How do we identify the 500?
The selection of the Forest 500 is based on two criteria: (1) risk of being linked to tropical deforestation through involvement in or potential exposure to forest risk commodity supply (FRC) chains; and (2) influence within the political economy of tropical deforestation.
The 50 jurisdictions chosen are key in assisting the shift towards deforestation-free supply chains due to their exposure to FRC production, processing and/or consumption. 25 producer countries and 10 subnational jurisdictions are selected, in which the largest areas of tropical forest are located but that are losing this forest cover at a rapid rate and high volume, due in large part to expanding FRC production. The 15 countries importing the largest value of FRCs from these producer countries are selected using trade data to understand each country’s involvement in the different supply chains.
The 250 companies represent the players with the greatest influence within global FRC supply chains. As these companies hold dominant positions in commodity production, processing, manufacture and/or retail, they are at greater potential risk of exposure to unsustainably produced FRCs. Companies are selected based on the scale of their commodity production, the volume of commodities they process or trade, and their market share within global manufacturing and retail sectors.
The 150 financial institutions are the key investors, lenders and other financial institutions exposed to forest risk commodity supply chains. They have been identified according to data on their shareholdings, bondholdings, and lendings and underwritings, of which they collectively hold over US$2.8 trillion in publicly listed Forest 500 companies.
Finally, 50 other powerbrokers of tropical deforestation have been identified. These include multilateral financial and policy institutions, sustainability initiatives, commodity roundtables and certification schemes. They have been identified using a range of data, such as the reach of certification schemes.