ENVIRONMENT

Hundred companies disclose their forest footprint

Saturday February 02, 2013

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 the Report.

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.

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