FMCGs’ Zero-Deforestation Challenges & Growing Exposure to Reputation Risk
Channel: Chain Reaction Research
Date: 2020-11-19

Fast-Moving Consumer Goods Companies (FMCGs) had aimed to eliminate deforestation in their supply chains by 2020, but most are lagging in implementing and executing their zero-deforestation policies. This exposes them to growing reputation risk as consumers, NGOs, and governments pressure them to increase their ambitions. Some FMCGs have recently reaffirmed their commitments to curbing deforestation, but their announcements also underscore the gaps between deforestation policies and their execution. In light of this gap, CRR calculates that investors could be confronted by reputation risk valued at USD 16 billion to USD 82 billion.

CRR analysts held a webinar on FMCGs and their efforts to eliminate deforestation in their supply chains, and what the risks are if they don’t on November 19th.