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THE FOREST FOOTPRINT DISCLOSURE PROJECT

Food and Drink Innovation Network January 2010. THE FOREST FOOTPRINT DISCLOSURE PROJECT. General Presentation Autumn 2009. Tracey Campbell, Director. Agriculture as a Deforestation Driver. Demand for food (particularly meat) and manufactured goods rises with population and per capita income

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THE FOREST FOOTPRINT DISCLOSURE PROJECT

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  1. Food and Drink Innovation Network January 2010 THE FOREST FOOTPRINT DISCLOSURE PROJECT General Presentation Autumn 2009 Tracey Campbell, Director

  2. Agriculture as a Deforestation Driver • Demand for food (particularly meat) and manufactured goods rises with population and per capita income • Increase in supply of some key primary products focused on territories currently or recently forested. • ‘Forest Risk Commodities’: Cattle, Palm Oil, Soy Timber & Biofuels

  3. Aims of Forest Footprint Disclosure • Highlight the involvement of a company’s extended supply chain with FRCs and thus deforestation • Review the state of these supply chains annually using original data from an annual disclosure request • Provide a platform for review of trends and opportunities to improve the sustainability process • Deliver valuation and risk information to investors TO REDUCE THE UNSUSTAINABLE GLOBAL FOREST FOOTPRINT

  4. Copenhagen- Key FRC Issues • Raised awareness of carbon life cycle in supply chains further • Livestock and source of pasture both under increasing scrutiny • Land use change for plantations incorporated into mandated biofuel calculations as well as food usage • Positive pricing for standing forests • Land bank usage opportunity costs changing • Alternative finance becoming available may make degraded land more viable • Change in location of supply sources

  5. The Brazilian Cattle Industry • Largest commercial beef herd in the world • Largest supplier of hides to the leather industry in the world • Extensive cattle ranching , often on cleared forest areas, has been common • Double-damage to the carbon cycle: loss of trees and methane from cows • Perverse incentives are subsidising this change until recently

  6. 2009: a Year of Great Change • Two major reports published • ‘Time to Pay the Bill’ –Amigos da Terra, April • ‘Slaughtering the Amazon’- Greenpeace, May • June 12th:local supermarkets announced they would stop selling meat sourced from suspect ranches • June: Marfrig and Bertin (meatpackers) commit to disowning ranches associated with slave labour and deforestation • July: Nike, adidas, Timberland and C&J Clark give suppliers 12 months to put in place necessary traceability schemes • Federal Public Prosecutor issues >$1bn of lawsuits to ensure ranchers and meatpackers comply with environmental, land tenure and labour laws

  7. Palm Oil • ‘Sunk cost’ of deforestation to be incorporated into carbon calculations- exact metrics unclear • Land banks may be affected • New territories without deforestation baggage may gain in attraction

  8. Copenhagen’s Legacy? • Supranational process too slow – increasing likelihood of national regulation patchwork driven by local interests • Voluntary roundtables not keeping up with carbon economy mindset • Companies are ‘doing it for themselves’ despite absence of a level playing field • Forest funding is more clearly identified but no channel to deliver it established (yet)

  9. FFD Annual Review Launch • When? 10th February 2010 • Time? 10.30 am-12.30 pm • Where? One Moorgate Place, London EC2 • Interested? Registration is required so please contact • Tracey Campbell at this conference • C.mackenzie@globalcanopy.org by e-mail

  10. Thank You for your interest

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