Private Sector Engagement Dashboard
In the context of the Brazilian Forest Code, collecting data on compliance, both from the company and its suppliers is a sign of commitment to sustainability and respect for the environment. The company demonstrates responsibility for the use of natural resources and the preservation of forest areas. This includes respecting permanent preservation areas' legal reserves and adopting practices that minimise negative environmental impacts.
Forest-related risk management is a crucial aspect for companies with activities or operations that may harm forest ecosystems. These impacts can be varied, including deforestation, biodiversity degradation, and greenhouse gas emissions. A responsible approach to managing these risks is essential from both an environmental and a reputational perspective.
In compliance with the Forest Code or other environmental regulatory instruments, these refer to measures that go beyond what is strictly required by law. They are actions taken by companies or entities that seek to exceed the minimum legal requirements in terms of conservation and protection of the environment, especially to permanent preservation areas (APPs) and legal reserves (RLs) provided for by the Forest Code.
Additionality is a key concept in environmental compensation programmes, financial incentives or forest preservation and restoration policies. Additionality actions demonstrate a voluntary commitment to sustainability and can result in significant environmental benefits, such as ecosystem regeneration, biodiversity conservation and climate change mitigation.
Examples of additionality to the compliance of the Brazilian Forest Code include restoration of degraded areas, creation of reserves beyond what is required, participation in environmental compensation programmes, etc.
Origin is closely linked to traceability and responsibility in the supply chain. Companies committed to complying with the Forest Code must ensure that the raw materials they use do not contribute to illegal deforestation, environmental degradation or other activities harmful to forest resources.
A corporate policy that includes forest-related issues usually involves setting targets, deadlines and concrete actions to ensure environmental sustainability and the preservation of forest ecosystems. This approach demonstrates a tangible commitment to environmental responsibility and contribution to the conservation of natural resources.
Monitoring, verification and information companies provide to trace and monitor the origin of their goods are essential components of environmental responsibility and ensuring that operations are aligned with sustainable practices, especially when complying with regulations such as the Forest Code. These activities aim to provide that the raw materials used in producing goods do not come from illegal or environmentally harmful sources, contributing to the conservation of ecosystems, promoting transparency and strengthening stakeholder trust.
Compliance with the Forest Code can be challenging for companies with operations or products that affect or depend on forest areas. Some of the main challenges include the complexity of the regulation, supplier compliance, economic pressures, etc.
Despite these challenges, companies that address these issues responsibly can not only comply with the Forest Code, but also strengthen their reputation, mitigate risks, contribute to environmental conservation and lay foundations for more sustainable development.