Reforestation in ESG Reporting: How to Report It Honestly

Reforestation in ESG reporting belongs in the contribution, biodiversity and community sections, not in the emissions inventory. Report the trees funded, the projects and partners, a modelled lifetime CO2 estimate clearly labelled as an estimate and the local working hours, and keep all of it separate from Scope 1, 2 and 3 totals and from any carbon credits.

Many companies fund tree planting and then struggle to describe it in a sustainability report. This guide covers where reforestation fits, what to disclose and how to word it so that every statement can be checked.

Where does reforestation belong in an ESG report?

ESG stands for environmental, social and governance. Reforestation touches the first two: restored land and habitat on the environmental side, paid local work and community involvement on the social side. It does not belong in the greenhouse gas (GHG) inventory, which records the company's own emissions in three scopes: Scope 1 (direct emissions), Scope 2 (purchased energy) and Scope 3 (the rest of the value chain).

The GHG Protocol Corporate Standard sets out how companies account for those emissions. Funding trees elsewhere does not change them, so the inventory figures stay the same with or without a planting project. The honest place for tree planting is a separate section, often called "climate contributions", "nature and biodiversity" or "community investment". The Science Based Targets initiative, which validates corporate targets, treats this kind of action as beyond value chain mitigation: welcome, but in addition to cutting emissions, not instead of it.

What should a company disclose about the trees it funds?

For each project, record:

• Trees funded and planting status. State how many trees were funded in the year and how many have been planted so far. Planting follows the local season, so trees funded late in the year may be planted in the next reporting period.
• Project, country and partner. Name the project and the local partner that does the planting, for example a mangrove project in Kenya or a highland forest project in Madagascar.
• Modelled CO2 estimate. Give the CO2 the trees are estimated to absorb over their lifetime, with the method and time frame, and label it as a modelled estimate, not measured removals.
• Community outcomes. Report estimated working hours or other social indicators supplied by the project, and say that they are estimates.
• Biodiversity context. Note the ecosystem being restored, such as mangroves, tropical forest or savannah, and any habitat protection linked to the project.
• Evidence. Keep certificates, photos and project updates on file. Sponsors follow their trees online through the project location, photos and updates.

Evertreen labels its own figures the same way: more than 3,680,000 trees funded through Evertreen, tree planting funded in 29 countries, more than 2.9 million tonnes of CO2 estimated over the lifetime of those trees, and more than 460,000 working hours for local communities (estimated). Project details are on Evertreen's transparency page.

How do tree planting, carbon credits and energy certificates differ in a report?

Tree planting is often listed next to other climate actions, but each has a different purpose and place in the report. Mixing them up is a common source of misleading claims.

Certified carbon credits are a distinct product, issued under standards such as Verra, Gold Standard, American Carbon Registry or Plan Vivo. Under the GHG Protocol they are reported separately and are not deducted from Scope 1, 2 or 3. If your company also retires credits, for example through Evertreen's verified carbon credits, give them their own section with registry details. Funded tree planting is not a credit and should never be described in credit language.

How to word reforestation claims honestly

Most problems come from wording rather than from the projects. A simple test: could a reader check each sentence against your records?

• Say "funded" until trees are in the ground. For example: "In [year] we funded [number] trees through Evertreen, planted with local partners in [country] as the planting season allows."
• Attach "estimated" to every CO2 figure. For example: "These trees have a modelled lifetime CO2 estimate of [number] tonnes. This is not a carbon credit and is not deducted from our reported emissions."
• Keep time frames visible. Young trees take years to grow, so do not present a lifetime estimate as something achieved in the reporting year.
• Do not net anything. Avoid phrasing that suggests the trees cancel or compensate for the emissions in your inventory.
• Describe your role accurately. The trees were funded by the company and planted by a local partner; they are not company assets.

Linking reforestation to CSRD, GRI and the SDGs

Reporting frameworks have no dedicated line for tree planting. Under the EU Corporate Sustainability Reporting Directive (CSRD), mandatory reporting now applies to companies above both EUR 450 million turnover and 1,000 employees, following Directive (EU) 2026/470, and the simplified European Sustainability Reporting Standards apply from financial year 2027 (optional for 2026). A funded planting programme usually sits outside the company's own value chain, so it is presented as voluntary information beside the climate and biodiversity disclosures, not inside their metrics.

GRI reporters can include the funding as a community investment. For the UN Sustainable Development Goals, tree planting with paid local work relates most directly to SDG 13 (climate action), SDG 15 (life on land) and SDG 8 (decent work).

Frequently asked questions

Can tree planting reduce a company's Scope 1, 2 or 3 emissions?

No. Scope 1, 2 and 3 figures describe the emissions a company and its value chain produce, and funding trees elsewhere does not change them. Tree planting is reported as a separate contribution with a modelled CO2 estimate.

Is funding reforestation the same as buying carbon credits?

No. Certified carbon credits are issued under standards such as Verra or Gold Standard and retired on public registries, while funded tree planting carries a modelled CO2 estimate and no credit. The two belong in separate parts of a report.

Why are trees reported as funded rather than planted?

Planting follows the local season, typically one to six months after funding, so trees funded near the end of a reporting year may not yet be in the ground. Reporting them as funded, and updating the planted figure later, keeps the statement accurate.

Does reforestation count towards the social part of ESG?

It can, when projects create paid local work or involve communities in caring for the land. Report the indicator used, such as estimated working hours, and say whether each figure is measured or estimated.

What evidence should a company keep for assurance of its tree planting?

Keep the certificates, project names and locations, project updates and photos, and the method behind any CO2 estimate. Companies in custom partnerships can also request the coordinates of their planting sites.

To see how CO2 figures for funded trees are modelled, read how Evertreen estimates tree CO2.