Projects

Profundo previously calculated the total costs of damage linked to the climate devastating cash flows from Rabobank to Brazil. In a follow-up study, Profundo calculated which damage claim accrues directly to Rabobank. This shows that Rabobank is responsible for at least 9.5 billion euros of the total damage, and in the worst-case scenario that responsibility even rises to 61 billion euros. When calculating Rabobank's share, Profundo looked at a.o. the profit made and the knowledge of the chain players involved.

Deforestation emissions from raw materials imported into the United States present material financial risks for investors and concerns for importing companies. Scope 3 emissions from deforestation for the production of commodities imported to the U.S. totaled 21.24 mtCO2 in 2019. The total value at risk for imported forest-risk commodity deforestation emissions ranges from USD 7.28 billion to USD 114.98 billion. Maintaining a business-as-usual approach to imported forest risk commodities (FRCs) leaves investors in the dark regarding future financial risk, potentially exposing their broader portfolios to harsher impacts from climate change.

Cambodian garment sector workers’ conditions are declining. A study with CNV International's Fair Work Monitor, in collaboration with Cambodian unions, and written by Profundo shows a further decline in the Cambodian garment sector workers' conditions since the 2022 survey. The average wage of Cambodian garment workers is $260, while average costs are $500. About 40% of surveyed workers have taken secondary jobs due to low wages and frequent overtime. 77% of workers borrow money for daily expenses, implying a lack of living wages. This shows action by brands and governments is needed. Bridging living cost gaps, and addressing the gender pay gap is vital. Stakeholder cooperation, including employers, government, trade unions, and buyers, is essential for sector recovery and to assure living wages for the Cambodian sector workers.

Profundo analysed financial institutions headquartered and registered in Ireland financing agribusinesses and fossil fuel industries. The study reveals that Ireland is a significant channel for global institutional investment in fossils fuels and industrial agriculture, with €5.7 billion in climate-harming investment to the Global South. The report also reveals that as of January this year Irish financial institutions held €12.1 million of investments in fossils fuels. Of this figure the Ireland Strategic Investment Fund (ISIF) held €10.4 million, mostly in bonds issued by Chinese electric utility company State Grid Corporation of China. It is by design that Ireland acts as a channel for global institutional investors to profit from their fossil fuel investments in the Global South. Ireland needs to address this and ensure policy coherence.

On behalf of WWF Germany and IUCN NL Profundo developed a benchmarking report which compares the European Feed Manufacturers' Federation Soy Sourcing Guidelines (FEFAC SSG) and 20 Voluntary Standard Systems (VSS) against a set of 49 basic provisions and 11 additional requirements that cover the most important sustainability topics in the soy industry. Assessment criteria focus on deforestation and ecosystem conversion, landscapes and biodiversity, social issues and human rights, traceability, and governance and assurance. They are based on EU Deforestation Regulation (EUDR), Accountability Framework Initiative (AFi) Core Principles, the upcoming EU Corporate Sustainability Due Diligence Directive (CSDDD), FEFAC SSG, and WWF conservation agenda. Almost all standards have become more robust since 2019, when the previous benchmark was published. 20 of them already go beyond legality in their no-deforestation requirements, and 17 also cover other ecosystems beyond forests. Despite the general improvement in all standards, independent multi-stakeholder initiatives outperform corporate schemes across an array of environmental and social criteria and are better prepared for the EUDR. The report also showed that voluntary standards are part of a bigger toolbox for companies. They can be used for compliance with legislative regulations, but in fact offer so much more: comprehensive ecological and social requirement that can help companies to take on their responsibility for understanding their supply chains and making them more sustainable for the benefit of our societies and the environment. Based on the conversations with the standard holders, we already see that those who have an ambition to become EUDR-compliant are actively adapting their requirements and implementation guidelines. To better reflect this process and its outcomes, this benchmark will be updated on the EUDR-readiness in the first half of 2024.

A review of investors’ and companies’ climate commitments showed that 11 of 12 investors and 25 of 28 companies do not include plastics in their climate commitments. Also, there is no transparency on how these companies and investors plan to mitigate the climate impacts of their value chains. Moreover, Climate target-setting guidance and frameworks often omit the greenhouse gas emissions from plastics and, in some cases, incentivise continued plastics growth. Plastic is a major contributor to pollution, climate change and health issues. Therefore, it is important these companies and investors act upon their climate commitments and include plans on mitigating plastics in their policies. This report includes 10 First Principles for Incorporating Plastics into Climate Commitments to help them out.

This research assessed the corporate social responsibility (CSR) policies of ten Netherlands-based vegetable seed companies against fundamental, internationally accepted human and labour rights guidelines. The results show that corporate efforts are falling short in their adequacy to prevent and mitigate labour rights breaches in the supply chain, such as living wages, child labour, and women’s rights. Several of the assessed seed companies have no CSR policies in place. Companies with a CSR policy in place still fall short of describing how those commitments are brought into practice. There are close trade links between the Indian and Dutch vegetable seed sectors, consisting of both local companies and subsidiaries of multinational businesses. India plays an important role in the trialling and propagation of hybrid vegetable seeds due to favourable growing conditions, a large market, and cheap labour for the intense manual work. Important seeds traded with the Netherlands include tomatoes, sweet pepper, and cucumber.

Dutch Rabobank financed sectors that contribute to deforestation and environmental destruction in Brazil on a large scale. In the period 2000-2022, Rabobank provided nearly $10 billion in loans and other financial services to companies in the beef, soy and pulp and paper sectors in Brazil. That yielded at least €700 million in profit. This is offset by enormous damage to climate, nature and health of at least €66 billion.