PROJECT DESCRIPTION
BACKGROUND
The European market and its prevalent food system requires commodities, the production of which has a direct link to deforestation in Southeast Asia and Latin America. For Latin America, the ever-increasing surface of farmland for soymeal production (the husbandry sector) and cattle (beef production) drive most of the deforestation. In Southeast Asia, the driving force of deforestation is increased palm oil production for processed foods, along with the pulp and paper industry. The most effective mechanism for reducing pressure on forests is the sustainable transformation of influential market actors in sectors that define agricultural commodity production (soy, cattle, palm oil, paper and pulp) as well as the trade and investment in these sectors.
OBJECTIVES
The objectives of the Euro-Finance and Deforestation project are to:
- Reduce pressure on tropical forests in Brazil and Indonesia from soft commodities supply chains linked to the European market;
- Influence corporate decision-making at key company operations and European financial institutions, so as to shift their attention and impact to a more sustainable approach, leading to less deforestation; and
- Strengthen civil society organisations (CSOs), ensuring they have more knowledge and actionable information underpinning their advocacy to halt deforestation.
RESULTS
Expected results:
- Real-time deforestation monitoring reports used by CSOs and Aidenvironment to target key companies and European investors;
- Sustainability and financial risk analysis reports on key companies published and presented to European financial institutions;
- Deforestation risks integrated into the investment portfolios of 5 European financial institutions, and part of their resources shifted to sustainable business models, leading to less deforestation and fewer greenhouse gas emissions;
- 12 key companies made aware of deforestation issues resulting from their operations and supply chains, and acknowledging this negative impact, along with a (foreseen) policy shift of the company;
- Actionable information received by CSOs and the media on deforestation issues and the links with European companies and financial institutions; and
- 3 active networks of CSOs contributing to increased transparency of commodities supply chains and more effective implementation of zero-deforestation commitments by key companies.
