Brazilian soy exports have risen steeply amid the COVID-19 pandemic as a result of attractive exchange rates, agribusiness expansion, US-China tensions, and efforts to mitigate the risk of supply chain uncertainties. As demand for Brazilian soy soars, agribusinesses and farmland developers are seizing the opportunity to expand in the biodiverse Cerrado biome in western Bahia, …
Investors have recently stepped up their pressure on meatpacking companies operating in the Amazon over deforestation, meeting with government officials, warning of growing reputational risks for the sector, and even threatening divestment. One investor has followed through on the divestment threat, selling EUR 40 million worth of shares. Nordea Asset Management has divested from JBS …
In a landmark 2019 report, the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services studied changes in biodiversity over five decades and found that “around 1 million animal and plant species are now threatened with extinction, many within decades, more than ever before in human history.” Amid a doubling population and quadrupling economic growth, the …
On July 7, 2020, PT Pradiksi Gunatama held an Initial Public Offering (IPO) on the Indonesia Stock Exchange. On the day the IPO went public, the Indonesia Stock Exchange reported a 34.78 percent increase in the company’s share price. The IPO raised proceeds of IDR 103 billion (over USD 7 million). The company plans to use …
Yum China Holding Inc. (YUMC) is the largest restaurant chain in China. In June 2020, YUMC reportedly filed for a confidential secondary listing in Hong Kong. This report presents the company’s deforestation risk exposure and associated financial risks. Download the PDF here: Major Deforestation Footprint a Risk for Yum China’s Secondary Listing Key Findings: As …
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 Pembelian di Pasar Spot Memungkinkan Minyak Kelapa Sawit yang Berkaitan dengan Deforestasi untuk Memasuki Rantai Pasokan NDPE Industri perkelapasawitan mengalami transformasi yang cukup berarti selama beberapa tahun terakhir, karena semakin banyak pemasok yang tidak mematuhi kebijakan NDPE dikeluarkan dari rantai pasokan. Namun, kemajuan ini dilemahkan oleh situasi ketika pemasok yang …
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. Chain Reaction Research (CRR) analysts …
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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