“The private sector must be much more ambitious than it is now” – why action on the human rights abuses linked to deforestation must accelerate

Successfully tackling deforestation and ecosystem conversion requires effective action on the human rights abuses associated with it. But too often this is not happening.

Our webinar—“The human rights blindspot in deforestation action”—outlined why companies and financial institutions must act on the critical link between deforestation and human rights abuses, the regulatory risks of failing to do so and practical guidance on where to start.

The webinar was based on findings from the latest Forest 500 human rights briefing and annual report. It was moderated by Yula Rocha, Indigenous and Climate Projects Manager at People’s Palace Projects.

This summary brings together key statements from the webinar. A podcast summarising the webinar and a full recording are also available.

Emma Thomson, Global Canopy’s Forest 500 and Tracking Lead, explained: “The latest assessments show that just 1% of the companies that are most exposed to tropical deforestation risk have a policy that covers all of the human rights aspects that we assess in the Forest 500. Even [among] the companies and financial institutions with deforestation commitments, their policies rarely include human rights. This permits abuses to continue and slows progress towards deforestation-free and net-zero targets.”

Adriana Ramos, Public Policies Specialist at Instituto Socioambiental, commented on the situation in Brazil: “Low political support for the demands of Indigenous and traditional Peoples and communities has been reflected in violence in Brazil’s countryside, especially in regions where the level of land-right recognition is lower. A survey from the Indigenous Missionary Council points out that Indigenous Peoples were victims of more than 1,200 property violations and 200 murders in 2023.”

Adriana added: “So many initiatives have become like a comfort zone for the private sector. […] We’ve seen so many coalitions, roadmaps, frameworks, platforms and commitments created to support the private sector in improving their social and environmental standards. However, even those are not quite being fulfilled and, when it comes to human rights, we are still very far away from the expected results.”

The importance of Free, Prior and Informed Consent

The webinar focused on Free, Prior and Informed Consent (FPIC), which is one of the seven human rights issues that Forest 500 assesses. FPIC centres on obtaining consent from Indigenous Peoples for any activities undertaken on their land. This process should happen before any work proceeds and on an ongoing basis.

“Consent should be sought for any activities that could potentially impact on the rights of Indigenous Peoples,” explained Cathal Doyle, Legal and Human Rights Programme Coordinator at Forest Peoples Programme.

Cathal added: “FPIC sits at the nexus between respect for human rights, Indigenous Peoples’ culture and physical survival, and the protection of their forests, which are essential for climate change mitigation. Guaranteeing FPIC is also essential to avoiding legal and reputational risks for companies and investors to ensure that they contribute to the greater good of society.”

Forest 500 found that 31% of financial institutions have published a policy encouraging or requiring their clients or holdings to test for FPIC of Indigenous Peoples and of local communities, compared to just 13% in 2014.

“Setting and implementing commitments on FPIC alone is not enough,” Emma Thomson noted. “Companies must also commit to respecting the customary rights of Indigenous Peoples and local communities to land, resources and territory, and also have a zero-tolerance approach to violence and threats against forest, land and human rights defenders.”

The EUDR should move the needle

Alongside operational and reputational risks, there are very real regulatory risks of failing to act on human rights. From the end of 2024, under the EU Deforestation Regulation (EUDR), companies must assess the risk that imports or exports of key forest risk commodities across the EU market are not produced in accordance with relevant legislation in their countries of origin.

“Assessing legality risks related to Indigenous Peoples, tenure rights and human rights and land rights is a prerequisite to achieving deforestation-free supply chains,” Giulia Bondi, EU Senior Campaigner at Global Witness, explained.

Although financial institutions are currently exempt from the EUDR, pressure is mounting. “What we are calling for is proper due diligence obligations for the financial sector, to ensure that their investments are not directly or indirectly linked with any deforestation or human rights abuses,” Giulia noted.

Adriana Ramos added: “If we do not have a real commitment at the political level, the figures on effectiveness will remain as low as they are now, and we won’t be able to find the solutions we need in time to avoid the tipping point in the Amazon. So we have to rush. The private sector must be much more ambitious than it is now.”

What companies and financial institutions should do next

Companies and financial institutions are not alone in this process. Companies should refer to the Accountability Framework initiative’s Operational Guidance and the SIRGE coalition guide (on FPIC specifically). Financial institutions should read the Finance Sector Roadmap.

Emma Thomson concluded: “The more transparency we see around commitments and processes in policies and crucially reporting on progress towards the effective implementation of those commitments, the more collaboration there can be across supply chains, within supply chains, and we can address these issues much quicker.”

Watch the human rights briefing launch webinar and read the briefing (pp. 6-7) for details of actions companies, financial institutions and policymakers should take next.

Read the briefing