- The UK government plans to require companies trading in key commodities to ensure that production does not involve illegal deforestation. Businesses with turnover above £50 million using more than 500 tonnes per year of these forest‑risk commodities will have to conduct due diligence and report on their supply chains.
- A University of York study commissioned by the government found that 99.7 % of deforestation linked to UK consumption occurs abroad. In 2023 British consumption was associated with about 29 000 hectares of deforestation and 9.4 million tonnes of carbon emissions.
- Retail groups and NGOs support the rules but call for pragmatic implementation and alignment with EU deforestation regulations.
Britain is poised to make history by forcing companies to verify that everyday products – from chocolate bars to car tyres – are not driving illegal forest destruction overseas.
Under legislation to be introduced later this year, large businesses trading soy, palm oil, coffee, cocoa, rubber and leather must carry out due diligence to ensure their suppliers have produced these commodities on legally occupied land. The rules aim to sever links between UK consumption and tropical deforestation and follow similar measures adopted by the European Union.
The government’s plan, announced during London Climate Action Week, will implement the Forest Risk Commodity (FRC) regime contained in the Environment Act 2021. The Department for Environment, Food & Rural Affairs said businesses with turnover above £50 million and using more than 500 tonnes of a regulated commodity per year will be prohibited from using products grown on illegally deforested land.
To comply, firms must trace their supply chains, identify the origin of raw materials and publish annual reports on due‑diligence measures.
Nature minister Mary Creagh framed the policy as a critical tool for meeting climate and nature‑recovery targets. “Britain’s consumption drove an estimated 29,000 hectares of deforestation and 9.4 million tonnes of carbon emissions in 2023,” she said, adding that 90 % of global deforestation is linked to agricultural expansion.
Eliminating illegal deforestation will reduce emissions, protect biodiversity and level the playing field for responsible producers. The government plans to consult on implementation details this summer, with phased enforcement beginning in Northern Ireland by December 2026.
The move aligns the UK with the EU’s Deforestation‑free Products Regulation (EUDR), which will prohibit products linked to deforestation from entering the bloc’s market from 2025.
Retail groups welcome the UK’s commitment but stress that the government must provide clear guidance on traceability and support smallholder farmers. WWF UK’s Tanya Steele said robust enforcement, not merely voluntary pledges, would determine the policy’s success.
Mandatory checks on supply chains
Businesses face significant challenges in implementing the new rules. Tracing deforestation through complex supply chains often requires satellite monitoring, on‑the‑ground audits and collaboration with suppliers.
The British Retail Consortium has called for due‑diligence guidance that is pragmatic and proportionate to avoid driving small producers out of UK markets. Some sectors are already adapting: several chocolate manufacturers have pledged to source certified cocoa, while tyre companies are investing in sustainable rubber plantations.
Yet environmentalists caution that without strict penalties, deforestation could simply be shifted to unregulated products or regions.
For UK energy and industrial firms, the rules may indirectly affect procurement of biofuels and biomass feedstocks. Companies using palm oil for renewable diesel, for example, must verify that plantations are not on illegally cleared land.
The policy also signals that supply‑chain transparency is becoming a regulatory norm across sectors. As global investors increasingly screen portfolios for deforestation risk, UK businesses that fail to adapt could face reputational and financial repercussions.
The legislation’s ultimate success will depend on harmonisation with the EU regime, enforcement capabilities and the willingness of companies to clean up their supply chains. While the UK is only one market, its new due‑diligence law could catalyse wider adoption of zero‑deforestation standards worldwide.
