A Deforestation Free Path for Beef and Soy. November 2017

Transcription

1 A Deforestation Free Path for Beef and Soy November 2017

2 Initiative Collaboration for Forests and Agriculture (CFA) The Collaboration for Forests and Agriculture supports companies to align, develop and implement deforestation-free commitments for beef and soy commitments in the Brazilian Amazon and Cerrado and the Gran Chaco in Argentina and Paraguay by improving decisionsupport tools, enhancing information transparency and unlocking financial incentives.

3 Strategic Partners Technical Support + Huge Network

4 CFA = CFA aims to help eliminate deforestation resulting from the expansion of soy and beef in the Amazon, Cerrado and Chaco CFA is developing the infrastructure to help catalyze the development and implementation of deforestation-free commitments CFA is helping reduce complexities and lower costs associated with rolling out commitments in the Amazon, Cerrado and Chaco CFA is working in complement with other global and regional initiatives CFA CFA is NOT a certification or labeling scheme CFA is NOT a new roundtable or multi-stakeholder group CFA is NOT working directly on public policy CFA is NOT implementing pilot projects on the ground CFA is NOT working directly with individual producers

5 What benefits will CFA deliver? Harmonized definition of deforestation-free Support for an implementation framework Technical tools for decision support Improved risk management Business cases for implementation Improved supply chain monitoring and traceability Support for financial mechanisms that increase capital flows

6 Call for Action How to engage in the CFA process 1. Support CFA; 2. Participate in the co-creation of a D-Free Protocol and ask suppliers to also join; 3. Hold suppliers accountable to implement the D-Free Protocol; 4. Develop an implementation work plan: Validate, Measure and Monitor your supply chain. Progressively map and understand the supply chain, through direct and indirect suppliers to the producers or producing regions Progressively increase the proportion of suppliers with criteria compatible with their own for purchase or production of raw materials (in % of suppliers/regions with compatible policies) Progressively increase the proportion of purchasing, production or financing of soy or cattle products free from conversion

7 Call for Action: Co-creation of a comprehensive and common D-Free Protocol CFA invites you to take part in the process of developing key definitions, deadlines, cut-off dates and other biome-specific elements in a D-Free Protocol to fulfill commitments in the Amazon and Cerrado September November 2017: comprehensive stakeholder meetings (packers, traders, retailers, NGOs) to collect inputs for a harmonized, clear and effective D-free protocol for the Amazon and Cerrado (Chaco will be added later) December 2017: Review draft D-Free protocol with inputs from stakeholders December 2017 February 2018: Collect comments and suggestions on a new draft; hold workshop and meetings to finalize draft of D-Free protocol March 2018: Release final draft of D-Free protocol for public comments April 2018: Supply chain stakeholders establish/refine formal commitments based on new D-Free common protocol By December 2018: companies present an action plan to implement D-Free common protocol helped by CFA

8 Aspirational Goal for Brazil Cut-off Dates Companies adopt and implement commitments that eliminate deforestation and the loss of native vegetation from the production, sourcing and financing of beef and soy products originating from the Brazilian Amazon and Cerrado and the Gran Chaco in Argentina and Paraguay. 2008: deforestation of primary forest in Amazon biome cleared for soy Soy Moratorium 2009: deforestation of primary forest in Amazon biome cleared in properties with cattle production Beef Agreement 2017: all other areas of natural vegetation Zero Conversion All suppliers considered in compliance, as of date of agreement. Mechanism developed to re-engage suppliers and help establish options for brining blocked suppliers back into compliance

9 Key Elements of the CFA D-Free Protocol What is the Scope: sourcing, producing and financing soy and cattle supply chains from the Brazilian Amazon and Cerrado and in the Paraguayan and Argentine Chaco. What is Protected: All primary and secondary natural vegetation, whether forest or not, remaining in 2017 in the target regions. What is Deforestation: Complete transformation of natural vegetation to other uses. What are the Cut-off dates: 2008 for the Amazon biome cleared for soy; 2009 for the Amazon biome cleared for beef and from now on, for all other areas of natural vegetation in Cerrado and Amazon biome (Chaco to be added soon). What is the Deadline: develop implementation action plan in how to Validate, Measure and Monitor supply chains by December 2018 with help from CFA

10 Why this is important? Driven by deforestation, shifting climates globally and locally will depress agricultural productivity in Latin America Supply chain stakeholders have an opportunity to mitigate the risks and leverage growing demand for sustainable food that people can feel good about eating Disparate definitions and approaches efforts are slowing progress By aligning strategies and providing support tools, we can help you move forward faster

11 Growing Population, Growing Demand, Growing Pressure (WWF, 2016)

12 Deforestation 8 football fields every 10 seconds

13 2 nd largest source of greenhouse gas emissions

14 Deforestation & Impacts Clearing = reduce rainfall + prolong droughts + increase temperatures + more frequent fires (Salazar & et al, 2015) Conversion of Cerrado = reduce water cycle by over 20% + increase heat by 1.6 C. In Matopiba, a severe drought in 2016 reduced soy productivity up to 50% (Salazar & et al, 2015) (Oliveira & et al, 2005) Amazon has warmed about 1 C over the last 60 years, and total deforestation is reaching 20% of the forested area (Coe & et al, 2016)

15 Climate Change Will Impede Ag Production Across Latin America (World Bank, 2010)

16 Deforestation Poses Reputational Risks According to an analysis of 2016 CDP disclosures of over 200 companies: 81% of companies in the Agricultural Production sector have experienced impacts related to forest-risk commodities that have resulted in substantive changes to operations, revenue or expenditure in the past five years. (CDP, 2017)

17 And Financial Risks According to JBS analysis: 10 trucks (120 tons) of illegal meat = R$60 Million or US$17 Million fine

18 . Deforestation fronts 80% of deforestation likely to happen in 11 places

19 3 Biomes represent almost half of the world s deforestation Deforestation in South America may represents up to 43% of the total World s deforestation projection (WWF, 2015)

20 The 70% decline in deforestation from 2004 to 2012 in the Brazilian Amazon suggests that it is possible to manage the advance of a vast agricultural frontier (Nepstad, et al., 2014). Soy and beef production increased in the Legal Amazon as deforestation dropped Deforestation-free commitments, such as the Amazon Soy Moratorium, have proven to be highly effective (Gibbs, Rausch, Munger, Schelly, & Morton, 2015)

21 Progress in the Amazon is at risk & Cerrado does not show any progress More than 750,000 km² or 18% of the Brazilian Amazon and 825,000 km² or 41% of the Cerrado had already been deforested. km Amazon & Cerrado rates of conversion after Soy Moratorium & Cattle agreement Source: Ministry of the Environment, Brazil, 2015; Noojipady et al., 2017; Ometto, Aguiar, & Martinelli, 2011) Since 2011, summing Amazon and Cerrado we keeping loosing nearly one Hawaii or more than half of Alagoas State per year In Cerrado, since 2011 we are loosing more than one whole Puerto Rico or 6 times São Paulo or London City per year (conservative estimates) In Amazon, from 2015 to 2016 the deforestation increased 29% Amazon Cerrado Total Source: Graphic based on MMA/PRODES data (2017).

22 Significant Opportunity Exists to Boost Yields on Land in Use For instance, in Brazil yields have been increasing over time, but there are still room to notable improvements. Source: Dias et al, 2016

23 Using Cleared Land Can Meet Future Demand for Soy and Beef Beef in general terms Increasing productivity of pasturelands from 32% to 49% liberates land to meet demand for crops until 2040 (Strassburg, et al., 2014). Novo Campo project shows it is possible to produce 400% more meat, 580% greater profit while 50% fewer GHGs / acre (Imaflora, 2016) Amazon Soy 15 million hectares suitable for soy to expand producing areas by 400% just in cleared areas (Brandao, Holly, Rausch, Munger, & Schelly, 2017) Cerrado Soy 41 million hectares cleared areas are potentially suitable for soy, allowing a 170% increase in soy production in cleared areas (Brandao, Holly, Rausch, Munger, & Schelly, 2017)

24 Amazon: 420 M ha total 186 Million ha that are suitable for soy and beef Protected under Conversion Free 136 M ha - 73% 186 M HA Already open 50 M ha 27% Potentially 13 M ha more than just the illegal deforestation Potentially 9 M ha could be protected by compensation Full forest code implemented 2 M ha more than Deforestation Free concept 19 M ha suitable for soy 31 M ha suitable only for pastures

25 Cerrado: 204 Million ha total 172 Million ha that that are suitable for soy and beef Protected under Conversion Free 88 M ha - 51% 39 M ha more than eliminating illegal conversion Potentially 4 M ha could be protected by compensation Full forest code implemented 7 M ha more than Deforestation Free concept 172 M HA Already open 84 M ha 49% 65 M ha suitable for soy 19 M ha suitable only for pastures

26 Beef and Soy are Primary Deforestation Drivers & More Commitments Needed Out of 718 companies analyzed in palm oil, timber, soy, and cattle sectors, 447 have committed to reducing deforestation in their supply chains Yet commitment rates remain considerably lower for soy and cattle, which is troubling given their outsized contribution to tropical forest loss (Supply Change, 2017)

27 Downstream Players Driving the Deforestation-free Movement (Supply Change, 2017)

28 Industry-wide Collaboration is Impeded 800+ UN-recognized definitions of forest Deforestation -free Zero conversion Zero net deforestation and degradation 44 different commitments related to beef and soy production in the Amazon, Cerrado, and Chaco 4+ general concepts of deforestation-free Dozens of cut-off dates and deadlines

29 Harmonized Commitments Can Drive Progress Aligned definitions and commitments

30 WWF Vision To build a future in which people live in harmony with nature. Photo: Brent Stirton / Getty Images / WWF-UK

31 YOU can make a difference! carlos.saviani@wwfus.org wwf.org

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