Since the palm oil sector is capital intensive and needs long-term financing, palm oil companies depend on bank loans. By investing in banks that provide loans to the palm oil industry, investors may indirectly face deforestation-related risks. These risks are magnified when a bank’s exposure to palm oil companies with sustainability risks is relatively high …
This report builds on Chain Reaction Research’s (CRR) company profile on BrasilAgro, published in November 2017. It showed that from 2012 to 2017, BrasilAgro had cleared 21,690 ha of native vegetation in the Brazilian Cerrado. BrasilAgro has faced the risk of losing clients with zero-deforestation commitments, as well as an overvaluation of its land portfolio. …
Large palm oil refiners have adopted sourcing policies that require their suppliers to refrain from clearing forests, using peatland or exploiting people. A November 2017 analysis by Chain Reaction Research showed that 74 percent of Indonesian and Malaysian refining capacity is covered by such No Deforestation, No Peat, No Exploitation (NDPE) policies. This report looks …
This report, which builds on the company profile on SLC Agrícola published by Chain Reaction Research in September 2017, reviews the company’s sustainability and business risks in the last year. The initial report showed that from 2011 to 2017, SLC Agrícola cleared 39,887 ha of land of its original vegetation, of which 30,000 ha was …
Cencosud is a multi-brand retailer in South America, headquartered in Chile. The company is the fourth largest supermarket chain in Brazil, after Carrefour, GPA (Pão de Açúcar) and Walmart. Cencosud’s position in the beef supply chain may expose it to deforestation risks through the beef it sources from slaughterhouses, as cattle is a major driver …
The Cerrado biome, covering over 20 percent of Brazil’s terrain, is a savannah region with high biodiversity and an important function for the water systems in Brazil. The region has experienced significant soy expansion during the last two decades. Soy expansion has been most prevalent in Matopiba, consisting of the states of Maranhão, Tocantins, Piauí …
Archer Daniels Midland (ADM) is a large multinational trader and processor of agricultural commodities. In 2017, it generated USD 60.8 billion in revenue and USD 1.6 billion in net profit and employed over 31,000 people. ADM owns more than 30 silos in Brazil, as well 13 oilseeds processing plants. It also has operations in eight …
Approximately 18 percent of global greenhouse gas emissions comes from deforestation. Palm oil and soybeans are two of the four main crops driving deforestation, next to other environmental and social problems. Investor awareness regarding the material risks emerging in the palm oil sector has grown, but soy-related risks are not yet widely recognised. This paper …
Cattle ranching in Brazil, home to the world’s second largest herd, remains a major cause of deforestation. This trend continues despite meatpackers and retailers having made commitments to deforestation-free supply chains in the last ten years. This report describes the economic role of the cattle sector in Brazil, key supply chain actors, their role in …
Progress achieved by many palm oil refiners and some FMCG companies may be weakened by changes in the landscape of the FMCG/downstream industry. Download PDF here: Consolidation Report Final July 23 2018 In 2017, Chain Reaction Research (CRR) calculated that 74 percent of palm oil refinery capacity in SE Asia applied No Deforestation, No Peat, …
