.6 billion. The authors argue that while many companies have made deforestation-free commitments to manage reputational risks, they often overlook these material operational risks. To mitigate these, the report recommends that companies and investors increase coordination through coalitions, leverage nature-related financial disclosures, and engage in jurisdictional-scale conservation efforts that extend beyond their own direct supply chains.

• Tropical deforestation has a greater impact on global warming than carbon emissions alone indicate, contributing 50 percent more to the phenomenon when biophysical effects are included.
• Forests influence climate stability through four primary non-carbon biophysical processes: albedo (solar energy reflection), evapotranspiration (moisture release for cooling), surface roughness (wind turbulence that lifts heat), and the release of aerosols.
• Deforestation creates immediate material risks to agricultural productivity through local temperature increases and regional rainfall disruption. In Brazil, temperature extremes from nearby deforestation caused a 12 percent drop in soy yields, costing US$99 per hectare annually. In Argentina, a 2017 drought linked to Amazon deforestation resulted in crop losses exceeding $1.5 billion and a total economic impact of about $4.6 billion.
• Deforestation-induced heat stress reduces labor productivity and increases health risks for rural workers. In the Brazilian state of Pará, the number of summer daylight hours available for outdoor work without heat stress has decreased by more than one hour per day.
• Despite high-profile commitments to eliminate commodity-driven deforestation, implementation remains inconsistent; one-third of the companies with the highest exposure to tropical deforestation have made no such commitments.
• Financial institutions continue to hold significant exposure to forest-risk commodities, with $40 billion in bonds and shares, which is more than three times the amount covered by the Global Forest Finance Pledge at COP26.

APA

Gerow, A., & Seymour, F. (n.d.). Implications for the Private Sector of Non-Carbon Effects of Tropical Deforestation. World Resources Institute. https://files.wri.org/d8/s3fs-public/2023-03/implications-private-sector-non-carbon-effects-tropical-deforestation.pdf

Chicago

Gerow, Alice, and Frances Seymour. Implications for the Private Sector of Non-Carbon Effects of Tropical Deforestation. World Resources Institute, n.d. https://files.wri.org/d8/s3fs-public/2023-03/implications-private-sector-non-carbon-effects-tropical-deforestation.pdf.

Wikipedia

{{cite report |last1=Gerow |first1=Alice |last2=Seymour |first2=Frances |title=Implications for the Private Sector of Non-Carbon Effects of Tropical Deforestation |publisher=World Resources Institute |url=https://files.wri.org/d8/s3fs-public/2023-03/implications-private-sector-non-carbon-effects-tropical-deforestation.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{gerowndimplications, author = {Gerow, Alice and Seymour, Frances}, title = {{Implications for the Private Sector of Non-Carbon Effects of Tropical Deforestation}}, institution = {World Resources Institute}, url = {https://files.wri.org/d8/s3fs-public/2023-03/implications-private-sector-non-carbon-effects-tropical-deforestation.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }