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Commodities and Supply Chains

Identifying and investigating high-risk sources of timber and agricultural commodities in specific sectors leads us to their final destination, where we put pressure on the actors driving damaging trade.

Global economy, local impact

The massive market for wood products and agricultural commodities impacts forest areas through complex, globalized trade systems. Trees from the Amazon, the Congo Basin, and the Russian Far East transform into flooring, furniture, and plywood in markets half a world away, faster than ever before. Connecting end products, and their buyers, to the practices on the ground in forested countries provides an opening to incentivize good forest governance by shifting legal and market incentives at the demand side of supply chains.

Supply chains are the stages, including harvest, processing, and sale, through which raw materials like logs and oil palm fruit are modified into final products, such as cardboard boxes and snack foods. Wood products supply chains begin deep in the world’s forests, 15.5% of which are owned by or legally designated for indigenous peoples and local communities, only a fraction of the area claimed under customary rights.

At the end of the supply chain, the wood products sector accounts for US $255 billion in exports annually (FAO), and palm oil and its kernels account for almost US $35 billion in exports each year (UN COMTRADE). The increasing global demand for these products puts pressure on the forests of the world and the land they occupy, and challenges the ability of local communities, and even national governments, to manage resources according to sustainable practices and the rule of law.

Exposing bad actors who drive damaging, illegal trade

EIA’s investigative reports provide information about complex corporate structures and supply chains with the aim of empowering consumer markets and financial institutions to take responsibility for avoiding purchasing or financing trade in products which violate laws and local rights in their country of origin.

In forested countries, illegal logging robs governments of revenues that should be directed towards development of sustainable economic activity, or invested into social programs. Highly profitable illegal timber trade also facilitates a cycle of corruption and legal impunity, which is acknowledged as a major barrier to sustainable development and deprives local communities of their livelihoods. In reducing illegal logging and associated trade, EIA’s work contributes to poverty reduction. Preventing high-risk, black market wood products from undercutting fairly and legally produced timber not only supports timber producing communities, but also ensures that revenue from the timber trade can be appropriately accounted for and taxed by the State.

By fighting for transparency in the global timber and oil palm sectors, EIA exposes bad actors who facilitate illegal, damaging trade in wood products and agricultural commodities grown on deforested land. Then, EIA makes specific recommendations for policy and enforcement reforms, from the local to the international level, based on evidence of systematic failures to sustainably govern forest resources.

Climate Contribution

Globally, deforestation and land use change contributes to approximately 13% of global greenhouse gas emissions, with deforestation representing the large majority of emission within that category. Cracking down on the illegal timber trade and illegal conversion of forests for large-scale agribusiness helps to mitigate climate change by reducing CO2 emissions from land use change. The effort to address the trade in illegally produced and traded wood fiber and wood products is credited with avoiding a minimum of 1 billion tonnes of CO2 emissions from the forestry sector by 2010.

Impacts and Results

  • In Liquidating the Forests (2013), EIA completed and published the first ever public interest timber supply chain investigation through China, showing how retailers in the United States drove the last temperate old growth forests in Russia to destruction.
  • In Deforestation by Definition (2015), EIA first linked finance from the timber and palm oil industries in South East Asia to massive illegal deforestation in Latin America.

Objectives

  • Understand and track changes in the global marketplace for logs, sawn timber, and finished wood products in order to bring focus to specific governance failures and demand side pressure causing illegal timber trade flows
  • Establish protection for threatened high-value tree species being rapidly depleted by profit-seekers
  • Track the expansion of largescale agricultural commodity development that threatens forest governance and preservation in emerging frontier areas, particularly oil palm plantations
  • Support civil society and local communities in forest countries to defend themselves against land rights violations and other human rights abuses

Recent Blog Posts

Intelligence Brute: ACOG
10/18/2019
M. Lu est le secrétaire de l'Association des Chinois d'outre-mer au Gabon et une des figures de proue de l'Union forestière des industries asiatiques du Gabon (UFIAG). Il ne manque pas une occasion de défendre publiquement les sociétés forestières asiatiques et d’affirmer que ces entrepreneurs agissent avec les meilleures intentions du monde.
EIA Forest Campaign at CITES CoP18
08/18/2019

Recent Reports

EIA 2018 Impact Report
09/09/2019
In 2018 the Environmental Investigation Agency continued to confront the greatest environmental threats facing the world today. The EIA team pursued, documented and exposed the activities of syndicates that threaten endangered species, damage the climate and ozone layer, and drive the trade in timber stolen from the world’s most important remaining forests.
Destino China: resumen complementario al informe Momento de la Verdad
02/14/2018
El reciente informe de EIA, El Momento de la Verdad mostró que la ilegalidad y el fraude son generalizados en todo el sector maderero peruano, y que una gran parte de la madera talada ilegalmente se exporta a decenas de países. En “Destino China: resumen complementario al informe Momento de la Verdad”, EIA parte de los mismos datos y análisis para destacar el mayor mercado de destino para las exportaciones de madera ilegal de Perú: China.

Recent Press Releases

“Rosewood Revealed” EIA Offers Transparency to Ghanaian Rosewood Trade
11/05/2019
“ROSEWOOD REVEALED” EIA Offers Transparency to Ghanaian Rosewood Trade
Peru's Fight Against Illegal Timber Trade at Risk as Authorities Weaken Rules and Regulations
02/07/2018
Peruvian forest authorities are weakening the tools and inspections necessary to prevent illegal timber trade, in the face of overwhelming evidence that Peru’s exports to the United States, China, Mexico and 15 other countries contained high percentages of illegal or high-risk wood. Moment of Truth, a new report from the non-profit Environmental Investigation Agency, demonstrates the extent of this illegal trade and the backlash against attempts to fight it.

Recent Videos

Raw Intelligence: GOCA
10/18/2019
Mr. Lu is the Secretary of the Association of Overseas Chinese in Gabon and a leading figure in the Forest Union of the Asian Industry in Gabon (UFIAG). He doesn’t miss an opportunity to publicly defend Chinese logging companies in Gabon, and to assert that these entrepreneurs operate with the best of intentions.
Intelligence Brute: ACOG
10/18/2019
M. Lu est le secrétaire de l'Association des Chinois d'outre-mer au Gabon et une des figures de proue de l'Union forestière des industries asiatiques du Gabon (UFIAG). Il ne manque pas une occasion de défendre publiquement les sociétés forestières asiatiques et d’affirmer que ces entrepreneurs agissent avec les meilleures intentions du monde.