Due Diligence
Common Pitfalls & Confusion Clearing —
Navigate corporate forest language, identify misleading claims, and avoid common misconceptions that can lead to investment risk blind spots.
Corporate Reporting Pitfalls
Even well-intentioned sustainability reports can hide more than they reveal. Here are three of the most common ways companies obscure their true forest risk exposure — and what to watch for:
Confusing Terminology
Companies often use broad or misleading language that sounds positive but lacks substance.
Warning Signs:
Vague claims of “sustainable sourcing” without certification proof
Confusion between “zero deforestation” and “zero net deforestation”
“Forest positive” promises with no measurable criteria
Combining degradation and deforestation data in a single number
Misleading Metrics
Numbers that look impressive on paper can mask underlying risks.
Warning Signs:
Highlighting only certified sourcing percentages while ignoring the strength of the certification
Using outdated baseline years to exaggerate progress
Aggregating results across high- and low-risk regions
Measuring only direct suppliers, while ignoring upstream exposure
Verification Gaps
Claims often go untested without independent checks, which can obscure true risk exposure.
Warning Signs:
Self-reported data without providing all relevant information.
Relying on supplier attestations instead of on-the-ground verification
Missing chain-of-custody records
Limited integration of field audits or satellite monitoring
Terminology Clarity Guide
Cut through confusing corporate disclosures and identify misleading claims.
Outcome Claim
Deforestation Free (DF)
Deforestation Conversion Free (DCF)
What Satisfies The Claim
FSC Forest Management (FM) certificate with full Chain of Custody (CoC) coverage to product level
Geolocation to FMU/harvest block (100% coverage)
Ongoing satellite monitoring tied to supplier polygons; investigation & grievance processes.
Third-party verified geolocation to FMU/harvest block with monitoring.
Independent product-level DF verification (Rainforest Alliance, preferred auditors).
Policy with explicit cut-off date.
FSC FM + CoC, plus explicit ecosystem conversion safeguards beyond forests (wetlands, grasslands, savannas)
Verified DF + conversion safeguards through independent DCF verification programs (e.g., ProForest/AFi-aligned systems, RA DCF assurance)
FMU geolocation + ongoing satellite monitoring tied to suppliers with corrective action and grievance mechanisms
Policy with explicit cut-off date and DCF scope (not just “forest”).
Common Pitfalls
The following does NOT satisfy as DF/DCF free:
FSC Controlled Wood (CW) → reduces risk, but not DF/DCF.
FSC Mix (where the non-certified portion is CW or unknown)
Allows mixing; not all product units are from certified FMU; fails DF & DCF.
PEFC Forest Management (generic) → PEFC endorses many national schemes with uneven rules. As a class: not DCF; DF only case-by-case (can’t assume).
CSA (Canada, PEFC-endorsed) → Good on management systems, weaker on conversion beyond forests; fails DCF; DF only if extra, source-level proof exists (don’t assume).
American Tree Farm System (ATFS, PEFC-endorsed) —> no binding DCF safeguard; fails DF & DCF.
SFI Fiber Sourcing → good baseline, but not product-level DF/DCF proof.
Chain of Custody (CoC) alone → necessary but insufficient
Risk tools/databases (FSC NRA, GFW, USFS FIA, OneTrust, SOVOS, etc.) → useful for screening, but not DCF proof.
Industry association membership (AF&PA, NAFO, CEPI, etc.) → context only, not verification.
Supplier traceability that stops at trader/mill (no production unit).
More Tools & Resources
Access our comprehensive tools for cutting through corporate forest language and identifying genuine risk disclosure.
Company Case Studies
Case comparison of how corporate language either obscures or reflects real forest action.
Clarity Briefings
Clear, factual analysis in understanding the state of global forests and certification bodies reality.
Engagement Questions
Comprehensive question sets for engaging with companies on forest risk disclosure.