An investigation by the Bureau of Investigative Journalism (TBIJ) has shown that soy used to feed livestock in the United Kingdom originates from industrial farms in the Cerrado biome that have recently seen deforestation and wildfires. The study highlights Fazenda Parceiro, the SLC Agricola farm in the state of Bahia that saw large wildfires earlier …
Companies and their financiers are exposed to a variety of financial risks when linked to deforestation, ranging from reputational damage to reduced market access. Of the companies that disclosed information on involvement with forest-risk commodities in CDP’s 2018 survey, two-thirds conducted risk assessments of forest-related issues and 92 percent of risk assessments identified substantive business …
The Rainforest Action Network (RAN) has sent letters to the heads of major financial institutions that may be involved in a USD 2 billion syndicated loan for Indofood CBP, a subsidiary of Indofood Sukses Makmur (Indofood). RAN’s letters are an effort to put a spotlight on the continued financing of Indofood and its subsidiaries despite …
In an unprecedented move, BlackRock voted in favor of a shareholder resolution requesting an assessment report to identify further opportunities to combat deforestation and degradation of intact forests in Proctor & Gamble (P&G) supply chains. BlackRock, State Street, and Vanguard, the “Big Three” asset managers, have a combined USD 62 billion in P&G stakes (as …
Casino Group is a French multi-banner food retailer, and its subsidiary Grupo Pão de Açúcar (GPA) is Brazil’s second largest retailer. This report analyzes GPA’s deforestation risk exposure based on research carried out by Envol Vert, Réporter Brasil, and Chain Reaction Research (CRR) which shows that GPA purchased beef sourced from farms involved in illegal …
The Brazilian company JBS SA is the largest meat processor in the world based on sales. The company operates five main business units: JBS Brazil, Seara, JBS USA Beef, JBS USA Pork, and Pilgrim’s Pride. This paper assesses the deforestation exposure and the physical and transition risks from JBS’ operations in Brazil. CRR has located …
Only two years since Chain Reaction Research’s report on cattle-driven deforestation, beef production in Brazil has expanded measurably under favorable political, legislative, and enforcement changes. This development has occurred alongside increased deforestation, fires, and land-grabbing in the Amazon. Investors and buyers in global supply chains have responded by demanding more compliance and transparency from the …
Yum China Holding Inc. (YUMC) is the largest restaurant chain in China. In June 2020, YUMC reportedly filed for a confidential secondary listing in Hong Kong. This report presents the company’s deforestation risk exposure and associated financial risks. Download the PDF here: Major Deforestation Footprint a Risk for Yum China’s Secondary Listing Report Webinar Recording: …
Fast-Moving Consumer Goods Companies (FMCGs) had aimed to eliminate deforestation in their supply chains by 2020, but most are lagging in implementing and executing their zero-deforestation policies. This exposes them to growing reputation risk as consumers, NGOs, and governments pressure them to increase their ambitions. Some FMCGs have recently reaffirmed their commitments to curbing deforestation, …
French Casino Group and its subsidiary Grupo Pão de Açúcar (GPA), Brazil’s second-largest retailer, are facing a significant legal risk due to allegations of non-compliance with French law. Research by Envol Vert, Réporter Brasil, and Chain Reaction Research (CRR) shows that GPA purchased beef sourced from farms involved in illegal deforestation and encroachment on indigenous …
China is currently the world’s largest meat producer and consumer and experiencing sharp increases in imported soy and beef from Brazil that have contributed to deforestation in the Cerrado and Amazon. From January-May 2020, Brazil’s soybean exports to China increased by around 36.8 percent year-on-year, and Brazilian exports of frozen beef to China grew by 128 percent …
In recent years, beef production in Brazil has expanded considerably amid favorable political, legislative, and enforcement changes. These trends have occurred at the same time as deforestation, fires, and land-grabbing in the Amazon have all increased. Investors and buyers in global supply chains have, meanwhile, started demanding compliance with sustainable practices and transparency from the …
Chain Reaction Research (CRR) strives to provide objective insight and unbiased analysis on market trends and company and investor risk for its readers. CRR determines content based on what is considered to be of broad interest to readers and whether it can provide candid, high-level debate.
Chain Reaction Research conducts free sustainability risk analysis for financial analysts, credit analysts, commercial bankers, institutional investors, corporations, and other stakeholders. Our special focus is demonstrating that deforestation is material financial risk. We focus on tropical deforestation-related commodities including palm oil, soy, cattle, coffee, cacao, timber pulp and paper, and other products. We are funded by the David and Lucile Packard Foundation, the International Climate and Forest Initiative (NICFI) scheme managed by the Norwegian Agency for Development Cooperation (Norad), and the Moore Charitable Foundation. Chain Reaction Research statements and materials do not necessarily reflect the standpoints of the Packard Foundation, the Moore Foundation or Norad.
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