2024 rankings highlight consumer goods giants’ role in forest destruction

The environmental NGO Rainforest Action Network (RAN) has released its “Keep Forests Standing: Forest & Human Rights Policy Rankings 2024,” revealing how major consumer goods companies contribute to deforestation and human rights violations through their supply chains. These chains involve sourcing high-risk commodities like palm oil, soy, and paper packaging.

The rankings assess the forest and human rights policies of 10 major companies. Despite increased scrutiny, none showed significant progress compared to the previous year. Unilever was the only company to receive a passing “C” grade, while Procter & Gamble ranked last. Japanese companies Kao and Nissin Foods Holdings received “D” and “F” grades, respectively.

The assessment used 12 criteria to evaluate forest and human rights practices, with a total score of 24 points. Companies were graded from A to F based on their scores. The study also examined trends in forest-risk commodities, including palm oil, paper pulp, soy, beef, cocoa, and wood products.

The report highlighted shortcomings in several areas, including the implementation of NDPE (No Deforestation, No Peat, No Exploitation) policies, respect for Indigenous rights, protection of human rights defenders, supply chain transparency, and disclosure of deforestation impacts. Comprehensive policies and actions remain insufficient across most companies.

Unilever stood out by maintaining its “C” grade and demonstrating leadership with a grievance resolution report. Mid-tier companies like Colgate-Palmolive showed some progress but failed to address all critical areas. Kao and Mars saw minimal improvement, while PepsiCo and Nestlé regressed in their commitments. Ferrero, Mondelēz, Nissin Foods, and Procter & Gamble remained at the bottom, showing little effort to address deforestation and human rights issues.

Kao scored a “D” for applying NDPE policies to forest-risk commodities but lacked mechanisms to handle grievances from large-scale suppliers. Nissin Foods received an “F,” as its NDPE policies were limited to palm oil and not enforced across its supply chain.

RAN’s findings underline the urgent need for consumer goods companies to take meaningful action amid worsening climate and biodiversity crises. The delayed implementation of the EU Deforestation Regulation and increased violence against environmental defenders further underscore the urgency.

Since its launch in April 2020, the “Keep Forests Standing” campaign has conducted annual evaluations, with this year marking its fifth report. The campaign calls for immediate corporate responsibility to protect tropical rainforests and uphold Indigenous rights, urging global companies to take concrete actions to halt the expansion of commodity-driven deforestation into the world’s last tropical forests. It demands transparency, accountability, and proactive measures to combat deforestation and exploitation. RAN remains committed to holding companies accountable for their roles in environmental degradation and human rights violations.