This is according to Global Canopy’s latest Forest 500 report, which tracks the deforestation and ecosystem conversion work of hundreds of the world’s largest companies operating in forest-risk supply chains.
Companies in beef, cocoa, coffee, leather, palm oil, pulp and paper, rubber, soy and timber value chains are included in the analysis.
Across eight of these commodities, companies collectively improved their supply chain traceability mechanisms. The only commodity bucking the trend was beef.
In all commodities, more than one-quarter of companies reported forms of implementation action in 2025 which they had not reported in 2024.
Just under one-fifth of the companies publicly stated their need to prepare for the EU Deforestation Regulation (EUDR) as a reason for taking these actions.
EUDR will mean that products derived from beef, cocoa, coffee, palm oil, natural rubber, soy, or wood must be “deforestation-free” and legally produced to be placed on the EU market. The burden of complying or explaining sits with importing businesses. Deforestation after 31 December 2020 is taken into account.
Non-compliance carries a fine of at least 4% of a company’s turnover within EU markets.
The Regulation is due to enter force from the end of 2026 for large businesses, having been delayed by two years.
Global Canopy’s executive director, Niki Mardas, said: “Influential companies in the deforestation economy have prepared for the legislation and several are vocal in their support. The EU’s goals and targets are best served by decisive implementation without further delays, simplifications or scope reductions.”
Laggards remain
While many companies have bolstered their deforestation approaches, Global Canopy did find that many are still failing to make even basic interventions.
One-third of the companies assessed have no deforestation or ecosystem conversion commitments for any commodity. Among them are the UK commodity trader Engelhart, Italian coffee company FinLav, US-based food manufacturer Land O’Lakes and German multinational shoe retailer Deichmann.
And, for most companies with commitments, at least one commodity is excluded from the scope. Commitments are most likely to exclude leather, beef, pulp and paper.
Global Canopy only classes 4% of the companies it assessed as ‘leaders’ with strong deforestation commitments and regular reporting on implementation and progress.
Among them are US consumer goods company Procter & Gamble (P&G), Finnish producer of timber and paper UPM Timber and Japanese paper manufacturer Nippon Paper Group.
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