Awareness and engagement of listed companies in combating deforestation and forest degradation in Brazil

Abstract

AbstractForests provide invaluable ecosystem services, including critical services such as climate regulation. Increasing rates of deforestation in Brazil, home of some of the world's largest and most ecologically diverse tropical forests, poses several threats to businesses; companies face the challenge of intensified physical risks, stringent regulations, and pressure from investors and consumers demanding low‐carbon investment and product practices. This study investigated a sample of 232 listed Brazilian companies to understand their awareness of the forest agenda and commitment to forest protection. Although most companies are aware of forest‐related issues, risk management and impact monitoring are lacking. This analysis provides qualitative insights into listed Brazilian companies' perceptions of forest‐related issues, demonstrating the need to raise risk awareness and increase engagement. The study findings suggest that regulatory measures can leverage corporate disclosure of forest engagement, encouraging risk reduction and maximizing opportunities aligned with the climate agenda.