This Chain is part of a series on how the COVID-19 crisis is affecting agricultural markets and investor flows. The global food chain continues to see major disruptions as a result of the global outbreak of COVID-19. One of the main factors behind disrupted supply chains is workers falling ill with COVID-19, forcing companies to …
This Chain is part of a series on how COVID-19 is affecting agricultural markets and investor flows. Many indigenous groups are now facing threats on multiple fronts: a healthcare crisis; encroachment of tribal lands; and an upcoming fire season. Remote tribes in Brazil are particularly vulnerable as illegal intrusions rise and landgrabbers are increasingly legitimized …
BrasilAgro, a publicly-traded farmland investor, has expanded its farmland holdings by 33,500 hectares (ha) in recent months. Native vegetation covers 11,915 ha of this area, and it may be at imminent risk of being cleared if BrasilAgro moves ahead with its development plans. Its two recent purchases indicate that BrasilAgro continues to aggressively implement its …
Mizuho has adopted stricter forest policy financing standards, paving the way for stronger ESG actions in the Japanese banking sector. Mizuho is now the standard by which to evaluate the policies of other Japanese megabanks, which is prompting a shake-up in the industry. Sumitomo Mitsui Banking Corporation (SMBC) has already followed Mizuho’s lead in strengthening …
Widespread fires in Brazilian tropical forests were at the center of media attention in 2019. NGOs, politicians and celebrities called for action to stop deforestation for soy and livestock, the main cause of the fires. Indonesia also endured extensive blazes in 2019, often linked to deforestation for palm oil. Forests in Brazil and Indonesia capture …
Palm oil refiners are a strategic bottleneck in the global supply chain. Since 2014, the largest refiners have adopted No Deforestation, No Peat, No Exploitation (NDPE) policies, the strongest private instrument to cut the direct link between deforestation and palm oil. Refiners commit to NDPE policies that cover their plantations and the plantations of their …
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 …
CRR Webinar: Which companies are most exposed to deforestation-driven fires in their supply chains? Expanding agricultural production was one of the main factors behind the Brazilian tropical fires that shocked the world in 2019. Indonesia also endured extensive blazes, often linked to deforestation for palm oil. NGOs, politicians and celebrities called for action to stop …
When: March 26, 2020 10:00 AM Eastern Time (US and Canada) Description: The global meat industry and the market for vegetable oils such as soybeans have seen a massive boom in recent years. High production growth rates, fueled by consumer demand in Brazil, the EU and China, are particularly prevalent in the Brazilian Cerrado, contributing …
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 …
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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