Deforestation due diligence

Deforestation is the large-scale clearing, removing, or thinning of forests, primarily caused by human activities such as agriculture, logging, and urban development. It often involves cutting down trees or burning forested areas to convert the land for other uses, such as farming, cattle ranching, or infrastructure projects.

This process has significant environmental impacts, including:

1. Loss of biodiversity: Forests are home to a vast number of species; deforestation disrupts habitats leading to a decline in biodiversity.
2. Climate change: Trees absorb carbon dioxide (CO₂), a greenhouse gas. Removing forests releases this CO₂, contributing to global warming.
3. Soil degradation: Trees play a crucial role in maintaining soil quality and preventing erosion. Without them, the land becomes more prone to erosion, landslides, and nutrient loss.
4. Water cycle disruption: Forests help regulate the water cycle by absorbing and releasing water. Deforestation can disrupt rainfall patterns, leading to drier climates and affecting local and global weather.

As part of the European Green Deal and the 2030 EU Biodiversity Strategy, the European Commission adopted on May 16, 2023, a new regulation to curb EU-driven deforestation and forest degradation. As of November 2024, this legislation has been delayed for twelve months to allow more time for better preparation of infrastructure and reporting methods. It is due to come into force in December 2025 for large companies, June 2026 for small-medium companies.
 
The regulation sets rules for companies and traders producing products for the EU (or for export from the EU) linked to the commodities of soy, beef, palm oil, wood, cocoa, coffee, and rubber and specific derived products including leather, chocolate, and furniture. Learn more about the EUDR.

Leather is a by-product of the meat and dairy industry and as such does not directly drive deforestation. However, many companies are seeking to encourage more sustainable practices right through their leather value chain, making this an important consideration for the industry.

Learn more about deforestation.

There are other global territories such as Australia where World Wildlife Fund have reported issues with deforestation, however Brazil has been an area of focus on this issue. In addition there are other regions mainly in South America such as the Cerredo biome and Paraguay Chaco where there is concern over levels of deforestation and links to farming. 

LWG currently has due diligence requirements for sites sourcing from both Brazil and Paraguay however this is constantly under review and the scope of this may be extended according to expert NGO advice.

The LWG audit does not include farm-level assessment but evaluates leather processing sites across various sustainability criteria, including environmental management, chemical use, water and energy efficiency, waste management, social compliance, and traceability.

Traceability within the audit focuses on tracking materials back to the slaughterhouse or equivalent stage, with added monitoring for hides sourced from deforestation-risk areas like Brazil and Paraguay.

Deforestation-free leather however is an important aim for LWG, our Standard Development Programme is consulting on incorporating it into a future evolution of the standard, and members received regular updates and webinars on the topic. Learn more about our work on deforestation due diligence and deforestation-free aims.

The LWG audit includes additional due diligence requirements for hides sourced from Brazil and Paraguay to ensure suppliers are not involved in deforestation or encroachment on indigenous lands and protected areas within the Amazon and Paraguayan Chaco biomes.

Certified sites must, at a minimum, provide a compliance declaration, but higher scores are awarded for additional evidence, such as IBAMA reports, meatpacker monitoring documentation, or third-party reports. These traceability requirements were developed with input from WWF and NWF, both of which have extensive experience in reducing deforestation in Brazil.

If an allegation is made it is important, in the first instance to work closely with the supply chain to understand the specific data that can be provided to address any allegations.

The Deforestation-Free Call to Action for Leather is a collaborative initiative between LWG, Textile Exchange and World Wildlife Fund that calls upon brands and retailers to commit to sourcing all their bovine leather from deforestation-free supply chains by 2030 or earlier.

The guidelines were developed in consultation with WWF, the National Wildlife Federation (NWF), and the Accountability Framework initiative (AFi). The initiative sets clear expectations for brands, providing them with tools and guidance to support them on the journey.  Learn more.