COP30 calls for action in leather supply chains

The UN climate conference COP30 is currently taking place in Belém, Brazil. The close proximity to the Amazon rainforest underscores the urgency for companies to respond to the risks of deforestation. Increased scrutiny of some of the fashion industry’s biggest players, as well as upcoming European regulations, have increased pressure on the sector. Despite growing awareness, significant action is still needed to achieve global climate goals.

The conference, which runs until November 21, has brought together global delegates. They discuss solutions to reduce greenhouse gas emissions and mitigate climate impacts. Brazilian President Luiz Inácio Lula da Silva set the tone of the event from the start. He stressed that this edition must focus on concrete implementation rather than vague promises to ensure a more results-oriented agenda.

Major global fashion players involved in environmental damage

A main driver of deforestation in Brazil is cattle farming. It supplies both the meat and leather industries. Although some authorities have reported a decline in forest loss in recent years, transparency remains limited. Forest-dependent communities and sustainable land use solutions need further support. This context has drawn attention to industries such as fashion. They are increasingly being asked to improve traceability, transparency and management of associated risks in their supply chains.

A report from Climate Rights International (CRI) suggests that “major global fashion and footwear brands are linked through their leather supply chains to Brazilian producers who are involved in serious environmental and human rights abuses.” The report therefore concludes that the Brazilian leather and beef industries cannot be reliably considered free of illegal deforestation or human rights violations due to a lack of traceability solutions.

Coming regulation increases the pressure

This problem is exacerbated by the European Union’s new regulation on deforestation-free products (EUDR). Its gradual rollout will begin on December 30, 2025, from which point large companies will be required to comply. Under the EUDR, companies must demonstrate that imported goods, including leather, were not produced on land that was deforested after December 2020. Companies selling in the region must be able to provide geographical coordinates for where animals are raised in their supply chains. Failure to comply could therefore restrict market access in the EU. A compliance deadline of June 30, 2026 has been set for smaller companies.

Despite an earlier commitment from leaders at COP26 to halt and reverse forest loss by 2030, industry leaders are lagging behind on transparency. Global Canopy reports that only 22 percent of major cattle and leather companies published deforestation commitments in 2025. Only five percent reported quantities as “deforestation and/or conversion free.”

An investigation by Repórter Brasil uncovered ten recent cases. In these cases, cattle ranches implicated in deforestation, labor rights violations, and/or invasion of indigenous lands were part of Brazilian meat processors’ supply chains. These meat processors then sold the cattle to slaughterhouses that worked with six company tanneries. Another report by Stand.earth Research Group commissioned by CRI found that 24 international brands were linked through their supply chains to tanneries operated by one or more of these companies in 2023/2024. This included sportswear giants such as Adidas, Nike and Asics as well as premium brands such as Hugo Boss, Calvin Klein, Kate Spade and Lacoste.

Solutions are emerging in the form of cattle tracking and material alternatives

Additional data from Global Canopy’s Floresta 2025 Index shows that the intensity of deforestation in the Brazilian cattle sector increased approximately between 2020 and 2023. Approximately 62 percent of cattle-related forest loss occurred in the Amazon. In response, Brazil is introducing a national cattle tracking system. This is particularly happening in Pará, where all 24 million cattle are to be geolocated by 2026. However, verifying the entire supply chain for hides for global export remains a challenge.

So it’s clear that the fashion industry’s response remains slow. Although many brands have announced sustainable leather initiatives, few can demonstrate full traceability from raw material to finished product. With regulation looming, companies without verifiable data risk regulatory penalties and restrictions in certain markets. The World Resources Institute estimates that companies heavily dependent on leather can expect unit costs to rise by up to 20 percent by 2027. This is due to the associated certification and restructuring of the supply chain.

However, COP30 also revealed new possibilities. Brazilian innovators present forest-friendly materials on platforms such as the Amazon Bioeconomy and Innovation Park. This was opened before the conference and will serve as an innovation center throughout. The Festival of Impact Investment and Sustainable Amazon Businesses also emphasizes entrepreneurial innovation. It highlights Amazonian materials and sustainable, forest-based supply chains, urging related sectors to emerge from the clutches of deforestation.

This COP could therefore be a turning point. The fashion industry, which is closely linked to agricultural supply chains, also has a strong incentive to act. Deforestation will directly impact compliance and reputation on a larger scale. Brands that take clear measures around supply chain transparency and forest risk management will therefore be better prepared to deal with external market pressures.