The Norwegian Government Pension Fund has slowly ramped up its response to deforestation concerns within its portfolio. The Fund has a history of addressing risks in sectors and companies that it considers prone to long-term risks. This included companies that face elevated risks from environmental, social, and governance (ESG) issues. Between 2012 and 2015, the …
On January 19, the Wall Street Journal reported that ADM was considering making a hostile takeover bid for Bunge similar to Glencore’s unsolicited bid in May 2017 that led to Glencore and Bunge agreeing to a “standstill” agreement that prevents Bunge from further unsolicited bids. J.P. Morgan analyst Ann Duignan reported that this agreement “ends …
Download Report Here (PDF) Summary There is risk of more expensive commercial financing, which accounts for around 53 percent of all rural financing. Some engagement from concerned investors may also address the weak ESG scores of their soy investees. Risk from more expensive barter-based financing is limited. The large-scale expansion of soybean cultivation in Brazil …
Download Report Here (PDF) Summary At least 49 percent of Brazil’s soy trade is covered by some type of zero- deforestation commitment. Consequently, soy producers involved in deforestation face increasing market access risk. Traders have more advanced ESG policies and lower risk exposure than producers. The large-scale expansion of soybean cultivation in Brazil has been …
Download Report Here (PDF) Download Report Here — Portuguese (PDF) Summary Bunge is the leading soy trader in Piauí Piauí continues to see high rates of Cerrado deforestation Bunge faces reputational and market risks. The global agribusiness and food company Bunge is among the largest players in Brazil’s soy supply chain. It is the leading …
Download Report Here (PDF) Summary BrasilAgro might face the risk of losing access to clients and an overvaluation of its land portfolio because of its sustainability impacts. Investors with forest policies might have most leverage through engagement with BrasilAgro’s parent company Cresud. BrasilAgro can course correct by addressing deforestation risks while improving returns via traceable …
Forest Heroes recently released a report, Green Cats: Scoring Palm Oil and Soy Companies on Forest Policies and Transparency, which analyzes the public pledges of 26 companies – 21 in the SE Asian palm oil market and five in the Latin American soy industry. It examines public disclosure on 18 different factors related to zero-deforestation …
JBS has canceled a USD 500 million IPO of processed food subsidiary JBS Foods International BV (JBSFI) planned for 2018. The IPO was initially scheduled to occur in H1 2017 before JBS experienced scandals regarding alleged insider trading, political bribery and meat safety corruption, deforestation and human rights concerns. Past reporting by Chain Reaction Research …
Download Report Here (PDF) — English Download Report Here (PDF) — Portuguese Following the financial crisis of 2007-2008, there has been a growing investor interest in farmland around the world. In Brazil, this interest has been most pronounced in the Cerrado, a large tropical savanna biome that covers more than 20 percent of the country. …
Download Report Here (PDF) — English Download Report Here (PDF) — Portuguese SLC Agrícola is Brazil’s largest publicly traded farming company, founded in 1977. It operates 15 large farms, spread across six Brazilian states – Mato Grosso, Goiás, Bahia, Piauí, Maranhão and Mato Grosso do Sul. This includes activities in the Matopiba region (comprising of …
