This metric is based on the" "Content 304-2 Significant impacts of activities, products and services on biodiversity" "of the Global Reporting Initiative (GRI)
We know that the major buyers of palm oil, soybean and other resources from over-exploited and devastated tropical regions such as the Amazon and Southeast Asia are the main European manufacturers and distributors for the production of their processed products and animal feed.
The least that we could expect as consumers of their products is that companies know the practices of their raw material suppliers, report on their possible impacts on ecosystems and establish a minimum of measures to remedy them.
With this metric, we do not require companies to specify their direct link, for example, with soy suppliers related to deforestation and illegal burning of forests in the Amazon (that if such link does not exist and is communicated, it would be an achievement and differentiating element within the sector, worthy of note in style.). What we ask is that they at least address and explain in their reports the most pressing problems associated with Biodiversity within their value chain, among which we highlight:
- The degradation, deforestation and conversion of natural ecosystems, especially in tropical regions, due to the expansion and industrial production of soybeans, intensive livestock, the timber industry and the overexploitation of other resources such as minerals, especially in the Amazon.
- Deforestation caused by the cultivation of palm oil especially in Indonesia and Malaysia.
- Agricultural expansion, both for livestock and animal feed, is a major driver of deforestation and is also responsible for approximately 60% of direct global greenhouse gas emissions from agriculture
- The loss of marine biodiversity due to overfishing and destructive harvesting systems
What we expect with this metric is that companies recognise and explain the impacts on Biodiversity associated with their activity within their long supply chains and in particular their sourcing of raw materials such as soy, palm oil, meat, paper and wood, fisheries, aquaculture, pesticide use and the impact of their activity on agriculture.
We scored YES if the company describes at least one of the above impacts.
This information can be found in any of the following reports published on the companies' websites:
- Annual Report
- Corporate Social Responsibility Report
- Sustainability Report
- Environmental Report
- Carbon Footprint Report
- Statement of Non-Financial Information (NFI)