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 …
Brazilian soy producer SLC Agrícola said that it will stop deforesting in the Cerrado in 2020 and move to increasing productivity on already cleared land. However, its newly announced target to halt deforestation will not take effect right away. SLC Agrícola will continue to execute plans to clear land at its farms before shifting to …
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 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 …
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, …
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 …
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 …
