Unilever, Danone and Nestlé come close to eliminating deforestation from key supply chains

Attempts by companies to eliminate deforestation from supply chains show huge divergence in success, with leaders already coming close to having eliminated the practice for several key commodities and some laggards demonstrating no effort in the same areas, a new report finds.

Unilever, Danone and Nestlé are among the companies to report having verified that 90 percent or more of their purchases of palm oil, soy, timber, pulp and paper come from sources that do not cause deforestation or the conversion of other natural ecosystems. Nestlé and Marks and Spencer, a U.K. retailer, also achieved 100 percent deforestation-free sourcing for cattle, according to Ceres, a nonprofit that works with investors, companies and policymakers.

“There are challenges to achieving deforestation and conversion-free supply chains, particularly with certain commodities,” said Meryl Richards, program director for food and forests at Ceres. “But we’re seeing here that it’s possible to overcome those challenges.”

At the other end of the scale of the 53 food brands, retailers and other companies assessed by Ceres were BJ’s Wholesale Club, a discount retailer, and Bloomin’ Brands, which owns Outback Steakhouse and other restaurant chains. The Ceres team could not find evidence of either taking action to trace and verify commodities, or implement policies to tackle deforestation. Neither company responded to a request for comment.

Low disclosure of deforestation policies has also been noted in the finance sector: A report issued earlier this year found that only 40 percent of 150 financial institutions surveyed had such a policy in place, down from 45 percent in 2023.

Explaining the divergence

In addition to exposing stark differences between company ambitions, the Ceres report also recommends steps that companies can take to reduce deforestation in their supply chains and hints at factors that explain the differing levels of ambition.

The authors did not break down how action on deforestation varies by type of business, for instance, but it’s notable that many retailers and restaurants scored poorly on tracing and verification of palm oil, the commodity that’s most widely tracked. The difference may be due to challenges in engaging suppliers; retailers will generally have a great number of supply-chain tiers between themselves and producers. 

Food brands achieved higher rates for tracking and verification of commodities, with some exceptions. Kraft Heinz, for example, reported tracing just 5 percent of the palm oil it purchases back to source, and to having verified the same fraction as deforestation and conversion-free. The company, which reported $26 billion in sales in 2024, made no disclosures about soy, cattle, cocoa, timber, pulp or paper. The company did not return a request for comment.

Exposure to European markets is another factor driving company action, added Calli VanderWilde, food and forests manager at Ceres. The EU’s Regulation on Deforestation-free Products, which is due to come into force next month, requires companies to prove that the commodities covered — cattle, cocoa, coffee, palm oil, rubber and soy — are deforestation-free before selling them. 

Positive outlook

Palm oil is most widely tracked because companies and investors started paying attention to the deforestation risks associated with the commodity around 15 years ago, noted Richards. Supply chains for some other commodities, including cattle, are often complex, she added. Indeed, companies often seen as sustainability leaders, including Nestlé and Danone, have been criticized by other nonprofits for doing too little to address livestock emissions. But at least when it comes to deforestation, Richards expects the availability of new tools and technology will allow companies to track and verify at much improved levels in the near future.

In addition to working with individual suppliers, Richards said that companies can ensure tracking and verification is as efficient as possible by joining jurisdictional or regional efforts to eliminate deforestation. Such projects help tackle the root causes of deforestation and reduce the risk that protecting one area simply leads to increased conversion nearby.