Deforestation: The $53bn threat to agri-businesses

Deforestation and extreme weather are two of the risks that could lead to losses for firms, a survey of 500 firms found.

Global businesses sourcing commodities such as cattle, soybeans or rubber stand to lose some $53 billion due to deforestation unless they take action. In a survey of more than 500 global businesses, climate-disclosure platform CDP identified risks such as extreme weather, changes in consumer preferences, as well as market and reputational impacts from commodity-related forest loss. It would cost $6.6 billion in the coming years to address those risks, the London-based nonprofit said in a report Monday. “The destruction of the world’s vital forests poses huge risks to the climate, nature, the economy, and also increases the risk of future pandemics,” Sareh Forouzesh, CDP’s associate director of forests, said in a statement. “There is a solid business case for companies sourcing commodities sustainably and taking steps to protect forests.”