Consumer Goods Giants Support EU's Deforestation Ban Amid Compliance Concerns

Major consumer goods companies like Nestle, Mars Wrigley, and Ferrero have endorsed the EU's new law to ban products linked to deforestation. Despite some industry calls for delay due to compliance system issues, these companies are urging the EU to proceed and assist firms in meeting the policy's requirements.

Consumer goods giants including Nestle, Mars Wrigley, and Ferrero have backed the European Union's upcoming ban on imported goods linked to deforestation, according to a document obtained by Reuters, despite calls from some companies to delay the law.

Under the deforestation law, effective Dec. 30, companies selling cocoa, coffee, palm oil, and other commodities in EU nations must ensure their supply chains do not contribute to forest destruction. The U.S. government and industry groups have pushed for delays, citing concerns over unfinished EU compliance systems.

However, prominent chocolate producers are urging Brussels to proceed. In a paper addressed to European Commission President Ursula von der Leyen, Nestle, Mars Wrigley, Ferrero, and other firms supported the law but called for more EU assistance to meet the December deadline.

The document emphasized the need to minimize deforestation risks in the cocoa and chocolate sectors. It urged the EU to establish a coordinating committee and provide guidelines on legal interpretations and due diligence to ease compliance.

Additional signatories included Tony's Chocolonely and several non-profits. The EU has so far resisted delaying the policy, stating it is essential to curb environmental destruction, which saw significant forest loss between 1990-2020 and substantial CO2 emissions from EU-linked deforestation in 2021-2022.

Opponents argue the law makes tracing products to numerous small forest plots unfeasible.

(With inputs from agencies.)