A palm oil company clearing forest in the Malaysian state of Sabah, Aspirasi Kristal Sdn Bhd, has ownership links to the Malaysian palm oil grower and trader IOI Corporation. In 2011, the State Government of Sabah granted a 5,033 hectare (ha) concession to Aspirasi Kristal Sdn Bhd. The concession is within the Bonggaya Forest Reserve, …
A number of companies, including high-profile traders, have recently announced progress in efforts to reduce deforestation in the Cerrado soy supply chain. Chinese COFCO International aims to strengthen its traceability system to go deforestation-free by 2023, while seafood company Mowi has committed to sourcing only deforestation-free soy by next year. Meanwhile, members of the Soft …
Norwegian Grieg Seafood will not allow any funds from its Green Bond to be used to purchase feed supply from Cargill Aqua Nutrition, which is wholly owned by Cargill Inc. Grieg Seafood has excluded Cargill purchases from the eligible project types because of Cargill Inc.’s connections to deforestation in the Cerrado soy market. Grieg Seafood …
A historic 2019 fire season in Brazil came as a surprise for many and garnered the attention of the entire world. Between July and October of last year, 981,282 fire alerts were registered in Brazil, an 83 percent increase compared to 2018, as CRR showed in a recent report. In the wake of accelerating deforestation …
Fast Moving Consumer Good (FMCG) companies have increasingly developed zero-deforestation or NDPE policies. Still, deforestation continues to show up in the supply chain of various FMCGs for which palm oil and its derivatives are a material input. Weak monitoring and verification mechanisms at times allow leakage of deforestation-linked palm oil into supply chains and consequently …
The palm oil industry has seen considerable transformation in the last few years, as suppliers that are not compliant with NDPE policies have been increasingly excluded from supply chains. However, these gains are undermined when the same suppliers enter supply chains via spot purchases. Yet, little is known about the spot market. This paper seeks …
Laporan diterjemahkan ke Bahasa Indonesia Perusahaan Perkebunan Kelapa Sawit yang Dibekukan Karena Deforestasi Kehilangan Nilai Ekuitas Sebesar 1,1 Miliar Dollar AS Semakin banyak perusahaan dagang dan penyulingan minyak kelapa sawit yang mengadopsi kebiajakan No Deforestation, No Peat, No Exploitation (NDPE). Oleh karena itu, perusahaan yang tidak mematuhi kebijakan NDPE dibekukan oleh para pembelinya, menyebabkan hilangnya …
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 spot markets have become a backdoor that has allowed non-compliant producers to enter into the supply chains of companies with No Deforestation, No Peatland, and No Exploitation policies. The spot market’s nature allows palm products to cross many hands before reaching their final destinations, making due diligence difficult. Please join Chain Reaction Research …
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 …
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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