Agricultural commodity production remains the leading cause of deforestation, forest degradation, and ecosystem conversion. Given projected demand for key forest-risk commodities, the threats to forests and other ecosystems won’t be going away anytime soon. 

Overall progress to address forest impacts within the agribusiness sector has not been sufficient to eliminate deforestation, forest degradation, and ecosystem conversion at scale. But it doesn’t have to stay that way: Leading traders and brands are demonstrating that improving traceability systems and cleaning up supply chains is possible, often facilitated by collaborative initiatives and driven in part by governments and institutional investors. 

Deforestation, degradation, and conversion are associated with all sorts of risks to companies in the agribusiness sector. If not addressed, these physical, transitional, or systemic risks may interact and amplify each other. Failing to take action to address these risks can introduce severe legal and financial consequences for businesses. 

Transitioning to deforestation- and conversion-free (DCF) production helps companies avoid, reduce, and mitigate these risks, and even create new opportunities. A shift to protect and restore forests and other natural ecosystems and toward diversified production systems that maintain ecosystem services will deliver both resilience against future risks and long-term value to businesses.