Analysis
Right: Between 2001 and 2023 Brazil lost 68 million hectares of tree cover
Previous page: The fund aims to support the ear-tagging and individual traceability of one million head of cattle in three years
The WWF argues that collective action increases the likelihood of success in addressing the environmental impacts of beef and leather production, and it will seek contributions to the fund from brands, retailers, leather processors and manufacturers. The fund will help to accelerate supply chain improvements, enabling companies to deliver their deforestation-free commitments, send strong market signals to cattle ranchers, beef producers and leather producers, and contribute to more sustainable leather production. The Deforestation-Free Leather Fund will support initiatives in the following areas: ■ Traceability systems to verify responsible sourcing: Extend existing initiatives and support new efforts to scale adoption and align effective systems that enable end-to-end traceability in cattle supply chains.
■ Farm-level investments to promote the supply of deforestation and conversion-free leather: Direct investments to address farm-level challenges and opportunities to improve cattle production.
■ Farm regularisation to support market access: Assist farmers and ranchers to formalise operations, rehabilitate degraded farmland, and establish pathways for continuous improvement.
The fund aims to support the ear-tagging and individual traceability of one million head of cattle in the first three years of activity, promoting the recovery of 45,000 hectares (111,200 acres) of degraded land in the same period. The WWF will oversee the governance and day-to-day management of the fund, aiming to collect $10m from companies to cover the first three years of on-the-ground operations. For brands and retailers, contributions will be requested
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based on annual revenue. For companies with an annual revenue of less than $100m, the minimum annual contribution expected would be $50,000; for companies with an annual revenue of between $100m and $1bn that figure would be $100,000; for businesses with revenue of between $1bn and $5bn the contribution would be $200,000; and for companies with revenues of more than $5bn the minimum annual contribution expected is $250,000. For leather processors and manufacturers, contributions will be requested based on the number of hides processed annually. For wet-blue tanneries the contribution level is $0.01 per hide, while for re-tanning and finishing tanneries the contribution level is $0.03 per hide.
The timeline for progress began with the March 2025 formal announcement and dissemination of communications, continues to September with company engagement and onboarding, and beyond September moves forward with establishing a governance structure and beginning implementation in the three key priority areas. Speaking at an online briefing discussing the new fund, Bellese said that it was hoped that the fund would continue to run for longer than the initial three years outlined, at least until the issue was no longer “a hot topic”.
He added that the WWF – which works in nearly 100 countries to help people and nature thrive – was already talking to organisations, and would target for support for the fund from between 15 and 30 companies.
Financial commitment Tapestry, Inc., a New York-based house of lifestyle brands including Coach and Kate Spade, is one of
Leather International /
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