In response to the urgent need for sustainable agri-food systems amidst climate change and biodiversity loss, the Climate Bonds Standard has broadened its Certification to include agri-food entities committed to sourcing commodities free from deforestation and natural ecosystem conversion.
The move comes as agri-food chains have been identified as the leading cause of deforestation, accounting for nearly 90% of recent global forest loss.
The newly introduced Criteria offer a comprehensive framework aimed at guiding entities across the agri-food value chain towards sustainable sourcing practices. Emphasizing clear timelines and traceability, the Criteria set strict guidelines aligned with the European Union Regulation on Deforestation-Free Products (EUDR). This regulation restricts the trading of seven commodities—cattle, cocoa, coffee, palm oil, soy, rubber, and wood—if linked to deforestation, providing a global roadmap for compliance.
While prioritizing climate mitigation and biodiversity protection, the Criteria also integrate principles of social equity, emphasizing the rights of indigenous peoples and human rights protection.
Eligible entities span the entire agri-food sector, from traders to retailers, with no limitations on specific commodities, ensuring broad applicability across the industry.
Key components of the Criteria include a cut-off date of December 31, 2020, mandating that no deforestation or ecosystem conversion occur within certified entities’ supply chains beyond this date. Additionally, a risk classification system is implemented to prioritize high-risk origins, leveraging data from sources such as the Global Forest Watch.
With the agri-food sector’s significant contribution to deforestation and climate emissions, the expansion of Climate Bonds Certification represents a crucial step towards building sustainable food supply chains, essential for a climate-resilient future and the preservation of global biodiversity.
