It has just announced that it will now ask its suppliers for detailed traceability and the exclusion of soybeans grown on land deforested or converted after January 1, 2020 in the Cerrado region in Brazil.
The LDC Group also urges the French government to speed up the implementation of a system to manage the risks of deforestation linked to soybean imports.
The company’s commitment is a good first step, but it is not enough, explains Klervi Le Guenic, activist of the French NGO Canopée.
“The LDC Group’s commitment is a very clear signal for soybean traders, but it must be followed by action. LDC must suspend trade relations with traders if they continue to be complicit in deforestation. We will be monitoring the company very closely as it is subject to French due diligence law and therefore has a legal obligation to prevent and mitigate any risk associated with deforestation in its supply chain. “In addition to this, you need to know more about it.
As part of its work through the French sustainability platform Duralim, LDC campaigned for greater sustainability of feed.
The group is also actively working to reduce the amount of soybean meal it uses in poultry feed and supports the development of alternative protein sources such as rapeseed and sunflower meal, as well as bean varieties. and peas. It is also seeking to source more and more ingredients such as soya locally, whether in France or in Europe.
Decoupling the beef from deforestation in Brazil In addition to this, you need to know more about it.
Separately today, Impact & Green Fund announced an investment in Marfrig, the Brazilian multinational corporation and one of the world’s largest animal protein producers, to expand the reach of livestock tracking in the Amazon and Cerrado, in particular in relation to its indirect suppliers, and to decouple its products from deforestation.
Cattle ranching is seen as one of the sectors with the greatest impact on forest loss in Brazil.
The Brazilian beef industry is dominated by a handful of meat processing companies. JBS, Marfrig and Minerva have the highest slaughter capacity among a large number of meat packers. The industry is characterized by increased and continued pressure from investors, policymakers and civil society on its role in deforestation, forest fires and human rights violations in the Brazilian Amazon, noted a report In addition to this, you need to know more about it.Of Chain Reaction Research (CRR) in December 2020.
The CRR found that Marfrig, as well as JBS and Minerva, are at greater risk of deforestation in their indirect supply chains than in their direct supply chains.
Marfrig said the 10-year US $ 30 million sustainability loan facility it signed with Stichting and green.fund (& Green) triggers the implementation of an environmental and social action plan .
The initiative is the result of coordinated efforts between & Green’s investment advisor, SAIL Ventures, Marfrig and IDH – The Sustainable Trade Initiative; the plan calls for engagement with indirect suppliers, traceability and mitigation of deforestation risks in the Amazon and Cerrado.
Gustavo Oubinha, Chief Investment Officer of SAIL Ventures for Brazil, commented on the robust nature of this loan facility: “We have a realistic plan in place, against which we can hold the company accountable, and we have a transparent mechanism in place to report successes and learnings to all stakeholders.In addition to this, you need to know more about it.
Marfrig will expand its deforestation monitoring system to include indirect suppliers, often located in more remote areas and vulnerable to deforestation – an ambition that has not been achieved in Brazil on a significant scale to date. The beef producer said indirect suppliers and, in particular, small-scale pastoralists will benefit from facilitating Marfrig’s access to finance and technical assistance to enable them to comply with its policies.
“With this transaction, Marfrig is sending a progressive market signal to the rest of the industry, especially at a time when deforestation is on the rise. In addition to this, you need to know more about it.The inclusion of indirect suppliers in the fight against illegal deforestation and wholesale transformation of the sector is essential to convince and enable farmers to switch to sustainable farming practices and environmental protection ”,said Daan Wensing, CEO of IDH.
“Eliminating deforestation throughout the supply chain, in the Amazon as in Cerrado, is a major challenge in the livestock sector in order to protect important forest areas of Mato Grosso and beyond”said Nanno Kleiterp, Chairman of the Board of & Green. “& Green is supporting Marfrig in this challenge, with an innovative financing mechanism that can serve as a model for investors to help large companies to sustainably transform their supply chains and contribute to global efforts to protect forests. ” In addition to this, you need to know more about it.