Plans by the Selangor State Agricultural Development Corporation (Perbadanan Kemajuan Pertanian Selangor/PKPS) to clear a peat swamp forest in Sabak Bernam District in the Malaysian state of Selangor risk the company’s presence in the supply chains of leading fast moving consumer goods companies (FMCGs) and traders/refiners. The plans have also triggered a coalition of NGOs …
A new Greenpeace investigation finds that Brazil’s leading meat processor JBS and its top competitors Marfrig and Minerva purchased cattle from ranchers linked to the 2020 Pantanal fires as well as other environmental and social controversies in recent years. The meatpackers reportedly continue to source from some of these ranchers despite having been informed about …
A new lawsuit has been filed against the Casino Group, a major French supermarket chain with Latin American subsidiaries, claiming that the company’s supply chain practices in Brazilian and Colombian cattle are in violation of France’s Due Diligence law. The incident reflects the increasing legal, financial, and reputational risks that Casino and its peers are …
Since 2013, Chain Reaction Research (CRR) has provided sustainability risk analysis for financial analysts, credit analysts, commercial bankers, institutional investors, corporations, and other stakeholders. Through our work, we have demonstrated that deforestation is a material financial risk in soft commodity markets, including palm oil, soy, cattle, coffee, cacao, timber pulp and paper, and other products. …
This report discusses the role of Japan in the worldwide palm oil and timber market, looking particularly at the country’s position as a buyer and financier of unsustainable palm oil and plywood. Download the PDF here: Japan-Major Financier and Buyer of Leakage Palm Oil and Plywood Key Findings: Japan, a large buyer of palm oil …
The Cerrado biome, a vast, biodiverse tropical savannah in Brazil, is under threat from commodity-driven deforestation. Soy expansion and cattle ranching are direct drivers of forest loss in the Cerrado. This report presents new data on specific actors linked to Cerrado deforestation in 2020, including the quantified risk exposure of the largest soy traders, meatpackers, …
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 …
On April 15th, the Zoological Society of London SPOTT (ZSL SPOTT), Chain Reaction Research (CRR), and Orbitas hosted a webinar to discuss financiers should analyze a broad range of risks amongst palm oil companies in Indonesia as well as the whole supply chain to inform their ESG investment and lending strategies. Combining company transparency and …
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, …
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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