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Report

Key Cerrado Deforesters in 2020 Linked to the Clearing of More Than 110,000 Hectares

...The Cerrado biome, a vast, biodiverse tropical savannah in Brazil, is under threat from commodity-driven deforestation. Soy expansion and cattle ranching are direct drivers of forest loss in the Cerrado. This report presents new data on specific actors linked to Cerrado deforestation in 2020, including the quantified risk exposure of the largest soy traders, meatpackers, and retailers. Financiers with forest policies are exposed to material risks in their portfolios...Key Findings...[:]...Agricultural expansion is the primary driver of increasing deforestation in the Cerrado. Rising deforestation linked to soy, cattle, and land speculation threatens to disrupt natural water systems, regional climate patterns, and long-term agricultural productivity in the region...[;]...A total of 207,813 ha of Cerrado deforestation in 2020 took place on farms that have had already soy-planted areas. CRR estimates 28.3 percent of total Cerrado deforestation was linked to soy expansion...[;]...Over half of soy-driven Cerrado deforestation is linked to prominent soy producers...[,]...such as SLC Agrícola, Nuveen, and JJF Holdings e Participações...[;]...Most of these companies have trading relationships with Cargill, Bunge, ADM, Louis Dreyfus Company (LDC), and Cofco...[;]...The beef industry is another key driver of deforestation and land speculation in the Cerrado. Meatpackers JBS, Marfrig, and Minerva are highly exposed to Cerrado deforestation in their supply chains, especially in the Matopiba region. Retailers Casino Group, Carrefour, and Cencosud are key beef sales channels, equally linked to deforestation in the biome...[;]...The escalation of market access risk, regulation risk, financing risk, and reputation risk could lead to material financial losses for financers. BNP Paribas, Santander, Rabobank, HSBC, AP2, Caisse de Dépôt, Santander, Credit Agricole, Barclays, and Credit Suisse have billions of US Dollars of exposure to top Cerrado deforesters, which is in conflict with their own forest policies. EU regulation on due diligence of supply chain could trigger major divestments and/or engagement...

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