As climate change accelerates, public
institutions are wavering. Financial commitments are stalling. Some governments
are even rolling back
support.
But the companies that will thrive in the decade ahead aren’t stepping away from
the challenge: They’re stepping up. Because retreat is not resilience — and
delay is not strategy.
Even in these confusing, volatile times, the smartest businesses recognize that
climate risk is business
risk
and are doubling down on high-integrity carbon
removal.
But this goes beyond carbon math: True climate leadership means investing in
people — especially in the frontline
communities
where the stakes are highest and the impact goes furthest.
Take forests: They’re still the most powerful carbon-removal tool we have. But
trees alone don’t fix the future. Reforestation without local stewardship fails
— economically, environmentally and ethically.
What works are long-term, community-led
projects
rooted in positive carbon impact and economic resilience. These aren’t just
sustainability wins. They’re market-shaping, risk-reducing, brand-building
investments.
Reforestation efforts that prioritize people, especially in regions most
affected by deforestation and climate change, don’t just work better. They last
longer, create shared value; and ensure that carbon benefits are real and
measurable.
Many corporate-funded reforestation
efforts
fail — not because trees weren’t planted, but because the projects ignored a
critical factor: The people who depend on and manage these
landscapes.
Without deep community involvement, forests won’t survive — let alone thrive. If
corporate investors want lasting climate impact, they must rethink how they
evaluate reforestation projects.
In a time of retreat, corporate resilience means not just holding the line but pushing it
forward. The future belongs to those bold enough to plant it.
Forests need more than just trees — they need long-term stewardship
Forests are one of the world’s most powerful carbon sinks, absorbing 7.6
billion metric
tons of CO2
annually — outpacing all engineered carbon-removal technologies combined. Yet,
the world is losing 10 million hectares of
forest
every year. Conservation and reforestation are no longer a “nice to have” —
they’re a necessity.
However, not all reforestation projects are created
equal.
Many well-intentioned corporate initiatives have focused on monoculture
plantations — large-scale plantings of a single species. While these projects
may look impressive on paper, they often degrade soil, deplete water resources
and fail to support biodiversity. Worse, they frequently collapse within years —
providing no lasting carbon benefits. In fact, a 2019 study
in Nature found that nearly
half of planned new forests are monoculture tree farms — undermining their
long-term climate potential.
The alternative is clear: native, biodiverse forests that restore ecosystems,
create resilient carbon sinks, and generate sustainable local livelihoods. But
healthy forest
ecosystems
don’t grow themselves — they require expert forestry, long-term funding and,
most importantly, the full participation of the communities that call these
landscapes home.
Why corporate reforestation investments must prioritize people
Local communities are the key to ensuring reforestation projects last. In many
regions, economic necessity drives deforestation — whether through
unsustainable agriculture, logging or land
conversion.
The only way to reverse this trend is by aligning reforestation efforts with
economic opportunity, ensuring that communities see tangible benefits and become
stewards of the forest.
High-quality reforestation projects don’t just plant trees; they create
sustainable livelihoods. From
agroforestry
and apiculture
to
ecotourism
and more, these models provide income while preserving biodiversity. Companies
funding reforestation must go beyond carbon
credits and
assess whether their investments create lasting economic resilience for local
populations.
Beyond economics, corporate investors must also consider the equity implications
of their projects. Marginalized communities — particularly in tropical regions —
have borne the brunt of deforestation and climate change. Top-down conservation
efforts that exclude local voices risk displacing communities rather than
empowering them. With the rise of community-centered carbon
projects,
there is now a clear blueprint for how to do this right: Projects that share
financial benefits fairly, support local governance and integrate community
expertise into every stage of the process.
A corporate wake-up call: Fund the right reforestation projects
The reforestation industry is shifting. Investors can no longer afford to fund
projects that fail because they ignore the realities of land use, local
economies and community governance. Verra’s recently announced Nature
Framework provides an emerging standard: Projects should consult at least 50 percent
of households within the project area and 20 percent of households within 20 km
of the project boundary. These types of rigorous community-engagement standards
will separate high-impact projects from short-lived
ones.
Corporate sustainability teams must ask tougher questions before funding reforestation:
-
Does this project prioritize native species and biodiversity over
monoculture plantations?
-
How are local communities directly benefiting — financially and otherwise?
-
Are the people who depend on this land involved in its restoration and
long-term care?
The future of corporate climate action: People-first reforestation
Companies investing in reforestation have a choice: Fund projects that look good
temporarily, or invest in forests that will survive and sequester carbon for
generations. The difference comes down to one factor — people. Sustainable
reforestation means supporting local expertise, ensuring fair compensation and
integrating community stewardship into every stage of the project.
The real question isn’t whether companies should support reforestation — it’s
whether they’re funding the right kind. Sustainable, native reforestation
projects deliver real carbon impact, real biodiversity gains and real economic
benefits to local communities. Anything less is a missed opportunity — and a
risk.
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Published May 28, 2025 8am EDT / 5am PDT / 1pm BST / 2pm CEST