June 26, 2019

Dear Colleagues,

Supply Change released a new report last week: Targeting Zero Deforestation: Company Progress on Commitments that Count, 2019. The report is part of a collaboration with Ceres, which has released a companion investor brief Out on a Limb: The State of Corporate No-Deforestation Commitments & Reporting Indicators that Count.

In Targeting Zero Deforestation, Supply Change takes a deeper look at companies’ commitments to achieve zero deforestation and how investors can leverage their influence to nudge companies to disclose commitments, actions, and progress, more transparently.

Moreover only 21 of the companies with zero deforestation commitments disclosed quantitative progress towards reaching their commitments. These findings suggest hundreds of companies are falling short in meeting their zero deforestation targets.

These shortcomings present a significant risk for investors as deforestation in supply chains can result in serious environmental and financial consequences as well as tarnishing the reputations for those involved. Ceres’ companion brief Out on a Limb, offers recommendations that investors can use for engagement with companies and the specific actions companies are taking against deforestation.

Additionally, The Accountability Framework recently launched a new framework aiming to provide companies with the necessary norms and guidance to make strong deforestation commitments, implement policies across supply chains and monitor on-the-ground impacts to make better assessments.

Companies will have a lot of work to do in the years ahead, however with continued reporting from Supply Change and new framework released by AFi, companies may be able to find ways of setting commitments that are more meaningful in the eyes of civil society.

More stories about changing supply chains are summarized below, so keep reading!

- The Supply Change team 




Upcoming Events and Updates

Out On a Limb Public Webinar
June 26, 10:00 am ET | Speakers: Forest Trends, CDP, Ceres
This webinar explores the findings from Supply Change’s Targeting Zero Deforestation report by Supply Change and Ceres’ companion brief, Out on a Limb. The recording will be posted here.

Planning for Success: 2020 and Beyond
Speakers: AFi, and Forest Trends
Introducing a new collaboration between Supply Change & AFi, this webinar will set the scene for challenges around reporting commitments, the challenges companies are having along the way and planning for success. The webinar may feature a potential corporate guest! Additional details coming soon.



Recent News

Uncertified Palm Oil Producers Pay a High Price
Last month, Climate Advisers and the S-Network Global Indexes launched the Better Palm Oil Index (Ticker: CABPLM). The index is comprised of companies that are members of the Roundtable on Sustainable Palm Oil (RSPO), are publicly traded, and are major palm oil producers. Research on companies in the index also revealed that palm oil companies that are members of the RSPO have outperformed non-members by nearly 25 percent since the end of 2012.
Learn more from Ecosystem Marketplace.

Companies Spill the (Soy) Beans
Six members of the World Business Council For Sustainable Development (WBCSD)’s Soft Commodities Forum (SCF) – Archer Daniels Midland, Bunge, Cargill, COFCO International, Glencore Agriculture and Louis Dreyfus Company – unveiled new public reports on soy they source from Brazil’s Cerrado biome. These companies are in the process of identifying opportunities to restore native vegetation in the Cerrado and developing definitions, financial incentives, and outlines of required actions. They will continue to report on soy sourcing every six months.
Learn more from WBCSD.

Corned Beef Cornered by Amazon Deforestation Claims 
An investigation by environmental group, Earthsight, found that many of the biggest supermarket chains operating in the United Kingdom (including Sainsbury’s, ASDA, Morrisons, and Lidl) are importing corned beef that may have contributed to illegal deforestation in the Amazon. These retailers all import beef from JBS, the largest beef producer in Brazil. Despite having made commitments to eliminate deforestation in its supply chain, JBS has been implicated in multiple corruption and illegal deforestation scandals over the last decade. Many activists and scientists are hoping that increased pressure from European companies will incentivize a greater push to regulate deforestation and increase indigenous rights in the cattle sector.
Learn more from Mongabay.

Quanti(s)fying Land Use Change Emissions
In recent months Quantis released a new methodology - Accounting for Natural Climate Solutions: Guidance for Measuring GHG Emissions from Land, Forests, and Soils across the Supply Chain – which companies can use to measure greenhouse gas emissions (GHGs). The methodology is expected to promote greater consistency in accounting for emissions from land, forests and soils across supply chains. Eleven pilot projects were implemented with a number of NGOs, scientists, companies and stakeholders (including Braskem, IKEA, PMI, General Mills, CDP, WWF and others) and targeted supply chain strategy, commodity footprints, soil carbon, and bio-based products. The report represents a collective effort to address the gap in accounting for GHGs across the corporate sector. 
Learn more from Quantis.

Forest Trends CDP WWF GEF UNEP