Trade Regulations

Multinationals call on Europe to end supplier deforestation

May, 19, 2021 Posted by Ruth Hollard

Week 202122

A group of 11 European multinationals in the food, distribution, and retail sectors producing food, cosmetics, consumer products, and luxury products are calling for tougher EU measures to combat deforestation in their respective supply chains.

In a joint statement, Barry Callebaut, Carrefour, Danone, Jerónimo Martins, Kering, L’Occitane, Metro, Nestlé, Reckitt, Sainsbury’s, and Tesco said that the commitment to ending deforestation must begin with the requirement for product and raw material traceability of raw materials when they enter the European common market.

“We recognize that our businesses have a responsibility in this fight because our supply chains are global and include commodities that can contribute to deforestation. Therefore, we are committed to ending deforestation in our production chains, and we have implemented measures to that end over the last ten years,” the companies said in the statement.

The graph below, based on data from Datamar, shows the main Brazilian commodities exported to Europe in 2020 that will feel the results of the tougher measures if adopted:

Top 12 Brazilian Commodities Exported to Europe | Jan to Dec 2020 | TEU

 

 

Graph source: DataLiner (click here to request a demo)

According to the companies, traceability and transparency of the supply chain are fundamental to drive systemic change. As the largest market in the world, the European Union is “in a strong position to promote a more sustainable commodity origination on a global level through trade.”

Source: CNN Brasil

To read the full original article, access the link below:

https://www.cnnbrasil.com.br/business/2021/05/19/multinacionais-pedem-a-europa-mais-rigor-contra-desmatamento-de-fornecedores

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