Private Processes and Public Values Tackling Global Deforestation and Ecosystem Conversion via Non-Financial Due Diligence

Abstract

This paper takes stock of the many private and public instruments enacted transnationally to tackle the pressing problem of deforestation, ecosystem conversion and associated human rights violations caused by international demand and trade in agricultural commodities. The paper argues that non-financial due diligence based on no-conversion criteria, and in line with the United Nations Guiding Principles on Business and Human Rights, holds considerable potential in ensuring deforestation-free value chains. The paper studies impacts and shortcomings of supply chain management systems tools, firm-level zerodeforestation pledges, voluntary sustainability standards, and current public measures relying on private authority for their implementation. The paper then sets forth the main features of a possible EU measure that disciplines via non-financial due diligence the placing on the market of commodities and products associated to deforestation, ecosystem conversion, degradation of forests and ecosystems, and associated human rights
violations. This regulatory approach would also have the effect of harmonising and streamlining various initiatives enacted by private authority.

JEL Classification: K20; K32; K33