Mining for commodities such as gold and coal is a driver of permanent tree cover loss and has increased in tropical rainforests in recent years. At a global scale, direct deforestation from extractive industries is minor, estimated to account for between 1.3 and 3.3% of deforestation in tropical forests. However, extractive industries’ indirect impacts on forests and other natural ecosystems are estimated to be much larger than their direct impacts. Furthermore, mining-related direct deforestation is heavily concentrated in certain highly biodiverse biomes and countries, where the impact on ecosystem services and local communities is significant.
Corporate transparency on forest risks remains very limited in the mining and extractives sectors. Companies reporting through CDP in 2022 saw small signs of improvement in adopting commitments and policies to reduce or avoid biodiversity loss. However, this improvement is largely due to the composition of reporting companies (10 companies that reported in 2021 failed to do so in 2022). In addition, the quality and effectiveness of these policies remains unclear due to a lack of specificity in their design.
Mining for commodities such as gold and coal is a driver of permanent tree cover loss and has increased in tropical rainforests in recent years. At a global scale, direct deforestation from extractive industries is minor, estimated to account for between 1.3 and 3.3% of deforestation in tropical forests. However, extractive industries’ indirect impacts on forests and other natural ecosystems are estimated to be much larger than their direct impacts. Furthermore, mining-related direct deforestation is heavily concentrated in certain highly biodiverse biomes and countries, where the impact on ecosystem services and local communities is significant.
Corporate transparency on forest risks remains very limited in the mining and extractives sectors. Companies reporting through CDP in 2022 saw small signs of improvement in adopting commitments and policies to reduce or avoid biodiversity loss. However, this improvement is largely due to the composition of reporting companies (10 companies that reported in 2021 failed to do so in 2022). In addition, the quality and effectiveness of these policies remains unclear due to a lack of specificity in their design.