This month India began boycotting Malaysian palm oil, a move that could increase the country’s reliance on volumes from Indonesia. This development could lead to greater leakage risks, as India may purchase more volumes from non-NDPE sellers in Indonesia. Deforestation rates for oil palm are higher in Indonesia than in Malaysia. With a majority of …
Agriculture giant Bunge recently announced that it closed its first sustainability-linked revolving credit facility, worth USD 1.75 billion. The new facility agreement links Bunge’s interest rate to its performance on five sustainability targets. These involve cutting greenhouse gas emissions with improved industrial efficiency; increased traceability on its agricultural commodity supply chains; and increased sustainable practices …
A group of lawmakers in the U.S. House of Representatives last month sent letters to major U.S.-based financial institutions calling on them to take specific actions to influence agricultural companies to reduce deforestation in Brazil. The letters, spearheaded by Rashida Tlaib (Democrat-Michigan), highlight the financial sector’s investments in firms that are exposed to deforestation risks …
Key members of the soy industry, major corporations, and actors in the financial community are collaborating on efforts to protect against increased deforestation in Brazil’s Amazon and Cerrado. A letter sent by 84 companies, including Fast Moving Consumer Goods companies, as well as investors with more than USD 3 trillion in assets under management, at …
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 …
Oil palm plantation development and its effects on land clearing has likely impacted areas of critical value to local communities. While palm growers have made progress in quantifying and compensating loss for areas with environmental value, they have made less headway regarding compensation for clearing of land with social and cultural values. If palm growers …
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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