THE FOREST FOOTPRINT DISCLOSURE PROJECT

General Presentation Autumn 2009

Food and Drink Innovation Network

January 2010

Tracey Campbell, Director

Agriculture as a Deforestation Driver• Demand for food (particularly

meat) and manufactured goods rises with population and per capita income

• Increase in supply of some key primary products focused on territories currently or recently forested.

• ‘Forest Risk Commodities’:

Cattle, Palm Oil, SoyTimber & Biofuels

Aims of Forest Footprint Disclosure

• Highlight the involvement of a company’s extended supply chain with FRCs and thus deforestation

• Review the state of these supply chains annually using original data from an annual disclosure request

• Provide a platform for review of trends and opportunities to improve the sustainability process

• Deliver valuation and risk information to investors

TO REDUCE THE UNSUSTAINABLE GLOBAL FOREST FOOTPRINT

Copenhagen- Key FRC Issues• Raised awareness of

carbon life cycle in supply chains further– Livestock and source of

pasture both under increasing scrutiny

– Land use change for plantations incorporated into mandated biofuel calculations as well as food usage

• Positive pricing for standing forests– Land bank usage

opportunity costs changing

– Alternative finance becoming available may make degraded land more viable

– Change in location of supply sources

The Brazilian Cattle Industry • Largest commercial beef

herd in the world• Largest supplier of hides to

the leather industry in the world

• Extensive cattle ranching , often on cleared forest areas, has been common

• Double-damage to the carbon cycle: loss of trees and methane from cows

• Perverse incentives are subsidising this change until recently

2009: a Year of Great Change• Two major reports published

– ‘Time to Pay the Bill’ –Amigos da Terra, April– ‘Slaughtering the Amazon’- Greenpeace, May

• June 12th:local supermarkets announced they would stop selling meat sourced from suspect ranches

• June: Marfrig and Bertin (meatpackers) commit to disowning ranches associated with slave labour and deforestation

• July: Nike, adidas, Timberland and C&J Clark give suppliers 12 months to put in place necessary traceability schemes

• Federal Public Prosecutor issues >$1bn of lawsuits to ensure ranchers and meatpackers comply with environmental, land tenure and labour laws

Palm Oil• ‘Sunk cost’ of deforestation to be incorporated into

carbon calculations- exact metrics unclear• Land banks may be affected• New territories without deforestation baggage may

gain in attraction

Copenhagen’s Legacy?• Supranational process too slow – increasing

likelihood of national regulation patchwork driven by local interests

• Voluntary roundtables not keeping up with carbon economy mindset

• Companies are ‘doing it for themselves’ despite absence of a level playing field

• Forest funding is more clearly identified but no channel to deliver it established (yet)

FFD Annual Review Launch

• When? 10th February 2010• Time? 10.30 am-12.30 pm• Where? One Moorgate Place, London EC2• Interested? Registration is required so please

contact– Tracey Campbell at this conference– C.mackenzie@globalcanopy.org by e-mail

Thank You for your interest