By Simon Jessop

LONDON, (Reuters) – A third of 350 companies that are most vulnerable to commodities like palm oil, beef, and timber do not have policies in place to prevent their products from fuelling deforestation. This was revealed by Global Canopy, a non-governmental organization.

To limit global warming, protecting the forest resources of the planet is a central goal. At the COP26 Climate talks, November, 141 nations pledged to halt or reverse the loss of forests by 2030.

Gleichzeitig, over 30 financial institutions holding assets of nearly $9 trillion said that they will aim to eradicate commodity-driven deforestation in their portfolios by 2025.

Britain already makes it a law for companies that they ensure there is no illegal deforestation of their supply chains. The European Union and United States will be considering legislation similar.

Direct threats to businesses also come from deforestation. Deforestation can worsen climate changes, lead biodiversity loss, affect water supply, which could impact the growth conditions of commodity crops as well as prices.

Global Canopy’s annual “Forest 500” report revealed that only 28% of the companies producing, using, trading or selling commodities have comprehensive policies. This includes all commodity-related businesses.

It said that only 38% of 150 top financial institutions worldwide had developed a policy to address deforestation.

Global Canopy’s executive director Niki Mardas stated, “Last Year saw extraordinary political action. More than 140 countries recognized the urgency to save forests. Yet, most financial institutions and companies with the best ability to stop deforestation are doing very little to no.”

Businesses who don’t consider deforestation serious will face significant risks as the major consumer countries start to transpose these promises into legislation.

According to the report, TJX Companies, NYSE:, owner of T.J. Maxx, and Capri Holdings, NYSE:, which is home to the Versace and Jimmy Choo fashion brands were among those flagged for having no policy.

TJX indicated that, while the company does not yet have a deforestation strategy in place, they are currently working on it as part their environmental sustainability plan.

Capri Holdings has not yet responded to my request for comment.