Chain Reaction Research (CRR) hosted a webinar on 5 June 2020 presenting their findings of one of their most current research: identifying the companies most exposed to deforestation-driven fires in their supply chains. The research was focused on the fires that occurred in Brazil (Amazon-Cerrado transition area) and Indonesia (West Kalimantan and Southeast Sumatra) between July and October 2019. CRR replied on hotspot data obtained from NASA as well as potential buying zones maps from potential buying zones from Imazon (a Brazilian conservation NGO) and company concession boundaries.
The results of the research revealed interesting information:
Cattle: When overlaying fire alerts with the potential buying zones, 60% of the total fires recorded were attributed to the top three meatpackers in Brazil—JBS S.A., Marfrig, and Minerva Foods—with JBS S.A. recording the highest risk exposures to fire.
Source: CRR (2020)
Soy: More fires were found to be within the vicinity of Bunge and Cargill silos than any other main soy traders combined throughout Jul-Oct 2019.
Source: CCR (2020)
Palm oil (companies): There were almost 15,000 fire alerts that occurred in concessions owned by the top ten companies most affected by the Jul-Oct 2019 Indonesian fires. However, it should be noted that the total number of hotspots for these ten companies comprise only 4% of all alerts recorded during the same period; CCR suggests that the majority of the fires occurred in small-scale holdings and not within company concessions.
Source: CCR (2020)
Palm oil (traders/refiners): The total number of hotspots recorded within the concession areas of the top 10 traders/refiners in Indonesia with NDPE policies represent 77% of all alerts throughout Jul-Oct 2019.
Source: CCR (2020)