Since the Amazon fires became worldwide news in August, companies operating in Brazil and the country itself have come under increased scrutiny and greater pressure from investors to address their roles in deforestation. Evidence shows that the fires in the Amazon overlap with human-driven deforestation. The likely response by the international community, consumers, and investors …
High deforestation rates in Brazil and massive fires in the Amazon have put agricultural companies operating in the country and their investors in the spotlight. Agricultural supply chains are key drivers of deforestation, with cattle and soy playing major roles. With agricultural expansion taking place in Brazil and environmental regulations having been loosened there since …
The main drivers of deforestation in Ecuador are similar to those in other countries in the region: The cattle industry; logging (both for fuel and for commercial purposes); plantations for oil palm, cacao, and coffee production; crude oil production; growing crops for bioethanol production; mining; and infrastructure development. With most agricultural commodity production done by …
Glencore Agriculture is an agricultural commodity trading company that operates in corn, cotton, soy, and grains markets. Glencore Agriculture has been a stand-alone business since Glencore PLC divested in 2016. Its main shareholders are Glencore PLC (49.99 percent), the Canada Pension Plan Investment Board (CPPIB; 39.99 percent) and the British Columbia Investment Management Corporation (BCI; …
The European Commission (EC) this week released proposals to step up action to reduce deforestation globally and cut the EU’s exposure to deforestation-linked commodities. The EC laid out plans to stimulate the use of deforestation-free products through both “regulatory and non-regulatory measures.” Recognizing that relying on voluntary approaches and non-binding guidance is not enough, the …
Cargill is the largest privately-held company in the United States and the second largest soy exporter in Brazil. In April 2018, Chain Reaction Research (CRR) concluded that Cargill’s 2030 zero-deforestation deadline allowed its Brazilian suppliers to continue deforesting in the Cerrado. This report assesses Cargill’s current deforestation risks in Brazil’s soy supply chain, given recent …
BlackRock’s recent statement that it is engaging with palm oil companies to better understand the industry’s challenges related to biodiversity and deforestation marked the first public acknowledgement from the firm of ESG risks associated with this sector. “Our engagements were part of an ongoing, multi-year effort to further our understanding of, and encourage companies to …
Environmental finance firm Sustainable Investment Management (SIM) is launching a green bond initiative on the London Stock Exchange on July 4, 2019 for medium-sized farmers in an effort to reduce deforestation in the Cerrado, a large tropical savanna biome that covers more than 20 percent of Brazil and has seen high rates of deforestation since …
Institutional investors, asset managers, and other financial actors are increasingly considering certain climate-related risks and opportunities in their investment decisions. They have particularly focused on energy, fossil fuels, and pollution, but the significance of deforestation to climate change is becoming more relevant to the sector. Currently, and in the coming decades, investors have to grapple …
Similar to physical actors along commodity supply chains, investors are facing greater pressure to limit links to deforestation, a trend that could expose them to reputation risks. A recent report from Amazon Watch (for which CRR partner Profundo provided research on the downstream supply chain) highlights this growing risk. It argues for reform among investors …
