A new report by CRR member Aidenvironment puts deforestation for industrial trees in Indonesia in the spotlight and also highlights an issue of increasing concern in the sector: palm oil companies exposed to deforestation for other commodities. Since 2016, the Nusantara Fiber group has converted 26,000 hectares (ha) of forest into industrial tree plantations in …
A new report by the Indonesian Consortium for Agrarian Reform (Konsorsium Pembaruan Agraria/KPA) revealed that the COVID-19 pandemic has not slowed the growing number of land conflicts in Indonesia. Instead, more than 200 new agrarian conflicts emerged throughout 2020, with 69 percent (163 cases) related to the plantation and forestry (pulpwood) sector. The development of …
The High Carbon Stock Approach (HCSA) has issued a new statement clarifying its procedures for how HCSA assessments should be conducted and how companies can claim to be compliant with the HCSA. The new rules, announced on February 4, follow the announcement of the organization’s first grievance mechanism and come amid increased focus on how …
Pada tahun 2020, Chain Reaction Research menemukan deforestasi di sejumlah area konsesi kelapa sawit di Indonesia, Malaysia, dan Papua Nugini dengan total sekitar 38.000 ha. 22.000 hektar dari total tersebut (58 percent) diakibatkan oleh sepuluh grup perusahaan kelapa sawit di Indonesia, sedangkan sisanya terbagi ke 112 perusahaan lainnya. Total pembukaan hutan tahun 2020 merupakan jumlah …
China is a key market for palm oil (PO), palm kernel oil (PKO) and derivatives from Indonesia and Malaysia. This paper maps the role of the Chinese market and Chinese actors along the palm oil supply chain, from upstream production to midstream trading to downstream consumption, as well as the position of Chinese financial institutions …
In 2017, the Task Force for Climate-Related Financial Disclosure (TCFD) released its recommendations for climate-related disclosures in financial filings. The TCFD has since become the de facto global standard for the financial sector to report on climate change risks. This paper presents a framework for assessing deforestation-related risks in agricultural commodity supply chains that is …
The beef and soy sectors have been two of the major drivers of deforestation in the Brazilian Amazon and Cerrado biomes in recent years. Financial institutions with exposure to these sectors may be inadvertently contributing to climate change and biodiversity loss. As global stakeholders react to these threats, financial institutions may become increasingly more exposed …
This report discusses the role of South Korean companies in the worldwide palm oil market and the country’s position as an owner of oil palm concessions, a buyer of palm oil products, and a financier of palm oil operations. The analysis highlights the country’s role in the palm oil “leakage market,” which trades unsustainable palm …
CRR research has found that South Korean companies are significant leakage players as both developers of plantations and buyers of palm oil products. Six South Korean plantation owners have significant non-compliance issues linked, to environmental, social, and human rights issues. The top South Korean buyers of Indonesian palm lack the world’s best sustainability commitments, and …
JBS, Marfrig, and Minerva are the largest meat processors in Brazil, dominating beef processing and exports. Our latest report assesses the companies’ exposure to deforestation and analyses their market, reputation, and technology risks. Our analysis shows: – The companies show little progress in monitoring indirect supply chains; – They face material financial risks from European …
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 …
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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