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ESG experts warn of further Amazon deforestation

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Frequently asked questions

Explore our FAQ for answers to common agribusiness queries. Can’t find your question? Contact our expert team for tailored assistance.

What scale of Amazon deforestation did ESG experts and monitoring agencies record in the first half of 2022?

The Brazilian Space Agency recorded over 3,980 square kilometres of Amazon deforestation in the first six months of 2022 — an area approximately five times the size of New York City and the highest figure on record since at least 2016. Fire activity in June was also the highest in 15 years.

What are the primary drivers of Amazon deforestation that ESG experts identify?

Cattle ranching and crop farming are the dominant drivers. Over five decades, approximately 17% of the Amazon’s forest area has been cleared for agriculture. Since 1985, pastures and croplands have replaced 65 million hectares of forest and savanna. Unclear land tenure compounds the problem, enabling illegal land occupation and below-market farmland sales.

What are the projected consequences if Amazon deforestation continues at its current rate?

The Amazon could lose between 20% and 25% of its forest within a decade. Beyond the loss of a critical global carbon sink, this trajectory risks converting rainforest into degraded open savanna, threatening biodiversity, destabilising regional weather patterns as far as Mexico and the United States, and accelerating the broader climate crisis.

What policy and enforcement measures have proven effective in reducing Amazon deforestation?

Between 2004 and 2012, a combination of strengthened environmental enforcement, restrictions on exports from deforested land, and expanded protected areas reduced Brazil’s deforestation rate by 80%. ESG experts point to this period as evidence that robust governance, including implementation of the Forest Code and payments for environmental services, can deliver measurable results.

How can investment in agricultural productivity help reduce Amazon deforestation without compromising food security?

Directing investment towards sustainable intensification on already-cleared land could double agricultural output without further forest loss. Precision agriculture technologies and technical assistance for smallholders — who occupy a significant share of the Amazon — can raise productivity and household incomes, reducing the economic pressure to clear additional forest for crops or livestock.

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