In the first six months of 2019, ten companies were responsible for almost 19,000 hectares (ha) of deforestation in Malaysia, Indonesia, and Papua New Guinea. This amount represents approximately 50 percent of the estimated 40,000 ha of forest and peat that has been cleared in these regions in 2019 and which can be attributed to …
Indofood Sukses Makmur’s (Indofood) financial statements for 1H19 show that Citigroup, Standard Chartered and Rabobank no longer offer credit facilities to the company. Both Rabobank and Citigroup have reportedly cut ties with Indofood because of sustainability concerns at its subsidiary Indofood Agri Resources (IndoAgri) and related entities. Combined, the three banks provided credit facilities of …
The European Commission (EC) this week released proposals to step up action to reduce deforestation globally and cut the EU’s exposure to deforestation-linked commodities. The EC laid out plans to stimulate the use of deforestation-free products through both “regulatory and non-regulatory measures.” Recognizing that relying on voluntary approaches and non-binding guidance is not enough, the …
BlackRock’s recent statement that it is engaging with palm oil companies to better understand the industry’s challenges related to biodiversity and deforestation marked the first public acknowledgement from the firm of ESG risks associated with this sector. “Our engagements were part of an ongoing, multi-year effort to further our understanding of, and encourage companies to …
Glencore Agriculture is an agricultural commodity trading company that operates in corn, cotton, soy, and grains markets. Glencore Agriculture has been a stand-alone business since Glencore PLC divested in 2016. Its main shareholders are Glencore PLC (49.99 percent), the Canada Pension Plan Investment Board (CPPIB; 39.99 percent) and the British Columbia Investment Management Corporation (BCI; …
Cargill is the largest privately-held company in the United States and the second largest soy exporter in Brazil. In April 2018, Chain Reaction Research (CRR) concluded that Cargill’s 2030 zero-deforestation deadline allowed its Brazilian suppliers to continue deforesting in the Cerrado. This report assesses Cargill’s current deforestation risks in Brazil’s soy supply chain, given recent …
In 2017, Chain Reaction Research (CRR) reported 6.1 million hectares (ha) of forest and peatland remained on oil palm concessions, land that can be considered “stranded assets.” This update discusses figures and trends in the palm oil industry since 2017 and argues that oil palm development on forest and peatland will remain economically unviable for …
Many fast-moving consumer goods (FMCG) companies have publicly committed to a 2020 deadline to end deforestation in their supply chains. However, it is becoming increasingly clear that most FMCGs will not meet this deadline. NGO campaigns against individual FMCGs and benchmark studies that show the differences in implementation of zero-deforestation commitments indicate increasing reputation risks …
PRI side event organised by Chain Reaction Research (CRR) Deforestation exposes upstream companies to market access risks, stranded asset risks and the risks of higher costs of capital. For the downstream fast‐moving consumer good (FMCG) companies, including food retailers, the value of these risks might be dwarfed by the value of reputation risk. This risk could become …
When: June 17, 2019 10:00 AM in Eastern Time (US and Canada) Description: Many fast-moving consumer goods (FMCG) companies have publicly committed to a 2020 deadline to end deforestation in their supply chains. However, it is becoming increasingly clear that most FMCGs will not meet this deadline. Not meeting the 2020 deadline for zero-deforestation commitments …
The 2019 “Summer in the City” CSR Investing Summit, sponsored by S-Network Global Indexes, is an all-day conference that presents a forum for engaging with thought leaders and discussing their points of view on how to define, manage, and measure responsible investing. The conference includes expert practitioners who are plan sponsors, endowments, consultants, academics, non-governmental …
On behalf of Fern, Aidenvironment & Principles for Responsible Investment (PRI), you are invited to the event “Responsible Investment into Sustainable, Deforestation-free Supply Chains – Which EU Policies Do We Need?” which will take place on May 6, from 12.30 to 15.00 at the Norway House, Rue Archimède 17, 1000 Bruxelles. To register, please click here. Focusing on …
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 Lucille 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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