EU Deforestation Impact and Costs to Global Supply Chains

The EU’s deforestation regulations serve as a causal backdrop to supply chains that have formerly kept their “eyes wide shut” on such matters. Key findings in a recent Chain Reaction research report provided evidence of human-driven deforestation activities combing Brazil’s Cerrado biome, a lush tropical savannah rich in biodiversity. Behind Cerrado’s landscape decay are cattle ranchers and soy expansionists focused on growing their enterprise. But by default, soy traders, meatpackers, retailers, businesses and consumers directly or indirectly procuring those raw materials support the deforestation and bear varied levels of responsibility.

Institute for Supply Management

After months of discussions among government policymakers and in company boardrooms, the talk is now real: On June 29, a new law regarding deforestation went into effect, touching companies and supply chains in the European Union (EU).

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