Beyond forests: traders face EU regulatory risks from soy expansion in Brazil
Soy traders are more exposed to the conversion of Brazil’s savannah and grassland habitats than they are to forests. As the EU considers including other ecosystems in its new due diligence legislation, Trase analysis reveals which traders face the biggest regulatory risks.
The business case for financial due diligence on deforestation risks
Deforestation is increasingly recognised as a material risk to banks and investors. Without due diligence to manage exposure to deforestation, financial institutions are in danger of regulatory enforcement, reputational damage and financial losses.
How supply chain ‘stickiness’ drives deforestation
Trase researchers have made a significant contribution to understanding how the stability or volatility of trading relations in commodity supply chains can affect deforestation. The findings could be used to inform the development of EU ‘due diligence’ legislation.
Brazilian soy and deforestation: challenges and opportunities
A Trase webinar to launch new data on soy production in Brazil discussed the EU ‘due diligence’ regulation, China’s role as key export market and a risk-based approach to reducing deforestation.
Connecting exports of Brazilian soy to deforestation
While the rate of deforestation and land conversion driven by the expansion of soy production in Brazil has slowed, the Amazon and Cerrado continue to be cleared despite zero-deforestation commitments made by soy traders, according to Trase data for 2019-2020. Land clearance in the Pampas grasslands is accelerating to meet growing demand for soy, including from China.
Cocoa exports drive deforestation in Côte d’Ivoire
Commodity traders Cargill, Olam, Barry Callebaut and Touton are exposed to high levels of deforestation in Côte d’Ivoire (Ivory Coast), where 2.4 million hectares of forest has been cleared in the past two decades primarily to produce cocoa for Europe’s chocolate manufacturers.
The challenges of investor engagement in Paraguay
New data on the deforestation risks associated with the beef and soy sector in Paraguay could help inform due diligence and engagement activities by banks and investors.
Can Indonesia continue to reduce palm oil deforestation?
Indonesia has achieved a dramatic reduction in deforestation linked to palm oil production, new research by Trase shows. But further measures will be needed to continue progress as China sources increasing amounts of palm oil with a higher deforestation risk.
Indonesia makes progress towards zero palm oil deforestation
Indonesian deforestation for palm oil has declined significantly, with the greatest falls occurring in supply chains governed by zero-deforestation commitments. However, rising palm oil prices and the growing role of traders who have lower levels of public transparency threaten to undermine progress.
Land governance is key to reducing deforestation
Agriculture is by far the most important cause of deforestation, yet cleared land is often not used to grow crops or raise livestock, according to new research. The findings have important implications for policymakers hoping to clean up supply chains for commodities such as soy, beef and palm oil.
Opportunities for deforestation-free sourcing in Argentina
Trase data can help soy traders in Argentina tackle deforestation risks and maintain access to export markets.
Argentina: The overlooked hub of South American soy
New Trase data on Argentina’s soy supply chain highlights how indirect soy supply in South America could be hiding deforestation in global supply chains.
Supporting France’s plan to increase transparency over deforestation
Trase worked with the French government to support the implementation of its strategy to end deforestation linked to imports of agricultural commodities.
How forest-friendly are ESG funds?
Over 400 ESG funds run by asset managers such as Blackrock, State Street and Northern Trust are financing commodity traders who are linked to deforestation, according to analysis by Trase Finance.
From risk hotspots to sustainability sweet spots
How Trase and SourceUp can power credible landscape-level sustainability action.
Germany prepares for EU law on deforestation-free imports
Companies in Germany will be better able to prepare for EU ‘due diligence’ legislation on deforestation-free supply chains due to Trase analysis that highlights hotspots of risk.
Approaches to assessing commodity-driven deforestation
An explanation of two different methods used by Trase and Pendrill et al (2022) to assess deforestation linked to agricultural commodity production.
How to measure a country’s imported tropical deforestation risk
Examining the merits of three approaches to analysing commodity-driven deforestation risk: direct trade, re-export-adjusted trade and consumption-based accounting.
Assessing Germany’s soy deforestation risk
A new Trase study finds that Germany is exposed to deforestation risk from Brazilian soy embedded in processed products and imported through intermediary countries.
EU urged to widen deforestation law
A narrow focus on protecting forests could increase pressure on other ecosystems in South America where most of the EU’s commodity-driven deforestation exposure is found.
Action needed to address indirect sourcing 'blindspot'
Traders, food manufacturers, retailers and governments must take action to reduce the deforestation risks associated with indirect – and often unknown – sources of commodities, according to new research.
Understanding soy deforestation risk in leather products
A group of luxury fashion brands asked Trase to identify hotspots of deforestation risk in their supply chains for leather – not from cattle farmed in high-risk areas, but from soy present in animal feed.
Strengthening the EU regulation on deforestation-free products
Implementation of the draft regulation could be improved by using robust risk assessment to target action on areas threatened most by deforestation.
Chocolate companies face deforestation risks from unknown cocoa supplies
A lack of transparency about deforestation in the cocoa supply chain is creating reputational and regulatory risks for commodity traders and chocolate manufacturers.
Deforestation-risk green finance – more khaki than emerald
Trase assesses the pros and cons of recent moves into green finance by commodity traders.
Moving beyond commitments : How to start eliminating deforestation from investor portfolios
Investors need to understand deforestation-risk exposure in their portfolios to inform effective engagement activities and deliver on COP26 pledges.
Trase enhances life cycle assessment with ‘commodity supply mix’
New research by Trase assists LCA practitioners by providing more regionally relevant data on the environmental impacts of agricultural commodities.
Missing deforestation-risk products undermine EU’s due diligence proposal
Trase analysis of the EU’s draft due diligence regulation finds that the proposal fails to account for more than half of the bloc’s deforestation risk from imports of soy due to its exclusion of soy used in animal feed.
COP26 must commit to eliminating deforestation
World leaders attending the UN climate talks in Glasgow must commit to stopping commodity-driven deforestation if they are to prevent climate catastrophe.
Storebrand Asset Management deforestation risk assessment
Trase worked with Storebrand Asset Management to demonstrate how investors can identify and assess deforestation risk in their portfolios to inform engagement and divestment activities.
Trase highlights UK’s role in financing deforestation
UK financiers provided over £40 billion to companies at risk of causing deforestation in Brazil and Indonesia through their trade in beef, soy and palm oil, according to analysis by Trase Finance.
Trase launches beef app to empower consumers in Brazil
Trase has launched a new smartphone app that informs supermarket customers in Brazil about the environmental and social performance of the meat products that they purchase.
Exploring the investor types with most significant levels of deforestation risk exposure
New data on deforestation risk exposure builds the case for investors elevating deforestation in their risk management priorities.
High deforestation risk for beef from the Paraguayan Chaco
None of Paraguay’s beef exports in 2019 were covered by a zero-deforestation commitment, despite high deforestation risk in the Dry Chaco.
Soy deforestation risk in Paraguay continues despite decline
Countries importing soy produced in Paraguay’s Atlantic Forest biome are still exposed to illegal deforestation risk, despite a large fall in the rate of deforestation.
Trase data highlights EU's role in deforestation
Trase research is an important part of a new WWF report into tropical deforestation associated with EU agricultural commodity imports.
Mapping cocoa exports from Côte d’Ivoire and Ghana
New Trase data reveals the companies which export cocoa from Côte d'Ivoire and Ghana, and the countries which import it.
Indonesia's pulp exports linked to widespread fires on peatlands
Over 40% of Indonesia’s pulpwood is grown on drained peatlands, causing significant carbon emissions and health risks from catastrophic fires.
Indonesia pulp sector’s progress on deforestation hangs in the balance
Despite declining rates of deforestation, past clearing and future supply risks pose ongoing challenges for the Indonesian pulp sector’s sustainability.
Bringing a new level of transparency to Indonesia's pulp exports
The Indonesian pulp sector has reduced deforestation, but remains dependent on carbon-intensive peatland plantations.
How Brazil’s soy traders can identify climate risks
New research combining Trase data and climate change projections could help soy traders understand and manage their risk exposure.
Creating a sustainable jurisdiction for agriculture and conservation
The case of the Produce, Conserve, Include (PCI) initiative in Mato Grosso, Brazil.
Investors welcome ‘powerful tool’ to manage deforestation risk
Investors have a powerful new tool to identify hotspots of deforestation risk in their portfolios, improve how they measure ESG performance and create innovative green products.
How financial institutions are exposed to deforestation risks
Financial institutions can be directly or indirectly exposed to deforestation risks by their financing of forest risk commodity traders.
How data helps investors target deforestation risk management
New data on deforestation risk exposure helps investors identify the risk hotspots in their portfolios, enabling more focused risk management efforts.
Minerva shareholder data illustrates improved deforestation financing transparency
Trase data can help tackle global extinction crisis
As shown on the BBC’s Extinction: The Facts, Trase is enabling targeted action that is making a real difference. Greater regulatory pressure and private sector leadership is now needed.
Spotlight on Brazilian soy exports to France
High concentration of soy-related deforestation-risk in a handful of companies and municipalities offers an opportunity for a targeted approach by France and other European countries.
Delivering transparency for sustainable agriculture in Paraguay
Paraguay’s Chaco region has one of the highest rates of deforestation in the world. Trase’s research into the soy and beef supply chain is helping to bring much-needed transparency.
How to protect Colombia's forests as global demand for coffee soars
Trase’s new Colombian coffee supply chain data could play a valuable role in managing future deforestation risks from coffee expansion posed by climate change and international demand.
China’s imported deforestation risk from Brazilian beef imports
Through targeted engagement with a handful of traders and local governments, China could significantly reduce risks associated with its Brazilian beef imports.
A breakthrough in carbon footprinting for agricultural commodities
New study provides detailed breakdown of emissions sources for Brazilian soy exports, with relevance for other agricultural commodities as well as climate policy discussions.
Live cattle have highest deforestation risk of Brazil's exported cattle products
Indirect land-use change deforestation linked to soy threatens prospects for sustainable intensification in Brazil
Despite the success of the Amazon Soy Moratorium in reducing direct conversion of forest to soy, the crop is indirectly linked to deforestation via the displacement of cattle pasture.
Low vertical integration of dominate palm oil traders brings transparency challenge
New entrants challenge ABCD traders in Paraguayan soy export trade
The major "ABCD” multinational grain traders – ADM, Bunge, Cargill and Louis Dreyfus – dominated the Paraguayan export market in 2014, handling more than two thirds of the country’s soy exports that year (64%).
Lifting of import bans increases deforestation risk
US companies’ exposure to deforestation risk is set to increase steeply after the US government lifted restrictions on imports of fresh and frozen beef from Brazil in March 2020.
Slaughterhouse approvals could increase China’s beef deforestation risk exposure in Brazil
Carbon emissions from tropical deforestation largely driven by consumption in Europe and China
New study finds between 29% and 39% of all CO2 emissions related to tropical deforestation were linked to exported agricultural and forestry commodities.