CASE STUDY SERIES: BUSINESS RISKS FROM DEFORESTATION
Rising consumer and investor awareness about the environmental and social impacts of deforestation is placing increased scrutiny on companies that source commodities from high-risk deforestation areas. Companies that fail to ensure that their products are not sourced with illegal or questionable environmental practices subject themselves to potential regulatory action or loss of customers. Such negative outcomes can translate into negative financial consequences.
This case studies series looks at the business risks companies may encounter when they source commodities from areas with deforestation. It spotlights three companies (IOI Corporation, JBS, and United Cacao) and summarizes the business risks and negative financial consequences they faced.