The continued increases in Chinese imports of soy and beef from Brazil have contributed to high deforestation rates in both the Amazon and the Cerrado. In recent years, the China-Brazil trade link has tightened amid volatile U.S.-China relations, the depreciation of the Brazilian Real, and the African Swine Fever outbreak. Brazilian exports of frozen beef …
The United Kingdom and Germany have recently announced new bills aimed at achieving deforestation-free commodity supply chains. The bills also focus on decarbonization of the transportation and energy sectors, and, if enacted, they would help countries meet climate change and greenhouse gas emission reduction targets. At the same time, however, Indonesia plans to implement a …
As investors seek to increase the sustainability and resilience of portfolios and financial institutions expand the selection of sustainable funds globally (3,432 as of 2Q 2020), there is growing interest in mitigating Environmental, Social, Governance (ESG) risk in equity portfolios. Already, signatories to the Principles for Responsible Investment (PRI) have increased by 28 percent in …
The Brazilian company JBS SA is the largest meat processor in the world based on sales. The company operates five main business units: JBS Brazil, Seara, JBS USA Beef, JBS USA Pork, and Pilgrim’s Pride. This paper assesses the deforestation exposure and the physical and transition risks from JBS’ operations in Brazil. CRR has located …
Only two years since Chain Reaction Research’s report on cattle-driven deforestation, beef production in Brazil has expanded measurably under favorable political, legislative, and enforcement changes. This development has occurred alongside increased deforestation, fires, and land-grabbing in the Amazon. Investors and buyers in global supply chains have responded by demanding more compliance and transparency from the …
The Brazilian government has sent mixed signals regarding the urgency to tackle deforestation in the country. As pressure from international investors has stepped up against land clearing for agricultural purposes in Brazil, the government has said it will take steps to assuage their fears and reduce forest loss. However, when speaking to domestic audiences, government …
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 …
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 Report Webinar Recording: …
BlackRock Investment Stewardship released a report on sustainability this week, providing an overview of the asset manager’s voting practices and engagement in 2020 connected to climate change. BlackRock, the world’s largest asset manager, says that it has voted against 53 companies for not making enough progress in disclosing climate risks or integrating these risks into …
This Chain is part of a series on how the COVID-19 crisis is affecting agricultural markets and investor flows. Amid widespread outbreaks in crowded meat processing facilities and a major decline in restaurant demand, innovative solutions for those operating along agricultural supply chains are accelerating during the era of COVID-19. International megatrends that were disrupting …
