Forest Footprint Disclosure (FFD) Project, is not just about carbon.
It is a global imperative in the move towards more responsible and
sustainable use of natural capital. This underpins wealth creation
in the world economy and the security of water, energy, food and
health for millions of people.
Number of companies who have disclosed their forest
footprint for the last year has increased by 15% compared to last year, said
the fourth annual Forest Footprint Disclosure (FFD) Report. The recently
released report revealed that 100 companies have voluntarily disclosed their
forest footprint. However, the ever growing gap between the leaders of the
forest risk commodity sectors and their peers has still been a concern, noted
FFD welcomed the increase in discloser numbers, especially the first reports
from multi-nationals such as Colgate-Palmolive Co., Groupe Danone, Gucci and HJ
Heinz Company, as well as the widening geographic reach to Mexico and Japan.
But an average of 16% difference in scores between
leaders and runners up across all sectors highlights that there is still much
work to be done, and many companies still trail behind. Among all, two sectors, Industrials,
Construction & Autos and Utilities had significant variances and came
in for particular criticism as active corporate social responsibility in
procurement does not appear to be the norm.
As an annual routine, FFD asks world’s
largest companies each year to disclose their impact on forests based on
their use of five commodities: soy, palm oil, timber and pulp, cattle
products, and bio-fuels. Companies are categorised into twelve sectors
and leaders are identified. The 2012 FFD sector leaders share a common
commitment to innovation and ensuring security of supply for their
future. Leadership consists of moving beyond the immediate supply chain
to engagement upstream and being prepared to spend time and money on
finding solutions to problems wherever they are found in the world.
FFD welcomed significant improvements from
companies including Boots UK, Next, Kingspan Group PLC and Whitbread
Group PLC. Four new leaders were also recognised. They were, New
Britain Palm Oil Ltd., British Sky Broadcasting, Marfrig Group and Prime
Asia Leather Corporation.
‘Whilst we are heartened by the
significant increase in the number of disclosers in this fourth FFD
annual cycle and the contribution of new, global entities, it is not
just about disclosing. We are calling on companies to make a step change
in their behaviour to ensure that responsible policies are integrated
throughout their supply chains. This makes business sense and is what
the investment community expects,’ said James Hulse, Director of FFD.
Investment support of FFD grew again this
year and the project is currently backed by more than 180 endorsing
investors managing in excess of $12.8 trillion. ‘Reducing rampant
deforestation, the ultimate purpose of the Forest Footprint Disclosure
(FFD) Project, is not just about carbon. It is a global imperative in
the move towards more responsible and sustainable use of natural
capital. This underpins wealth creation in the world economy and the
security of water, energy, food and health for millions of people,’ said
Andrew Mitchell, Chairman of FFD.