Multiple legislative proposals with a global reach have been introduced, seeking to ensure products linked to illegally deforested land worldwide cannot enter local markets. Significant commitments from the leaders of over 140 countries were also made at COP26, in line with the Glasgow Leaders’ Declaration on Forests and Land Use. For multinationals with complex supply chains, these changes will present a considerable adjustment.

The onus is on corporates to demonstrate that utilised commodities and manufactured products are not linked to illegal deforestation so clarity over supply chains is critical under a number of national and international laws. The wide range of commodities currently proposed demonstrates breath of the new proposals. As sustainability issues play an increasingly prominent role, any non-compliance with respect to anti-deforestation legislation is significant for both society and business, with legal, financial and reputational repercussions.

Freshfields’ global team advises across the full spectrum of forest-risk considerations, including risk and governance frameworks, supplier due diligence, investor engagement, ensuring regulatory compliance and litigation mitigation advice. Given the cross-jurisdictional of deforestation legislation, Freshfields draws upon a global network to understand the position on the ground, creating joined-up business strategies that ensure compliance.