Analysis by Chain Reaction Research (CRR) shows that ten palm oil companies were alone responsible for approximately 39,500 hectares (ha) of deforestation and peat development in Indonesia, Sarawak (Malaysia) and Papua New Guinea in 2019. This total amounts to roughly 44 percent of all deforestation detected within known oil palm concessions in these regions last …
BlackRock, the world’s largest asset manager, recently released a report on its engagement with agricultural firms and the risks and opportunities the industry faces connected to environmental and social (E&S) issues. The communication comes just weeks after the investment firm joined the Climate Action 100+ group and emphasized that climate change is now central to …
Indonesia’s state-owned energy company Pertamina has ended an agreement with Italian Eni to build a refinery to turn palm oil into biodiesel. The end of the partnership, which was agreed last year, is a consequence of Eni’s stricter sustainability standards. The standards were stronger than Pertamina was willing to accept. Pertamina and Eni, under a joint venture, …
Brazilian meatpacker JBS has signed a Memorandum of Understanding (MoU) with Chinese company WH Group to boost its sales of fresh meat in China, where consumption is rising at a rapid pace. This deal could bring in 3 billion Brazilian real (USD 717 million) per year for the two companies, and first shipments should begin …
The trend to integrate sustainability factors into financial regulatory frameworks is creating compliance, legal and reputational risks for local banks and investors financing forest-risk commodities in tropical countries. International banks and investors exposed to these supply chains may also be affected. Based on public sources and interviews, this report analyses the integration of sustainability in …
This report analyses the sustainability and financial risks of the farmland investment funds of the Teachers Insurance and Annuity Association of America (TIAA, formerly TIAA-CREF) in Brazil. Such risks are most prevalent in Matopiba, Brazil’s newest soy frontier, consisting of part of the states of Maranhão, Tocantins, Piauí and Bahia. TIAA farmland investments operate through …
Driven by the booming global meat industry and growing markets for vegetable oils, soybeans have become the primary protein crop globally. High production growth rates are particularly prevalent in South America, contributing to massive deforestation, biodiversity loss, fires and emission of greenhouse gases. The Matopiba region, home to most of the remaining native vegetation of …
By revenue, Walmart is the largest company in the world, employing about 2.2 million people and serving over 265 million customers a week. Private-label products sold by Walmart contain commodities that contribute to deforestation. For the forest-risk commodities – palm oil, pulp and paper, soy, and beef – Walmart has set zero net deforestation goals for 2020. Although …
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 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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