Governments and local stakeholders have the power to dramatically reduce deforestation through policy and action. Companies committed to reducing deforestation can incentivize the creation and enforcement of those policies and actions through their sourcing. Bringing together corporate commitments to reducing deforestation in supply chains with national and subnational-scale (“jurisdictional”) programs that are reducing deforestation and greenhouse gas emissions leverages the combined power and resources of the public and private sectors.
Through this approach, companies can make the commitment to source preferentially from jurisdictions effectively implementing programs that reduce deforestation and associated emissions. Those jurisdictions will benefit from the additional trade and revenue, which complements potential climate finance associated with reducing forest-related emissions.
The goal is to expand the incentives for international supply chains that are supportive of forest conservation. This approach provides an incentive for countries through eligibility for preferential sourcing, as they produce more while deforesting less. The result benefits both countries and companies: countries will protect their valuable national forests and reduce emissions, and companies will ensure integrity in their supply chains.
How it works
- National and subnational-scale programs are assessed by independent experts for consistency with a series of criteria established by sourcing companies for preferential sourcing. Information is updated periodically to ensure continued consistency.
- Global standards for jurisdictional forest and climate programs will also be assessed; programs that are accepted by standards which meet the criteria will not need to be assessed again.
- Up to date information on jurisdictions assessed against the criteria for preferential sourcing will be available on a website for use by any company wishing to apply this approach.
- Companies may use information on eligible jurisdictions to prioritize their sourcing of commodities, as most relevant to their supply chains.
Benefits for companies
- This approach helps put companies on the pathway to meeting their zero deforestation supply chain commitments.
- Companies can leverage significant investments by partners in existing programs to reduce deforestation: ownership of responsible governments, stakeholder engagement, and financial and technical support by partners for program design and implementation.
- Results in reducing deforestation and associated greenhouse gas emissions are demonstrated through monitoring systems and third-party verification.
- Reporting on social and environmental safeguards provides visibility on how a program is implemented, and reduces risk.
- A national or subnational-scale focus means companies have assurance that progress is being made across the whole jurisdiction.
- The approach covers all commodities produced in a jurisdiction; commodity-specific approaches are not needed.
For jurisdictional programs
- This approach enhances recognition for effective jurisdictional REDD+ and sustainable landscapes efforts by helping to attract new partnerships and increase market share.
- There are no additional requirements beyond the implementation of an effective, well-monitored jurisdictional REDD+ or sustainable landscapes program with strong stakeholder participation and safeguards.
- Incentives in the form of increased sourcing may complement climate finance and other sources of revenue.
- This approach may help raise awareness of commodities produced in jurisdictions with a commitment to sustainable production, and attract investment that is consistent with climate change and sustainable development goals.
More information on this process can be found here.