Learning Event summary
Join us for the first in our series of virtual business brown bags on “Understanding deforestation risks in supply chains” to explore how companies can better identify and address deforestation risks across the world’s major forest frontiers!
This session brings together experts in monitoring deforestation risks with companies actively navigating the challenge in the region. Whether you’re starting your sustainability journey or strengthening existing practices, these sessions will help you make sense of the shifting landscape – and take action.
Register now at the link above or read on for a session primer.
Regional context
Latin America is home to some of the world’s largest forested areas, including the Amazon rainforest, the Atlantic Forest, the Gran Chaco, and the Cerrado. Yet these forests face significant pressure from deforestation. For example, the Amazon, the region’s largest forest, lost around 2 million hectares of primary forest in 2022 alone. This pace of loss means that between 2021 and 2025, the Amazon may have lost up to 24 million hectares of forest in total – an area almost as large as the entire United Kingdom. The Gran Chaco, South America’s second largest forest, is also experiencing one of the highest deforestation rates worldwide, with around a fifth of the forest already razed.
What’s driving deforestation
Deforestation across the region is driven primarily by agricultural expansion, though the specific crops and practices vary by ecosystem. Since 1985, 95% of the Amazon Biom’s forested area was converted into agricultural use -mostly pasture (77%), crops (12%), or a mix of both (6%). In the early 2000s, soy expansion was the main driver, but since the late 2000s, cattle grazing for meat production has become the primary cause. Timber and mineral exploitation also contribute to deforestation, though typically on a smaller scale since they depend on local resource availability. Fires, infrastructure development such as roads, and illegal land clearing further amplify forest loss, with between 50% and 90% of the region’s timber being illegally harvested.
Supply chain initiatives
New financing mechanisms and supply chain initiatives are emerging to address these challenges:
- The Tropical Forests Forever Facility (TFFF), launching at COP30 in Belém, will compensate countries for preserving tropical forests, including those with Amazon basin forests. Investor nations will provide an initial USD 25 billion, designed to attract an additional USD 100 billion from private investors by reducing their risk exposure.
- Zero-Deforestation Commitments (ZDCs) are corporate supply chain policies designed to ensure that commodities are produced without deforestation or conversion of natural ecosystems. An example in the Amazon cattle sector includes the Public Livestock Commitment (G4 agreement) and the Term of Adjustment of Conduct (TAC): under these agreements, slaughterhouses cannot purchase cattle from farms linked to deforestation after 2009. ZDCs’ coverage in Brazil cattle sector has grown from 30% in 2015 to 70% in 2023.
- Amazon Soy Moratorium, a coalition of investors and corporates, prohibits the purchase of soy produced on land deforested after the cut-off date in the Amazon region. Since implementation, soy-related deforestation has decreased while Amazonian soy production has increased by 400%. In early 2025, Brazil’s antitrust regulator briefly halted the moratorium following complaints from farmers’ groups. A court restored it within days, though an antitrust investigation remains ongoing.
- Sustainable forestry certification schemes such as the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC) set standards for responsible forest management and verified supply chains. For companies in the timber, pulp, and packaging sectors, they can enable compliance with EUDR requirements and strengthen traceability systems.
- Produce, Conserve, Include (PCI) in Mato Grosso, Brazil, is a jurisdictional sourcing approach that aligns governments, producers, and buyers to balance agricultural production with forest conservation and social inclusion.
Browse the evidence on initiative’s impact | Browse more standards in the region
Why this matters for your business
For companies sourcing forest-risk commodities, understanding these dynamics is increasingly critical. These commodities underpin many global value chains, from food and packaging to construction and paper products. Yet links to deforestation are often hidden deep within supply chains, through ingredients, raw materials, or upstream suppliers.
With the EU Deforestation Regulation (EUDR) coming into force in 2025, there is a renewed imperative for supply chain professionals to understand the issues and the practical tools and strategies available to them. Soon professionals will not only need to identify where products originate, but also understand local deforestation risks, confidently monitor suppliers, and contribute to implementing robust due diligence systems.
About this mini-series
Evidensia is hosting a series of 1-hour virtual business sessions to help supply chain professionals navigate deforestation risks across the world’s major forest frontiers. These focused sessions will break down the big picture, explain the major sustainability supply chain initiatives in each region, and share practical insights on strategies that have proven effective.
Three regions, three sessions:
- Latin America at a crossroads – 25th November, 14:00-15:00 UK time
- The African perspective – 26th November, 14:00-15:00 UK time
- Palm oil and the path forward in Southeast Asia – 27th November, 09:00-10:00 UK time
Please note: You need to register for each session individually. Attend the ones that matter most to your supply chain or join all three for a complete picture of global deforestation risks.