In complex situations where environmental and human rights issues are not addressed by local regulation, shareholders can drive corporations to promote significant change by demanding more from their suppliers. This is evident in Mexico's avocado industry, where shareholder engagement, political action, and NGO efforts are tackling illegal deforestation and its impacts.  

Mexico’s avocado boom has come at a high cost. Over 10 football fields of forest are cleared daily for avocado orchards, often illegally. This deforestation depletes water supplies, destroys habitats like the Monarch Butterfly Biosphere Reserve, and fuels criminal activities through land seizures and corruption.  

In 2023, a New York Times exposé based on a Climate Rights International (CRI) report revealed the industry’s dark side. Using satellite imagery, CRI traced avocados in U.S. supermarkets back to illegally deforested lands, sparking outrage. The report prompted action from environmental NGOs, policymakers, and retailers.  

In February 2024, six U.S. senators urged the Biden administration to ensure the US-Mexico avocado trade does not drive illegal deforestation. This coincided with the Super Bowl, a peak avocado consumption period, prompting Michoacán’s governor and Mexico’s agricultural secretary to act.  

Noting this growing risk, As You Sow filed engagements with three major U.S. companies – Target, Kroger, and Mission Produce – highlighting illegal deforestation in their supply chains and advocating for a solution: Michoacán’s new certification system. Developed with the NGO Guardián Forestal, the system uses GPS data to verify avocado sourcing. Orchards established before 2018 are deemed legal while newer ones without permits are flagged as illegal.  

The results were immediate. Agreements were reached with Target and Mission Produce, both committing to avoid avocados from illegally deforested orchards. Mission Produce, a leading supplier, adopted the certification system, recognizing its potential to ensure ethical sourcing. This success demonstrates the power of collaborative, solution-oriented action.  

Kroger, however, remains the only holdout, yet to commit to the system. Despite this, the progress with Target and Mission Produce underscores the engagement process’s success. The certification system is fully functional and offers a clear path for companies to ensure deforestation-free supply chains.  

Other retailers and distributors now have the opportunity to not only leverage this verification system to avoid illegal deforestation in the Michoacán avocado market but also to seek its expansion to other Mexican states. By ensuring avocados aren’t coming from recently deforested land, companies can help disincentivize further deforestation in the region.  

Solution-oriented action can solve the world’s toughest environmental and social issues. The collective action on avocado-driven deforestation provides a blueprint for how industries can work through complex challenges and champion solutions for lasting and meaningful change. This success story highlights the importance of corporate accountability and the potential for collaborative efforts to drive progress.