Projects

Archer Daniels Midland (ADM) is a large multinational trader and processor of agricultural commodities. In 2017, it generated USD 60.8 billion in revenue and USD 1.6 billion in net profit and employed over 31,000 people. ADM owns more than 30 silos in Brazil, as well 13 oilseeds processing plants. It also has operations in eight Brazilian ports. ADM sources a portion of its soybeans in the Cerrado, a vast biodiverse savannah region facing high rates of soy expansion and conversion of native vegetation. This could expose ADM to deforestation risks in its supply chain.

Approximately 18 percent of global greenhouse gas emissions comes from deforestation. Palm oil and soybeans are two of the four main crops driving deforestation, next to other environmental and social problems. Investor awareness regarding the material risks emerging in the palm oil sector has grown, but soyrelated risks are not yet widely recognised. This paper aims to compare the two supply chains and draw lessons for investors in dealing with companies in the soy supply chain.

The objective of this research project is to identify Japanese financial institutions with no record of financial relationships with Japanese companies engaged in coal development, fossil fuel ownership and nuclear power, while profiling those financial institutions (banks, asset managers and insurance companies) with highest exposure to fossil fuels and nuclear power in Japan.

Producers of food, detergents and personal care products buy 90% of global palm oil products and have been pushing for No Deforestation, No Peat and No Exploitation (NDPE) policies over the past years. However, the increasing role of private equity in this Fast-Moving Consumers Goods (FMCG) sector could jeopardize zero-deforestation efforts.The unsuccessful bid by Kraft Heinz on Unilever - an FMCG leader in sustainability - was a wake-up call.

In anticipation of the UN database on business enterprises involved in the Israeli settlement enterprise, this report identifies direct and indirect links between European businesses and selected economic sectors in Israeli settlements in the occupied Palestinian territory. These settlements are illegal under international law.

How can banks improve their identification and management of land governance risks, created by the companies they are financing? In this report, we analysed the normative framework around land governance; the application of the principle of Free, Prior and Informed Consent (FPIC) to a broader group of local (not necessarily indigenous) communities; and the present ESG risk management practices of Dutch banks. The recommendations for improving risk identification and management are relevant for all banks that strive to avoid becoming involved in landgrabbing practices.

Since 2013, companies, governments, investors and civil society have taken steps to stop deforestation, fires, peatland development, and mitigate labor and human rights risks in the palm oil sector. These transformative actions include the adoption of No Deforestation, No Peat, No Exploitation (NDPE) sourcing policies, sustainable management policies, government moratoria, stop work orders, and supply chain transparency. Chain Reaction Research reports that 74 percent of SE Asia’s palm oil refining capacity is now covered by these NDPE policies. However, deforestation continues and unsustainable palm oil continues to be produced, traded and consumed. Ten companies caused 75 percent of all palm oil-related deforestation in Indonesia in 2017. Together, these companies deforested 40,000 hectares (ha). This paper discusses how the use of related corporate entities and opaque ownership structures contributes to the ‘leakage’ of unsustainable palm oil to global markets.

Using the methodology developed by Profundo together with the civil society organisations collaborating in the Fair Finance Guide International network, the German Fair Finance Guide coalition assessed and ranked the responsible credit and investment policies of the main German banks for the third time. Profundo provided training and advice to support their assessment. Want to learn about Fair Finance Guide? Watch this video: https://youtu.be/zdks3jqmvuw

Shareholders and Loan Issuers Include International Financial Institutions with Palm Oil Policies. In total, 52 company groups operate as ‘leakage’ refiners. Based on this list of non-NDPE palm oil refiners – or leakage refiners - the financiers of 16 companies servicing leakage markets are analyzed in this paper.