Cargill’s New Policies Insufficient to Fully Mitigate Deforestation Risks in Brazil

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 …

28 Percent of Indonesia’s Palm Oil Landbank Is Stranded

In 2017, Chain Reaction Research (CRR) reported 6.1 million hectares (ha) of forest and peatland remained on oil palm concessions, land that can be considered “stranded assets.” This update discusses figures and trends in the palm oil industry since 2017 and argues that oil palm development on forest and peatland will remain economically unviable for …

Deforestation-Driven Reputation Risk Could Become Material for FMCGs

Many fast-moving consumer goods (FMCG) companies have publicly committed to a 2020 deadline to end deforestation in their supply chains. However, it is becoming increasingly clear that most FMCGs will not meet this deadline. NGO campaigns against individual FMCGs and benchmark studies that show the differences in implementation of zero-deforestation commitments indicate increasing reputation risks …

GPA’s (Casino Group) Beef Supply Chain Exposed to Deforestation Risks

Casino Group is a French multi-banner food retailer, with a controlling share in Grupo Pão de Açúcar (GPA) in Brazil. This report analyses GPA’s deforestation risk exposure based on beef samples collected through store visits. Chain Reaction Research (CRR) visited 50 GPA supermarkets in five Brazilian cities and inspected 500 randomly selected beef products. Data …

Brazilian State of Tocantins: A Hotspot for Cerrado Deforestation

The Brazilian state of Tocantins is the latest hotspot for soy- and cattle-related deforestation. In 2018, more land was cleared there than in any other state of the Brazilian Cerrado, a large tropical savanna biome that covers more than 20 percent of Brazil. Overall Cerrado deforestation rates have declined in recent years, but Tocantins continues …

Carrefour May Face Financial Risks from Deforestation-Linked Beef Sourcing in Brazil

Carrefour SA is a multinational food retailer that holds a majority share in Atacadão SA/Carrefour Brasil, the largest retailer in Brazil. Carrefour’s size makes it a major buyer of Brazilian beef and may expose it to deforestation risks, as cattle contributes to deforestation in the Brazilian Amazon. This report analyses Carrefour’s deforestation risk exposure based …

AAK Lags in Implementation of NDPE Best Practices

AAK is a vegetable oils producer, with its headquarters in Malmö, Sweden. The company has 20 production facilities worldwide, sales offices in more than 25 countries and a total workforce of 3,500 employees. In 2017, its revenue was equivalent to USD 3.2 billion in 2017. Within the world’s palm oil supply chain, AAK is positioned …

Foreign Farmland Investors in Brazil Linked to 423,000 Hectares of Deforestation

Brazil is one of the top target countries for farmland investment deals, because of the potential for high yields and productivity. The country has been an attractive destination for investors who buy farmland to diversify their portfolios and seek stable returns. Following the financial crisis of 2007 and 2008, institutional investors, including pension funds, university …

Deforestation Risk in Colombia: Beef and Dairy Sectors May Expose Investors

During the last two years, Colombia, the world’s second most biodiverse country, has seen rapidly increasing deforestation. This report discusses the political changes that led to this surge in deforestation. It then focuses on the cattle supply chain, the most important sector exposing investors to deforestation risk in Colombia. In this report, CRR discusses the economic …

USD 11B in Loans to Palm Oil Industry: ESG Issues May Create Indirect Risks for Bank Investors

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 …