Reducing commodity-driven forest and biodiversity loss by exploring and filling data gaps for due diligence

The project aims to reduce commodity-driven forest and biodiversity loss and to guide sustainable investments by making untapped data and methods accessible to relevant stakeholders and due diligence processes. Almost half of global deforestation is linked to the production of commodities such as palm oil, soy, beef, rubber, coffee, cocoa and wood fibre. There is increasing pressure on finance and business sectors to invest and source responsibly but, due to complex global supply chains and data gaps, environmentally-sound decision making is non-trivial. While there are increasing data on the impacts of oil palm and soy, the impacts of other commodities like rubber are more challenging to map using satellite-based remote sensing. Rubber, a forest-like tree crop, is planted in a small and scattered fashion by six million smallholders and its complex global rubber supply chains are largely opaque. Consequently, although the production of rubber is known to lead to forest, net carbon and biodiversity loss, these impacts remain uncertain or unquantified and challenging to address. Greenwashing and leakage are widespread, and rubber benefits from both rapidly expanding voluntary carbon credit markets and 'development' concessions. Only a very small fraction of currently produced rubber is credibly certified. Even a coarser location-based deforestation risk approach is hampered by the lack of global spatial data on rubber and forest loss. Given the comparatively lower data availability and public awareness the financial, corporate and policy sectors have mainly focussed on commodities with easier entry points and leverage. However, the situation is now changing with the free availability of high-resolution satellite data and cloud computing, combined with greater demand for deforestation-free finance and commodities.

This project will use natural rubber as a pilot to explore how new data and networks can be leveraged to map, quantify and tackle commodity-driven deforestation and biodiversity loss in 'difficult' commodities. The aim is to facilitate better financial and corporate decision making and to support zero-deforestation and biodiversity loss commitments. We will develop a multi-stakeholder network consisting of financial institutions, companies, civil society and science communities to synthesise information gaps and to co-create frameworks and tools for due diligence provisions. We will also facilitate free and high-resolution monitoring of rubber-driven forest loss, via the use of maps and apps. These will build on our recently developed method for mapping rubber and forest loss at unprecedented spatial and temporal resolution, which we will expand to global coverage. The new high-resolution data will also be coupled with existing and developing biodiversity metrics to provide a much-needed assessment of where biodiversity risks are highest within production landscapes. Finally, we will scope a rubber supply chain model to contribute to greater transparency of the sector.

The project partners include Global Canopy who, through the Aligned accountability project represent 11 Financial Institutions; the Global Platform for Sustainable Natural Rubber, whose members represent over 50% of the global natural rubber volume; and Forest Stewardship Council who developed a chain of custody rubber certification. The academic partners, Stockholm Environment Institute York and Royal Botanic Garden Edinburgh, contribute extensive experience in remote sensing, biodiversity modelling, biodiversity impact metrics and commodity supply chain models. Combined, the partners have the data and leverage that could transform the natural rubber market, which is timely as currently low global rubber prices are expected to rise again. The network and knowledge gained through this pilot project will enable us to expand to other deforestation-risk commodities (phase 2) where there are comparable information needs and implementation challenges.