The effect of supply chain position on zero-deforestation commitments: evidence from the cocoa industry

Abstract

ABSTRACT Global agrifood companies’ sustainability strategies have evolved to increasingly rely on self-set voluntary commitments to address the persistent social and environmental challenges embedded in commodity supply chains. While state actors continue to guide sustainability efforts within their jurisdictions, the onus is increasingly placed on corporations who pronounce their own measures to eliminate deforestation and other unethical practices associated with their business operations. In this contribution, we analyze the publicly available action plans from all corporate signatories to the Cocoa and Forests Initiative (CFI), a novel zero-deforestation commitment that focuses mainly on the world’s top cocoa producers: Côte d’Ivoire and Ghana. We construct a CFI index to systematically compare company pledges and uncover any relationships between the strength or quality of a company’s CFI action plan and key company characteristics. We find that, contrary to what the literature would suggest, the consumer-facing and high brand value firms are pronouncing less stringent zero-deforestation commitments as compared to their upstream partners. We also find key gaps in the CFI, including the lack of clarity surrounding definitions and timelines, neglect of indirect supply chains, and unclear geospatial precision.