May 27, 2015
The Supply Change team has directly engaged with more than 50 companies, and there are now 21 profiles publically available on Supply-Change.Org. The most recent additions represent a wide range of sectors from industrials, to personal and paper products manufacturers to food and drug retailers spread across Europe and North America.
These companies have made commitments to reduce deforestation from their palm oil, soy oil, fiber and packaging supply chains and have adopted certain criteria to measure the success of their commitments. Major corporations such as industrials company 3M and consumer staples firm Cargill, for example, have committed to engaging in Free, Prior, and Informed Consent, more commonly known as FPIC, which involves disclosing, discussing and securing buy-in from the local communities most directly affected by deforestation actions. About half of the companies publicly profiled on Supply-Change.Org incorporate FPIC into their commitments.
Preserving high-conservation value (HCV) areas is a high priority for many environmental groups and businesses such as personal products company Kimberly-Clark and pharmaceuticals firm Johnson & Johnson are responding by pledging to safeguard these areas within their supply chains. About two thirds of the corporations with active profiles on Supply-Change.Org have made HCV area protection commitments.
Visit Supply-Change.Org to view the latest additions including 3M, Aviko, Avon, Boots UK, Catalyst Paper, Delhaize Group, Dunkin’ Brands, Farm Frites, Grupo Bimbo, Kimberly-Clark, and Travis Perkins Group. We will continue to add new company profiles to Supply-Change.Org over the coming weeks and months.
Supply-Change.Org has recently expanded the scope of information within profiles.
Check out your profile before it goes public
If your company’s profile is featured on Supply-Change.Org but is not yet visible during the current beta phase (now through fall 2015), email us at firstname.lastname@example.org to preview your information before it is made public. Similarly, if your company is not listed on the platform and has a public commitment to sustainable palm, soy, timber & pulp, or cattle production or procurement, notify the Supply Change team so that a company profile can be developed on the platform.
Connect with the Supply Change team
The Supply Change team is on the road to share its new tool and initial findings (see report) with the sustainable commodity community. We look forward to connecting with you soon.
- Roundtable on Sustainable Palm Oil’s (RSPO) European Roundtable 2015, Schiphol, Amsterdam, June 3.
- Round Table for Responsible Soy’s Annual Conference RT10
Brussels, May 19-20.
- Business and Climate Summit, Paris, May 20-21.
- Innovation Forum: How business can tackle deforestation, Washington, D.C., April 14-15.
Shareholders of Bunge, one of the biggest agribusinesses in the world, did not approve a proposal to set quantitative, time-bound goals for reducing supply chain impacts on deforestation. The shareholders behind the proposal, Green Century Funds, believe that failing to act quickly to curb deforestation puts the company’s long-term value at risk. Bunge’s board actively opposed the proposal, arguing that it already has no-deforestation policies in place. Other companies have reacted differently to shareholder activism. In response to investor concerns, Archer Daniels Midland recently set a strong no-deforestation policy with specific commitments and a plan for implementation. Shareholder concerns about the long-term impact of environmental risks on growth have prompted Kellogg’s, ConAgra, Smuckers, Safeway, General Mills, and Target to set deforestation policies.
Read more at Grist.
Bunge’s Annual Meeting result
Room with a forest view
The hotel chain Mandarin Oriental is the latest target of campaigners to stop deforestation. The luxury hotel brand is owned by Jardine Matheson, which Forest Heroes says is responsible for destruction of forest habitat, including some critical to the endangered Sumatran elephant. The campaign claims Astra Agro Lestari, a palm oil company also owned by Jardine Matheson, has cleared 14,000 hectares of forests and 27,000 hectares of peatland since 2009. Astra Agro Lestari operates palm oil plantations on the Indonesian islands of Sumatra, Sulawesi and Kalimantan.
Read more from Forest Heroes.
The world’s largest banks and pension funds continue to finance deforestation through investments in land deals for crops like palm oil and rubber. Credit Suisse, Mitsubishi UFJ Securities and the Oversea-Chinese Banking Corporation recently organized a $400 million bond issue for Golden Agri-Resources (GAR), a palm oil company linked to an RSPO complaint. “Loans and bonds backing palm oil expansion have been steadily increasing over the past five years, amounting to tens of billions of dollars per year,” said Tom Picken of the Rainforest Action Network.
Read more at The Guardian
Failure to comply
Field checks confirmed that a supplier of palm oil giants Wilmar and Musim Mas is clearing High Carbon Stock (HCS) forests in Leuser, Indonesia despite the companies’ commitment to zero-deforestation. Leuser is the last place in the world where Sumatran tigers, elephants and orangutans share a habitat in the wild. The suppliers’ actions also violate the Indonesia Palm Oil Pledge (IPOP), a joint sustainability pact, which major palm oil companies entered into with the Indonesian Chamber of Commerce and Industry in September 2014.
Read more at Mongabay.
At a green investment summit in Jakarta, signatories to the IPOP called on the Indonesian government to codify elements of the pledge into law. Executives from Wilmar, Cargill and GAR also asked the government to change regulations that obstruct efforts to end deforestation in their supply chains. They identified the “abandoned land” policy that allows the state to take back land set aside by companies for conservation. "We're serious about producing palm sustainably, but we need strong regulations that enable us to protect high-carbon stock forests and high-conservation areas," Cargill Indonesia CEO Jean-Louis Guillot said.
Read more at Mongabay.
Letters from the Amazon
As a result of a high-profile pledge to limit deforestation in the Amazon, the world’s largest meat company, JBS, succeeded in reducing forest clearing from its supplier ranches. A comprehensive study published in the academic journal Conservation Letters found that the Brazilian company’s zero-deforestation commitment had a significant impact on compliance with environmental registries and deforestation rates. In 2015, less than 4% of JBS’s direct suppliers had recent deforestation on their ranches, compared to 36% before the commitment was announced in 2009.
Read more at Mongabay.
Leading experts on forest and climate issues will release the first draft of a scientific report on HCS Forests next month for public review. The report will provide a definition of HCS forests based on net GHG emissions avoided, threshold values for identifying acceptable areas for land conversion to oil palm, and a practical method for identifying HCS forests. The authors will also introduce guidance on how to accommodate local communities when implementing the HCS approach to land-use planning. The team of experts is led by John Raison, a former Chief Research Scientist at Australia’s Commonwealth Scientific and Industrial Research Organisation.
Read more from Sime Darby.
Do you support Supply Change?
Does your organization share Supply Change's ideals - corporate transparency, accountability, and recognition of nature's value in business decisions? Contact email@example.com to find out how to include your organization’s logo as a Supporting Organization.
We look forward to your continued feedback and engagement,
The Supply Change team