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– [email protected] by e-mail
Thank You for your interest