BUILD AWARENESS & ACTION IN EMERGING MARKETS
INTENDED OUTCOMES
- Increased awareness of deforestation risks in commodity supply chains among target stakeholders in key emerging markets - China (all commodities), India (palm) & domestic markets in Indonesia (palm) & Brazil (cattle, soy).
- Emerging market economies taking actions to decouple production and consumption from driving commodity-driven deforestation.
PRIVATE SECTOR ROLE
- Deepen awareness and action with key Chinese businesses (State Owned Enterprises & private sector).
- Multinational business voices become more active in championing sustainable supply chains in China (and other emerging markets).
- Private sector entities influence the diplomatic outreach by their home country governments to elevate these issues with the Chinese government.
ROLE OF OTHER ACTORS
- Governments create and enforce deforestation-free commodity measures: import rules, purchasing, and incentives; support producing countries; and enact strong protection measures in trade deals.
- Civil society communicate food security and climate threat business case for action by Chinese buyers.
- The financial community examines ways in which it can incentivize actions to reduce the deforestation footprint of China.
TFA ROLE
- New two person TFA team in Beijing is focused on China specifically and is working to leverage strong World Economic Forum presence and relationships.
- Deepen business and government engagement in China and support and coordinate with broader community efforts.
- Develop thought leadership on sustainable supply chain business case and policy studies.
RATIONALE
- Emerging markets represent increasing size of global trade for forest risk commodities – China alone represents 62% of global soy imports, 32% of pulp & paper and 11% of palm (2015 data, AlphaBeta analysis).
- Absent a stronger sustainability agenda, leakage markets are growing and undermining progress in other markets and by the private sector to remove deforestation from supply chains.
CURRENT STATUS
- In China, there is a proliferating number of related programs ahead of CBD COP15. Business engagement is growing and needs more coordinated actions.
- In India, there are much lower levels of engagement. A small number of players are active, and IDH and FOLU are developing new programs.
- In other markets, there is a strong civil society presence in Brazil and Indonesia but less action.