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World’s Leading Agri-Commodity Companies Deliver Roadmap to Reduce Emissions from Land Use Change

Posted: Nov 07, 2022 6 minute read GAR 40 views
  • The roadmap focuses on reducing emissions from land use change in the palm oil, soy and cattle sectors, while protecting global food systems and producer livelihoods.
  • It is the next step in a commitment set out at COP26 by leading agri-commodity companies that manage large global trade volumes in key agricultural commodities, including more than half of the global palm oil trade and Latin American soy exports.
  • The fourteen companies, who have significant influence over the agri-commodity supply chain, comprise of ADM, Amaggi, Bunge, Cargill, COFCO International, Golden Agri-Resources, JBS, Louis Dreyfus Company, Marfrig, Musim Mas, Olam International, Olam Food Ingredients (OFI), Viterra and Wilmar International.

Sharm el-Sheikh, 7 November 2022: Fourteen of the world’s leading agri-commodity companies have today set out a shared roadmap outlining how they will work towards reducing emissions from land use change.

Food and land use systems account for around a third of all greenhouse gas emissions and it is land use change, such as clearing forest to make way for farms, that drives these emissions. To address this critical issue, the CEOs of leading agri-commodity companies committed – at COP26 in Glasgow – to developing a shared roadmap focused on reducing emissions from land use change.

The Agriculture Sector Roadmap to 1.5°C, released at COP27 in Egypt, represents a sector-wide plan for addressing forest loss in supply chains and accelerating collaboration with others to achieve that goal.

The roadmap sets out sectoral plans for cattle, soy and palm oil – the production of which is a leading driver of forest loss – to ensure that actions concentrate on areas where they will have the most impact. It also outlines how signatories will engage and collaborate with other stakeholders, namely governments, supply chain actors and financial institutions, for wider support of the roadmap’s commitments. This includes strengthening policies and regulations and incentivising farmers and ranchers to protect natural resources.

Over the past year, the Tropical Forest Alliance, with support from the World Business Council for Sustainable Development, has facilitated the process for the agricultural commodity companies to develop the roadmap. It commits them to implement time-bound plans and report publicly on their progress towards the targets on an annual basis.

Jack Hurd, Executive Director, Tropical Forest Alliance, said: “The world relies on the roadmap’s fourteen signatories to feed a growing global population, while keeping climate goals in reach and ensuring sustainable livelihoods for farmers and ranchers. Fundamental change is required across the entire food system to support more sustainable production. Companies have already made significant progress, and this roadmap is the next part of that journey. It represents a major step forward for signatories in the fight against forest loss. However, the roadmap is one component of a much broader system: governments, the financial community, civil society organisations, and other food and agricultural supply chain stakeholders all have a key role to play in supporting the industry to meet its sustainable land-use commitments.”

Diane Holdorf, Executive Vice President Pathways, World Business Council for Sustainable Development, said: “For 9+ billion people to live well, within planetary boundaries by 2050, we must transform towards a regenerative and equitable food system that produces healthy, safe and nutritious food for all. Eliminating commodity-driven deforestation and conversion is a critical part of this. This roadmap demonstrates how agri-commodity companies are taking steps towards this goal. We have much more to do. WBCSD stands ready to support companies along the supply chain to accelerate actions consistent with a 1.5 degrees Celcius food pathway.”

The signatories’ CEOs wish to share the following comments about their commitments and progress: 

Wei Dong, CEO, COFCO International: “We congratulate TFA, WBCSD, the involved governments and other signatories for achieving this progress which represents a significant sector milestone in eliminating commodity-driven deforestation in line with a 1.5°C pathway.” 

Franky Oesman Widjaja, CEO, Golden Agri-Resources: “Golden Agri-Resources prides itself on being a leader in sustainable palm oil production and this roadmap extends our commitment towards helping the palm oil sector achieve the important 1.5°C target. We continue to strengthen our response to climate change through cross-industry agreements like this and are stepping up efforts to reduce our impact in line with our commitment to continuous improvement.”

Gilberto Tomazoni, Global CEO, JBS: “Humanity is facing two emergencies at the same time. We must face climate change while also increasing global food production to ensure food security. JBS understands its responsibility as the world’s largest food company to be part of the solution and therefore the need to partner with our value chain to accelerate and scale progress. To make the fastest progress in Brazil, the sector must focus on the key areas and drivers of forest clearing – the Amazon and illegal deforestation. In line with our 1.5 commitment, 2023 is a year of action to go further – together with private and public partners – to develop incentives and technical support for producers who are the key to the transition towards 2030 to end all deforestation.” 

Michael Gelchie, CEO, Louis Dreyfus Company: “Louis Dreyfus Company’s longstanding commitment to helping shape increasingly fair and sustainable food and agricultural production chains is grounded in a collaborative approach that seeks shared solutions to common challenges – including at landscape level. In this sense, we are working hand-in-hand with customers, suppliers, financial community partners, peers and other value chain stakeholders toward traceable, low carbon and deforestation-free supply chains, leveraging technologies with the potential to accelerate positive change, engaging in our own global operations and across supply chains, and putting farmers at the center of our efforts, as the heart of the food chain.”

Marcos A. Molina dos Santos, Chairman, Marfrig: “As one of the world’s leading agri-commodity companies, Marfrig recognizes the importance of collective action to address climate change. Our teams have been working diligently to address deforestation and human rights issues in our supply chains, and we welcome this sector-wide initiative.”

Sunny Verghese, Co-Founder and CEO, Olam Group: “Taking actions to protect our environments, safeguard farmer livelihoods and deliver a more food-secure future for all is fundamental to creating more transparent and sustainable agricultural production. Together industry has demonstrated its ability to make progress to reduce forest loss and land-use change. This roadmap underlines our continued commitment but greater collaboration between industry, financial institutions, governments and NGOs is needed to accelerate the changes that are required to tackle the environmental and social challenges we face.”

David Mattiske, CEO, Viterra: “Viterra is pleased to be involved in accelerating global efforts to reduce forest loss and limit global warming. Collective statements and actions, such as the roadmap, give us the best opportunity to drive meaningful changes to emissions and environmental sustainability. The roadmap aligns with our goal to eliminate deforestation in our supply chains and look after valuable and protected areas and continues the work we are already undertaking in this area. The structure and framework set out in the roadmap will allow us to finalise the capabilities we’ve already begun working on to achieve the ambition. We look forward to sharing our plans and progress.”

Mr Kuok Khoon Hong, CEO, Wilmar: “Wilmar is committed to a deforestation-free supply chain and emissions reduction business trajectory. This builds upon ongoing efforts and existing industry-level commitments by the palm oil sector. It is our ambition to contribute to climate leadership through these emissions’ reduction initiatives and commitments”.

For more information: https://www.tropicalforestalliance.org/en/collective-action-agenda/cop27-roadmap/

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