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Canada - forestry

This is a filtered view based on 2014 - Forests Risk Assessment.

Row numberYearOrganizationCountry HQForest Risk CommodityForest Risk AssessmentForest Risk ProcessRegulatory risks - Risk PresentRegulatory risks - Further DetailsReputational Risks - Risk PresentReputational Risks - Further DetailsOperational Risks - Risk PresentOperational Risks - Further DetailsWater 2014 - Number of drivers
12013adidas AGGermanyTimberPartialAll office paper comes from FSC certfied sources All shoe boxes and transport packaging is made of 98 % recycled contentNo riskNon-material riskNon-material risk
22013adidas AGGermanyCattle ProductsYes or 100% third party certified raw materials already achievedAll leather suppliers are covered by the monitoring protocol of the LWGNo riskNon-material riskNon-material riskPotential target of campaign organisations
32014adidas AGGermanyTimberPartialAll office paper comes from FSC certfied sources All shoe boxes and transport packaging is made of 98 % recycled contentNo riskNon-material riskNon-material risk
42014adidas AGGermanyCattle ProductsAll leather suppliers are covered by the monitoring protocol of the LWGNo riskNon-material riskNon-material riskPotential target of campaign organisations
52013AgropalmaBrazilPalm OilYes or 100% third party certified raw materials already achievedAgropalma supplies about 85% of FFB processed in its mills. The rest is supplied by 232 integrated FFB suppliers (185 smallholders and 47 medium outgrowers). Agropalma has a formal supply contract with each one of all FFB suppliers. A Social and Environmental Assessment, which included deforestation and HCV approaches, were conducted in company farm and in all FFB suppliers farms.No riskConsidering the definition of regulatory risk provide by the "guidance”, the is no risk of a new legislation, rule or norm that intends to fight deforestation affect us, because Agropalma only source FFB, and consequently CPO, from areas where native vegetation was removed before November 2005.Non-material riskAs explained before, Agropalma sources about 15% of FFB consumed in palm oil extraction mills. These FFB comes from 47 big outgrowers and 185 smallholders. Company has full control about deforestation issues because it approves or don’t the areas intended to be planted. But the social performance of our supplier partners, especially the smallholders, is difficult to control. So, for example, there is the risk of some work accidents, no adequate labor conditions, etc. being exposed (it happened already). To address these issues, Agropalma is supporting the FFB suppliers to get RSPO Certification. Anyway we understand that is more sustainable include smallholders in our core business and support them to get a good level of social performance than just put them aside of our supply chain.No riskThe anwer was given considering the definition of operational risks provided by the "guidance". As explained before, Agropalma choses or approves the land where a new oil palm planting will be established, and we just accept areas deforested before November 2005. Agropalma also buy FFB just from who have a contract with company. In this way, we have 100% control on the land where our FFB comes from and we can assure that our FFB sourcing is not related with deforestation.
62013Ahlstrom CorporationFinlandTimberYes or 100% third party certified raw materials already achievedEU Timber Regulation Due Diligence System established and third party verified. See attachment. 81% of the fiber raw materials were purchased asFSC or PEFC certified or FSC Controlled Wood certified. This was 100% for the CoC certified plants. FSC Controlled Wood risk assessments by own company verification for for two pulps. Non-material riskThe EU Timber Regulation and The US Lacey Act pose a regulatory risk associated with purchases of timber based raw materials. Ahlstrom has a Due Diligence System in place that is externally verified to comply with the legislations.Non-material riskAhlstrom is further away in the value chain and not directly associated with forests. The reputational risk is therefore not imminent, albeit possible for some external parties to question the actions of some suppliers, justified or not.No riskBeing a large buyer of market pulp, Ahlstrom has qualified alternative sources of supply for its key raw materials.
72014Ahlstrom CorporationFinlandTimberYesDue Diligence System for EU Timber Regulation and the US Lacey Act. Pertinent risk assessments related to chain-of-custody forest certifications as described in the standard criteria. Three countries assessed for risk based on FSC criteria for own verification were France, Spain and the United States.Non-material riskThe EU Timber Regulation and The US Lacey Act pose a regulatory risk associated with purchases of timber based raw materials. Ahlstrom has a Due Diligence System in place to comply with the legislations.Non-material riskAhlstrom is a supplier to some of the world's most well-known brands, that may be subject to extra scrutiny for their fiber based materials.No riskBeing a large buyer of market pulp, Ahlstrom has qualified alternative sources of supply for its key raw materials.
82013AmcorAustraliaTimberPartialFor purchased market pulp – Petrie Mill has conducted a risk assessment process of its pulp suppliers (as part of its FSC Certification) using the risk assessment process in the FSC Standard (FSC_STD_40-005) for Company Evaluation of FSC Controlled Wood. This is also published on the FSC Website: http://info.fsc.org/Detail?id=a024000000844FSAAY Amcor has a detailed supplier risk assessment process. This includes the probability and impact of a range of operational, financial, reputation and viability risks relating to suppliers.Non-material riskThere is some small risk associated with ensuring suppliers of fibre products into the EU comply with the EU Timber Regulation. However, the risk is small as most suppliers are already compliant, and so alternatives are available if a supplier cannot comply. There is also a small risk of legislation being implemented in other regions, which may require additional time or financial commitments in order to achieve compliance.Material riskThere is significant reputational risk associated with purchasing fibre products, particularly for non-certified products from Asia, due to prominent NGOs focussing in this area. This is mitigated by choosing suppliers with certification in place, operations in regions of low risk or good governance procedures.Material riskAvailability of certified paper may become limited as demand for certified paper increases. Increase in cost of certified paper may increase cost of production.
92014BramblesAustraliaTimberYesManagement is responsible for the development, implementation and management of systems that: - identify, assess and manage risks in an effective and efficient manner; - enable decisions to be based on a comprehensive view of the reward-to-risk balance; - provide greater certainty of the delivery of objectives; and - satisfy the Group’s corporate governance requirements. One element of Brambles’ internal risk control systems is its Code of Conduct (attached). Brambles is committed to working towards Zero Harm (Charter attached), meaning no injuries and no environmental damage and no detrimental impact on human rights. Brambles focus is to provide innovative, efficient and sustainable pooling solutions to its customers. The Environmental Policy in the Code of Conduct is set by the Board and operates worldwide, including in countries that may not yet have enacted laws for the protection of the environment. CHEP maintains strict lumber sourcing policies that support the replenishment of natural resources by sourcing lumber in a responsible and sustainable manner. CHEP does not source from protected areas, parks or similar areas in which harvesting operations do not promote responsible forestry management. CHEP has a target of achieving chain of custody certification for lumber purchased for CHEP pallets by 2015, to provide a focus for the continual improvement and promotion of the responsible and sustainable procurement of lumber. In addition, in FY13, Brambles developed a global supplier policy covering areas of compliance, diversity, labour standards, human rights, safety and the environment and outlining the Group's commitment to working with suppliers to develop more efficient, safer and sustainable supply chains. Suppliers are expected to follow the principles of Brambles Zero Harm commitment. The supplier policy will be rolled out to all Brambles businesses in FY14. Further information on Brambles' risks management processes and controls are reported in the Corporate Governance Statement of its Annual Report pp 26-28 attached. In addition, when completing the demerger of its Recall business, Brambles disclosed key risks in the Scheme Book (attached below). This included Fluctuations in commodity prices and raw material availability (including lumber). (see p 106)Non-material riskIn Australia, The Illegal Logging Prohibition Amendment Regulation 2013 prohibits the importation and sale of all timber products containing illegally logged timber; prohibits the processing of illegally harvested domestically grown raw logs; requires importers of regulated timber products and processors of raw logs to comply with due diligence requirements; requires the accurate description of legally logged timber products for sale in Australia; establishes enforcement powers and offences, and imposes penalties; and provides for a review of the first five years of the operation of the Act. Similar legislation may exist in other countries in which CHEP operates. The risk associated with legality of purchased lumber means CHEP must be able to verify this within its supply chain, especially where pallets may be shipped internationally.Material riskOur customers are increasingly concerned about impacts on the environment. Reputational risk could arise if we are not seen to be addressing our impacts on the environment. Brambles’ Group risk matrix, which sets out the top 10 “net” risks facing the Group and the steps being taken to mitigate those risks, in FY13 included risks of competition and retention of major customers (p 7 of Annual Report 2013). Reputational risk could arise if we are not seen to be addressing our impacts on the environment. If we are not sufficiently transparent about our actions in these areas, it could lead to customers taking their business to competitors. The credibility and business value of our business brand could be undermined by negative publicity around any practices that are counter to reducing our environmental impact. In 2010, Brambles announced its sustainability strategy and its strategic objectives and initiatives over five years to 2015. The targets Brambles has set for 2015, including the target of chain of custody certification for lumber purchased for pallets, are key drivers in its efforts. Commentary on the targets and the progress made is in the 2013 Sustainability Review, pp 12-14. Brambles could face reputational damage that affects its share price through exclusion from ethical/green investment funds, including superannuation funds in Australia that consider sustainability initiatives. Brambles’ Group risk matrix in FY13 included risks to our business model, strategy and execution, innovation and others (see p 7 of the Annual Report 2013).] Brambles believes its sustainability strategy and targets, including annual reporting on progress against these targets, address the environmental concerns of its investors. It regularly provides communication to the investment community to alleviate this risk and considers sustainability throughout its business operations, including through its Code of Conduct and Zero Harm Charter.Material riskBrambles’ Group risk matrix, which sets out the top 10 “net” risks facing the Group and the steps being taken to mitigate those risks, in FY13 included risks to the business model, where changing supply chain dynamics and customer needs could render CHEP's existing service offering and business model out of date (p 7 of Annual Report 2013). Current market issues that, in combination or separately, could support competitive service offerings include attributes of wood versus alternative materials, etc. These issues could, over time, have an impact on revenue, cost base, economies of scale and the value of CHEP's existing assets. The Scheme Book - demerger of Recall (attached) noted that rapid and sustained changes in the availability and price of lumber may result in decreased demand for Brambles' services, increases in its costs and reduced profitability (p 104). It also noted Brambles has operations directly or indirectly exposed to volatility in costs of lumber (p 106). While Brambles generally sources supplies of raw materials from a range of providers in each geographic region, in Australia Brambles is dependent on a single supplier for its lumber and plastic resin. CHEP's pallet pooling system operates on the principles of recover, reduce, reuse and recycle, reclaiming and reusing lumber when pallets are conditioned. This reduces the need for virgin raw materials (see p 14 Sustainability Review). Pallets Asia-Pacific (of which Australia is a part) reported $US391.8 million sales revenue for FY13. Pallets reported $US3,944.4 million in sales revenue for FY13.
102014AmcorAustraliaTimberYesAn initial risk assessment of fibre sources covering regulatory, reputational and operational risk was conducted for Amcor in 2013 by the Forest Trust. Additional work has also been conducted by Amcor business groups: One business group assesses risk for paper suppliers in the same way as all other suppliers, covering issues of contingency, supplier managing their own supply chain, and product safety / legal compliance (such as meeting EU timber regulations for paper suppliers). For purchased market pulp – Petrie Mill has conducted a risk assessment process of its pulp suppliers (as part of its FSC Certification) using the risk assessment process in the FSC Standard (FSC_STD_40-005) for Company Evaluation of FSC Controlled Wood. This is also published on the FSC Website: http://info.fsc.org/Detail?id=a024000000844FSAAY.Non-material riskThere is some small risk associated with ensuring suppliers of fibre products into the EU comply with the EU Timber Regulation. However, the risk is small as most suppliers are already compliant, and so alternatives are available if a supplier cannot comply. There is also a small risk of legislation being implemented in other regions, which may require additional time or financial commitments in order to achieve compliance.Material riskThere is significant reputational risk associated with purchasing fibre products, particularly for non-certified products from Asia, due to prominent NGOs focussing in this area. This is mitigated by choosing suppliers with certification in place, operations in regions of low risk or good governance procedures. During the reporting year, Amcor worked with one such supplier who was considered to be the highest risk (although only supplying a small amount to Amcor), to ensure good procedures were in place to reduce this risk.Non-material riskAvailability of certified paper may become limited as demand for certified paper increases. Increase in cost of certified paper may increase cost of production. However, the risk is considered to be minor as it is believed that certified paper needs can be met for the foreseeable future.
112013Associated British FoodsUnited KingdomPalm OilPartialIndividual ABF businesses have reviewed their sourcing approaches for Palm and Palm derived products to meet ABF’s commitment to source certified material by the beginning of 2015. Some businesses have already achieved fully certified sustainable palm oil/derivatives supply. ABF businesses have considered the relevant risks according to their risk assessment procedures – which vary across the business.No riskMaterial riskMaterial risk
122013Associated British FoodsUnited KingdomSoyPartialSome ABF businesses are aware of the increasing focus on the soy supply chain and deforestation concerns. ABF businesses have reviewed the sourcing of soy and soy derivatives and considered relevant risks according to their risk assessment procedures – which vary across the business.No riskMaterial riskMaterial risk
132014Associated British FoodsUnited KingdomTimberYesIndividual ABF businesses are required to complete risk assessments for their organisation capturing risks as far ranging as financial, reputational, supply and regulatory/legal. As a minimum ABF businesses comply with the local legislation of countries in which they operate for example the Packaging Waste and Timber Regulations in the EU to which all concerned ABF businesses comply, checking suppliers’ compliance in addition. ABF businesses hold a list of products and their suppliers. Numerous suppliers of timber derived packaging products are vertically integrated and where this is not the case the product specification held by the ABF businesses can also detail raw material source. As part of the supplier approval processes many ABF businesses request information on suppliers’ sustainability and environmental policies. There is no known regulatory risk having an impact on our operations and ABF businesses comply with all local legislation in countries of operation. There are no perceived reputational risks. Some of our larger consumer brands in our grocery businesses have full chain of custody for their packaging requirements with packs displaying the appropriate FSC logo. Packaging specifications are largely of industry standard and there is relative ease to switch supply should risk present in the future.No riskOur businesses sourcing these commodities are responsible for monitoring legislation in the relevant countries and any potential impact on our supply chains and sourcing. For example, the Packaging and Packaging Waste Directive and EU Timber Regulations.Material riskIf negative event/s were to occur in our supply chain, there is the high potential for there to be reputational impacts to certain brands.Material riskOperational supply issues may arise for a number of reasons such as price volatility, security of supply or issues associated with the commodity’s heritage. Individual businesses monitor these potential operational impacts as part of their risk assessments.
142014Associated British FoodsUnited KingdomPalm OilYesIndividual ABF businesses are required to complete risk assessments for their organisation capturing risks as far ranging as financial, reputational, supply and regulatory/legal. As it relates to palm and palm derived products, each business is aware of the reputational and operational/supply risks that exist if we are unable to secure sustainable supply by ABF’s 2015 time-bound commitment. In turn, ABF businesses are aware of the interdependencies between sister companies and the reputational damage that can occur to branded businesses should the wider group not achieve its 2015 commitment. With this is mind, businesses have developed plans or supply strategies that are consistent with RSPO recognised supply chain options for sourcing sustainable palm oil and palm derived materials. These approaches include the direct purchase of physical CSPO materials, i.e. via segregated or mass balance methods, where commercially available and feasible. In circumstances where physical supply is not established, we have supported the development of sustainable supply through recognised Book & Claim methods using Green Palm certificates. Supply chain certification has been secured for a number of ABF businesses already, and further plans to secure this approval are built into relevant businesses sourcing strategies going forward.No riskOur businesses sourcing these commodities are responsible for monitoring legislation in the relevant countries and any potential impact on our supply chains and sourcing.Material riskIf negative event/s were to occur in our supply chain, there is the high potential for there to be reputational impacts to certain brands. Sustainable sourcing of palm is a high profile issue with media and NGO campaign coverage. We are in dialogue with NGOs and working to ensure our products are suitably labelled.Material riskOperational supply issues may arise for a number of reasons such as price volatility, security of supply or issues associated with the commodity’s heritage. Individual businesses monitor these potential operational impacts as part of their risk assessments.
152014BramblesAustraliaPalm OilNoBrambles' businesses purchase chemicals and detergents for the cleaning of their pallets, RPCs and containers. These chemicals and detergents may contain palm oil as an ingredient. Brambles will investigate its sourcing of these products and work with its suppliers to determine the extent and certification status that applies to palm oil sourcing. Management is responsible for the development, implementation and management of systems that: - identify, assess and manage risks in an effective and efficient manner; - enable decisions to be based on a comprehensive view of the reward-to-risk balance; - provide greater certainty of the delivery of objectives; and - satisfy the Group’s corporate governance requirements. One element of Brambles’ internal risk control systems is its Code of Conduct (attached). Brambles is committed to working towards Zero Harm (Charter attached), meaning no injuries and no environmental damage and no detrimental impact on human rights. Brambles focus is to provide innovative, efficient and sustainable pooling solutions to its customers. The Environmental Policy in the Code of Conduct is set by the Board and operates worldwide, including in countries that may not yet have enacted laws for the protection of the environment. It includes Brambles intent to seek out suppliers who have a proactive approach to environmental risk management and who manage natural resources responsibly. In addition, in FY13, Brambles developed a global supplier policy covering areas of compliance, diversity, labour standards, human rights, safety and the environment and outlining the Group's commitment to working with suppliers to develop more efficient, safer and sustainable supply chains. Suppliers are expected to follow the principles of Brambles Zero Harm commitment. The supplier policy will be rolled out to all businesses in FY14. Further information on Brambles' risks management processes and controls are reported in the Corporate Governance Statement of its Annual Report on pp 26-28, attached below.No riskWhile Brambles is working to understand the extent of palm oil use in the chemicals and detergents it purchases, it is currently unaware of any regulatory risk associated with this.Non-material riskAs for lumber, our customers are increasingly concerned about the impact of deforestation and sustainable palm oil sourcing, particularly those customers who operate in the FMCG sector. Reputational risk could arise if we are not seen to be addressing our impacts on the environment. See above description for further information.Material riskThe supply of chemicals and detergents is vital for Brambles businesses to continue to operate in accordance with local laws and regulations, particularly in the transport of food products. Hazard Analysis and Critical Control Point (HACCP) requirements for the safe management of food products in some markets require Brambles' businesses to clean its pallets, RPCs and Containers with detergents where applicable.
162014Associated British FoodsUnited KingdomSoyYesIndividual ABF businesses are required to complete risk assessments for their organisation capturing risks as far ranging as financial, reputational, supply and regulatory/legal. As it relates to soy and soy derived products, each business is aware of the reputational and operational/supply risks concerned with soy and increasing interest and awareness of deforestation agenda with this commodity. With this is mind, businesses have developed plans or supply strategies that are consistent with developing responsible soy supply for businesses where this matter is of significant risk and relevance. These approaches include the direct purchase of responsibly sourced soy, where commercially available and feasible. The development of meaningful and relevant cross industry approaches within the animal feed sector is critical and our animal feed business have played a leading role in this area. Our bakery ingredients business has taken a proactive step to secure BM Trada certified soy status for its soy supply chain sourced from Canada.No riskOur businesses sourcing these commodities are responsible for monitoring legislation in the relevant countries and any potential impact on our supply chains and sourcing.Material riskIf negative event/s were to occur in our supply chain, there is the high potential for there to be reputational impacts to certain brands.Material riskOperational supply issues may arise for a number of reasons such as price volatility, security of supply or issues associated with the commodity’s heritage. Individual businesses monitor these potential operational impacts as part of their risk assessments.
172014Avon Products, Inc.USATimberYesBecause Avon is a significant consumer of paper products, Avon is positioned to influence both supply and demand in the market, and thus contribute to the development of environmental solutions that conserve. That is why Avon developed the Avon Paper Promise, to promote responsible forest use and protect forests.No riskNon-material riskMaterial risk
182014Avon Products, Inc.USAPalm OilYesWhile Avon is not a significant user of palm oil and we believe the physical operational, regulatory and reputational risks to the company are low, Avon has made a commitment through its Palm Oil Promise to take a leadership position in palm oil by purchasing GreenPalm certificates covering 100 percent of its global palm oil use. This will help drive demand for sustainable palm oil, increase the supply for sustainable palm oil, and help maintain biodiversity and habitat for endangered species.No riskNon-material riskMaterial risk
192014Best Buy Co., Inc.USATimberYesAt Best Buy, we aknowledge the potential reputational risk of being seen as contributing to the global problem of deforestation. We categorize this risk as low due to our commitment to sustainable forestry and corresponding actions outlined in our Paper Procurement Corporate Statement. Through our enterprise risk process lead by our Risk Council and supported by Communications and Public Affairs Issue Management working group, we monitor all reputational issues, facilitate working group sessions and influence enterprise activities to mitigate risk.Non-material riskDue to our Paper Procurement Policy and current traceability, we view the reputational risk low although possible to be targeted by and NGO campaign related to corporate paper use.
202014BillerudKorsnäsSwedenTimberYesRisk assessment in accordance with the certifications FSC Chain of Custody/Controlled Wood and PEFC Chain of Custody. Furthermore due diligence processes in accordance with the European Union Timber Regulation (EUTR).No riskThe legislation (Forestry Act) is aimed to ensure two goals are achieved at the same level of importance, the environmental and the wood production goals. By that the legislation ensures wood procurement is sustainably ensured on long-term.Non-material riskAs BillerudKorsnäs ambition is to ensure sustainable forest management acccording to certification and legislation and the bio-based products are environmentally better alternatives than other based on fossil materials there will probably be no risk on a larger scale. The risk is some mistake is done in the operational forest management followed by criticism.No riskThere are several interests in how to use the resource forest, but BillerudKorsnäs' ambition is to thoroughly analyze and plan all operations, in order to take all different aspects into consideration. In the short run no significant risks can be seen.
212014BillerudKorsnäsSwedenBiofuelsNot applicableBiofuels are derived primarily as black liquor and refined bio oil from the residues of the production processes. Furthermore purchased as logging residues, bark from pulpwood trees, low quality wood, residual wood chips and sawdust from sawmills and wood waste from the building sector. In case of supplying logging residues from final fellings the risk assessment is covered by the timber supplying process.No riskAs 97% of the energy use is based on biofuels and the aim for BillerudKorsnäs is to phase out fossil fuels completely we can´t see any risks for legislation restricting the energy supply.No riskNo risks can be seen, rather opportunities.Non-material riskAs the dominant part of the energy supply is based on residues from the manufacturing processes there are no significant risks as far as all processes and equipment work technically as they shall. In the long run there is always a slight risk for disturbances in machinery for energy production which potentially could cause extra costs.
222013BramblesAustraliaTimberYes or 100% third party certified raw materials already achievedManagement is responsible for the development, implementation and management of systems that: - identify, assess and manage risks in an effective and efficient manner; - enable decisions to be based on a comprehensive view of the reward-to-risk balance; - provide greater certainty of the delivery of objectives; and - satisfy the Group’s corporate governance requirements. Brambles risk management process includes risks in the purchasing of commodities. One of the key elements of Brambles’ internal risk control systems is its Code of Conduct. In its Code of Conduct, Brambles specifies that Brambles is committed to working towards Zero Harm, meaning no injuries and no environmental damage. Our goal is to provide innovative, efficient and sustainable business solutions in support services to our customers. The Environmental Policy in the Code of Conduct is set by the Board and operates worldwide, including in countries that may not yet have enacted laws for the protection of the environment. It includes Brambles intent to seek out suppliers who have a proactive approach to environmental risk management and who manage natural resources responsibly. This underpins CHEP's strict lumber sourcing policies. CHEP maintains strict lumber sourcing policies that support the replenishment of natural resources by sourcing lumber in a responsible and sustainable manner. CHEP does not source from protected areas, parks or similar areas in which harvesting operations do not promote responsible forestry management. CHEP has a target of achieving chain of custody certification for lumber purchased for CHEP pallets by 2015, which will provide assurance of responsible and sustainable practices. Brambles' sustainability strategy specifically addresses responsible management of forest resources for Brambles, its suppliers, customers and the wider community, attached below. Brambles engages with its suppliers to assess whether their practices are in line with Brambles' environmental principles and acts accordingly to help those suppliers meet Brambles’ requirements and standards. The Zero Harm Charter and the Code of Conduct are both attached below. Further information on Brambles' risks management processes and controls are reported in the Corporate Governance Statement of its Annual Report on pages 40-42, attached below.Non-material riskIn Australia, The Illegal Logging Prohibition Amendment Regulation 2013 prohibits the importation and sale of all timber products containing illegally logged timber; prohibits the processing of illegally harvested domestically grown raw logs; requires importers of regulated timber products and processors of raw logs to comply with due diligence requirements; requires the accurate description of legally logged timber products for sale in Australia; establishes enforcement powers and offences, and imposes penalties; and provides for a review of the first five years of the operation of the Act. Similar legislation may exist in other countries in which CHEP operates. The risk associated with legality of purchased lumber means CHEP must be able to verify this within its supply chain, especially where pallets may be shipped internationally. For example, CHEP Asia appointed a procurement manager during the Year in Malaysia and made good progress in raising awareness of sustainable lumber sourcing within CHEP’s Malaysian lumber supply base. All Malaysian suppliers source 100% of CHEP lumber from state forests with government transit documentation to ensure all lumber is tracked, species-checked and verified that it was legally harvested.Material riskOur customers are increasingly concerned about impacts on the environment. Reputational risk could arise if we are not seen to be addressing our impacts on the environment. Brambles’ Group risk matrix, which sets out the top 10 “net” risks facing the Group and the steps being taken to mitigate those risks, in FY12 included risks of competition and retention of major customers (page 13 of Annual Report 2012). Reputational risk could arise if we are not seen to be addressing our impacts on the environment. If we are not sufficiently transparent about our actions in these areas, it could lead to customers taking their business to competitors. The credibility and business value of our business brand could be undermined by negative publicity around any practices that are counter to reducing our environmental impact. In 2010, Brambles announced its sustainability strategy and its strategic objectives and initiatives over five years to 2015. The targets Brambles has set for 2015, including the target of chain of custody certification for lumber purchased for pallets, are key drivers in its efforts. Commentary on the targets and the progress made is in the Sustainability section from the Annual report, pages 14-16. Brambles could face reputational damage that affects its share price through exclusion from ethical/green investment funds, including superannuation funds in Australia that consider sustainability initiatives. Brambles’ Group risk matrix in FY12 included risks to our business model, strategy and execution, innovation and market communication, where Brambles is at risk of not effectively communicating to the market, which may lead to a loss of investor confidence in the business and its management and reduced share performance (see page 13 of the Annual Report 2012). Brambles believes its sustainability strategy and targets, including annual reporting on progress against these targets, address the environmental concerns of its investors. It regularly provides communication to the investment community to alleviate this risk and considers sustainability throughout its business operations, including through its Code of Conduct and Zero Harm Charter.Material riskBrambles’ Group risk matrix, which sets out the top 10 “net” risks facing the Group and the steps being taken to mitigate those risks, in FY12 included risks to the business model, where changing supply chain dynamics and customer needs could render CHEP's existing service offering and business model out of date (page 13 of Annual Report 2012). Current market issues that, in combination or separately, could support competitive service offerings include attributes of wood versus alternative materials, etc. These issues could, over time, have an impact on revenue, cost base, economies of scale and the value of CHEP's existing assets.
232013British AirwaysUnited KingdomTimberYes or 100% third party certified raw materials already achievedTimber widely recognised as a risk commodity - this includes timber for building works, furniture/fittings and paper. Sustainable policies put in place to reduce risk of use. Most of the paper used is certified. We are in the process of reviewing one of our supplier’s contract (RRD). The environment team will be part of the process. No riskWhere we use sustainable products we are proud to promote the fact. This enables the airline to raise topics of an environmental nature with its customers and the wider public. It also enables the airline to support companies which supply sustainable products through raising their profile with the airlines customers. Although this has not impact on deforestation, we worked with catering to induce our catering providers to purchase sustainable fish from MSC certified suppliers for some of the dishes we offer on board. These are identified by the MSC logo.Increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'. No risk
242013British AirwaysUnited KingdomPalm OilPartialParticipation for the fourth year running in the Forest Disclosure project is educating our risk assessment process through making BA increasingly aware of the commodities we use, where they are sourced from and the wider implications (including risk). Our catering operation continues to be a primary source of risk. This is largely through using commodities which we are unable to clarify if and how they drive deforestation - which itself creates a potential reputational risk. Building on the annual FFD reporting process, we are developing a strong picture of where this risk is in our operation. This exercise and more resources put into our catering and environment department has started to change the shape of our relationship with our caterers and suppliers as we can be more focused. We are now looking at US suppliers, catering and environment team working together to assess their products. No riskWhere we use sustainable products we are proud to promote the fact. This enables the airline to raise topics of an environmental nature with its customers and the wider public. It also enables the airline to support companies which supply sustainable products through raising their profile with the airlines customers. Although this has not impact on deforestation, we worked with catering to induce our catering providers to purchase sustainable fish from MSC certified suppliers for some of the dishes we offer on board. These are identified by the MSC logo.Increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'. No risk
252013British AirwaysUnited KingdomCattle ProductsPartialParticipation for the fourth year running in the Forest Disclosure project is educating our risk assessment process through making BA increasingly aware of the commodities we use, where they are sourced from and the wider implications (including risk). Our catering operation continues to be a primary source of risk. This is largely through using commodities which we are unable to clarify if and how they drive deforestation - which itself creates a potential reputational risk. Building on the annual FFD reporting process, we are developing a strong picture of where this risk is in our operation. This exercise and more resources put into our catering and environment department has started to change the shape of our relationship with our caterers and suppliers as we can be more focused. We are now looking at US suppliers, catering and environment team working together to assess their products. No riskWhere we use sustainable products we are proud to promote the fact. This enables the airline to raise topics of an environmental nature with its customers and the wider public. It also enables the airline to support companies which supply sustainable products through raising their profile with the airlines customers. Although this has not impact on deforestation, we worked with catering to induce our catering providers to purchase sustainable fish from MSC certified suppliers for some of the dishes we offer on board. These are identified by the MSC logo.Increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'. No risk
262013British AirwaysUnited KingdomSoyPartialParticipation for the fourth year running in the Forest Disclosure project is educating our risk assessment process through making BA increasingly aware of the commodities we use, where they are sourced from and the wider implications (including risk). Our catering operation continues to be a primary source of risk. This is largely through using commodities which we are unable to clarify if and how they drive deforestation - which itself creates a potential reputational risk. Building on the annual FFD reporting process, we are developing a strong picture of where this risk is in our operation. This exercise and more resources put into our catering and environment department has started to change the shape of our relationship with our caterers and suppliers as we can be more focused. We are now looking at US suppliers, catering and environment team working together to assess their products. No riskWhere we use sustainable products we are proud to promote the fact. This enables the airline to raise topics of an environmental nature with its customers and the wider public. It also enables the airline to support companies which supply sustainable products through raising their profile with the airlines customers. Although this has not impact on deforestation, we worked with catering to induce our catering providers to purchase sustainable fish from MSC certified suppliers for some of the dishes we offer on board. These are identified by the MSC logo.Increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'. No risk
272013Coop GenossenschaftSwitzerlandSoyYes or 100% third party certified raw materials already achievedInternal working group on responsible soy. Food screening of the Coop product range. Intense stakeholder dialog with WWF, Greenpeace and EvB. Swiss cooperation with involved businesses along the soy supply chain (Swiss Soy Network). Analysis of food raw materials with the Coop risk monitor (partially based on Maplecroft data)No riskMaterial riskUsing soy feed for our Naturfarm Label programm is under discussion because feed is imported and not produced in Switzerland, also deforestation No risk
282013British AirwaysUnited KingdomBiofuelsYes or 100% third party certified raw materials already achievedAt BA we do not use jet biofuel yet as it is not commercially available; however, in partnership with Rolls-Royce we are testing alternative fuels. A number of sustainability aspects will be taken into consideration including the use of natural resources, energy, waste and by-products. The project will use the standards established by the Roundtable on Sustainable Biofuel. In addition we are working in partnership with Solena to build the first biojet fuel plant that will convert waste into biofuel. By using waste, the project will help to reduce the amount sent to landfill and will not have any impact on food stock. For ground vehicles identifying the makeup of our fuel content is currently highly challenging- working to identify the content is the next step. Jet fuel is very tightly monitored and quality controlled and has to meet strict regulatory requirements - these related to operation regulation rather than deforestation related regulations Increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'. No risk
292014British AirwaysUnited KingdomTimberYesIn 2013 we refreshed our approach to Supplier risk monitoring, adopting an approach endorsed by the Institute of Risk Management with regular reviews undertaken. Our procurement team maintain a risk based approach to identify where potential Sustainability risks lie in our global supplier base. During 2012, their review has allowed a clear understanding of where the highest risks exist when measured against three elements: 1 - Impact on our customers through products or services. 2 - Impact on the environment. 3 - Exposure to potential labour issues. BA Responsible Procurement Strategy focuses on three themes: 1 - reduce supplier emissions 2 - source ethical suppliers 3 - behave responsibly towards our suppliers. Timber widely recognised as a risk commodity - this includes timber for building works, furniture/fittings and paper. To mitigate any risk, we have sustainable policies put in place to ensure paper used is certified or recycled. As additional mitigation to paper usage, we have programmes in place to reduce the use of paper in offices and to increase recycling. No riskWhere we use sustainable products we are proud to promote the fact. This enables the airline to raise topics of an environmental nature with its customers and the wider public. It also enables the airline to support companies which supply sustainable products through raising their profile with the airlines customers. Although this has not impact on deforestation, we worked with catering to induce our catering providers to purchase sustainable fish from MSC certified suppliers for some of the dishes we offer on board. These are identified by the MSC logo. We are also working on extending our sustainable sourcing to chicken and eggs.No riskBA is a transport service provider, our sustainability strategy focuses on reducing emissions through fuel efficiency programmes, advanced technology and new aircraft. The use of timber/paper is proportionally limited and so is the risk of reputational damage; however, the increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'.No riskBA is a transport service provider, our sustainability strategy focuses on reducing emissions through fuel efficiency programmes advanced technology and new aircraft . The use of timber/paper is proportionally limited and so is the risk of reputational damage; however, the increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'.
302014British AirwaysUnited KingdomPalm OilPartialIn 2013 we refreshed our approach to Supplier risk monitoring, adopting an approach endorsed by the Institute of Risk Management with regular reviews undertaken. Our procurement team maintain a risk based approach to identify where potential Sustainability risks lie in our global supplier base. During 2012, their review has allowed a clear understanding of where the highest risks exist when measured against three elements: 1- Impact on our customers through products or services. 2 -Impact on the environment. 3 - Exposure to potential labour issues. Participation for the fifth year running in the Forest Disclosure is educating our risk assessment process through making BA increasingly aware of the commodities we use, where they are sourced from and the wider implications (including risk). Our catering operation continues to be a primary source of risk. This is largely through using commodities which we are unable to clarify if and how they drive deforestation - which itself creates a potential reputational risk. Building on the annual CDP reporting process, we are developing a strong picture of where this risk is in our operation. This exercise and resources put into our catering and environment department has contributed in developing the relationship with our caterers and suppliers as we can be more focused and work together to minimise risks. To further mitigate the impact, we work together with our caterers to identify supplies of certified products and assess if we can modify our offering.No riskWhere we use sustainable products we are proud to promote the fact. This enables the airline to raise topics of an environmental nature with its customers and the wider public. It also enables the airline to support companies which supply sustainable products through raising their profile with the airlines customers. Although this has not impact on deforestation, we worked with catering to induce our catering providers to purchase sustainable fish from MSC certified suppliers for some of the dishes we offer on board. These are identified by the MSC logo. We are also working on extending our sustainable sourcing to chicken and eggs.No riskBA is a transport service provider, our sustainability strategy focuses on reducing emissions through fuel efficiency programmes advanced technology and new aircraft . The use of palm oil as component of our catering service for our customers is proportionally limited and so is the risk of reputational damage; however, the increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'.No riskBA is a transport service provider, our sustainability strategy focuses on reducing emissions through fuel efficiency programmes advanced technology and new aircraft . The use of palm oil as component of our catering service for our customers is proportionally limited and so is the risk of reputational damage; however, the increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'.
312014British AirwaysUnited KingdomCattle ProductsYesIn 2013 we refreshed our approach to Supplier risk monitoring, adopting an approach endorsed by the Institute of Risk Management with regular reviews undertaken. Our procurement team maintain a risk based approach to identify where potential Sustainability risks lie in our global supplier base. During 2012, their review has allowed a clear understanding of where the highest risks exist when measured against three elements: 1 - Impact on our customers through products or services. 2 - Impact on the environment. 3 - Exposure to potential labour issues. Participation for the fifth year running in the Forest Disclosure is educating our risk assessment process through making BA increasingly aware of the commodities we use, where they are sourced from and the wider implications (including risk). Our catering operation continues to be a primary source of risk. This is largely through using commodities which we are unable to clarify if and how they drive deforestation - which itself creates a potential reputational risk. Building on the annual CDP reporting process, we are developing a strong picture of where this risk is in our operation. This exercise and resources put into our catering and environment department has contributed in developing the relationship with our caterers and suppliers as we can be more focused and work together to minimise risks. To further mitigate the impact, we are looking at widen our scope to chicken and eggs as well so to reduce the risk of reputational damage.No riskWhere we use sustainable products we are proud to promote the fact. This enables the airline to raise topics of an environmental nature with its customers and the wider public. It also enables the airline to support companies which supply sustainable products through raising their profile with the airlines customers. Although this has not impact on deforestation, we worked with catering to induce our catering providers to purchase sustainable fish from MSC certified suppliers for some of the dishes we offer on board. These are identified by the MSC logo. We are also working on extending our sustainable sourcing to chicken and eggs.No riskBA is a transport service provider, our sustainability strategy focuses on reducing emissions through fuel efficiency programmes advanced technology and new aircraft . The use of beef/leather is proportionally limited and so is the risk of reputational damage; however, the increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'.No riskBA is a transport service provider, our sustainability strategy focuses on reducing emissions through fuel efficiency programmes advanced technology and new aircraft.The use of beef/leather is proportionally limited and so is the risk of reputational damage; however, the increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'.
322014Hillshire Brands CompanyUSAPalm OilPartialPrimarily managed through an annually increasing amount of GreenPal certificates to offset an amount of risk associated with regulatory, reputational, and operational deforestation. Additionally, ongoing discussions with suppliers to understand the options available and related costs for decreasing Hillshire Brands' risk.Non-material riskRegulations, particularly overseas where this commodity is primarly originated., are slow moving. However, industry has taken significant strides to mitigate these risks via RSPO-type initiatives. However, Hillshire Brands' palm oil usage is small, therefore making this non-material.Material riskConsumer package goods companies are under pressure to move to a traceability/segregated model for this commodity. As such, Hillshire Brands has some reputational exposure as it follows the industry trend toward a more sustainable supply of palm oil.Non-material riskSupply appears sufficient, so any risk would likely be non-material.
332014British AirwaysUnited KingdomSoyPartialIn 2013 we refreshed our approach to Supplier risk monitoring, adopting an approach endorsed by the Institute of Risk Management with regular reviews undertaken. Our procurement team maintain a risk based approach to identify where potential Sustainability risks lie in our global supplier base. During 2012, their review has allowed a clear understanding of where the highest risks exist when measured against three elements: 1 -Impact on our customers through products or services. 2 - Impact on the environment. 3 - Exposure to potential labour issues. Participation for the fifth year running in the Forest Disclosure is educating our risk assessment process through making BA increasingly aware of the commodities we use, where they are sourced from and the wider implications (including risk). Our catering operation continues to be a primary source of risk. This is largely through using commodities which we are unable to clarify if and how they drive deforestation - which itself creates a potential reputational risk. Building on the annual CDP reporting process, we are developing a strong picture of where this risk is in our operation. This exercise and resources put into our catering and environment department has contributed in developing the relationship with our caterers and suppliers as we can be more focused and work together to minimise risks. To further mitigate the impact, we work together with our caterers to identify supplies of certified products and assess if we can modify our offering.No riskWhere we use sustainable products we are proud to promote the fact. This enables the airline to raise topics of an environmental nature with its customers and the wider public. It also enables the airline to support companies which supply sustainable products through raising their profile with the airlines customers. Although this has not impact on deforestation, we worked with catering to induce our catering providers to purchase sustainable fish from MSC certified suppliers for some of the dishes we offer on board. These are identified by the MSC logo. We are also working on extending our sustainable sourcing to chicken and eggs.No riskBA is a transport service provider, our sustainability strategy focuses on reducing emissions through fuel efficiency programmes advanced technology and new aircraft. The use of soy as a component of our catering offering to our customers, is proportionally limited and so is the risk of reputational damage; however, the increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'.No riskBA is a transport service provider, our sustainability strategy focuses on reducing emissions through fuel efficiency programmes. The use of soy as a component of our catering offering to our customers, is proportionally limited and so is the risk of reputational damage; however, the increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'.
342014British AirwaysUnited KingdomBiofuelsYesAt BA we do not use jet biofuel yet as it is not commercially available; however, in partnership with Rolls-Royce we are testing alternative fuels. A number of sustainability aspects will be taken into consideration including the use of natural resources, energy, waste and by-products. The project uses the standards established by the Roundtable on Sustainable Biofuel. In addition we are working in partnership with Solena to build the first biojet fuel plant that will convert waste into biofuel. By using waste, the project will help to reduce the amount sent to landfill and will not have any impact on food stock. For ground vehicles identifying the makeup of our fuel content is currently highly challenging, working to identify the content is the next step.No riskJet fuel is very tightly monitored and quality controlled and has to meet strict regulatory requirements - these related to operation regulation rather than deforestation related regulationsNo riskBA is a transport service provider, our sustainability strategy focuses on reducing emissions through fuel efficiency programmes. However, the increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'.No riskBA is a transport service provider, our sustainability strategy focuses on reducing emissions through fuel efficiency programmes avanced technology and new aircraft. However, the increasing public awareness of environmental issues means using products/services that may lead to deforestation is becoming less acceptable. Knowingly using such products is also against BA's aspiration to 'Set the standard for responsible aviation'.
352014Burberry GroupUnited KingdomTimberPartialDue to concern regarding the presence of illegally traded timber on the EU market, Burberry has mapped its timber-based product portfolio to safeguard its compliance with the EU Timber Regulation. This includes all products manufactured and sold in the course of Burberry's trading and for furniture in our European offices and stores. This mapping exercise was completed in March 2014. As illegally traded wood results in environmental damage, this exercise helped us to indirectly assess our risks related to deforestation and biodiversity loss. In order to safeguard that Burberry does not use any endangered woods or timbers of concern in its products, furthermore Burberry has established a system by which any wood or other plant or animal-derived products must be first approved by the business to identify any concerns or risks in its use and if necessary, restrict its use.Material riskBurberry does purchase timber/wood both for our own use and for use in products. We are affected by EU Timber Regulations. The volumes we buy are relatively small and the market is extremely broad; we have a diverse supply base. We are therefore affected by local regulatory risk in these areas, as changes in any one supply market could be easily compensated for by diverting supply to another. There are some potential global regulatory changes which might affect us (for example changes to CITES or other similar programmes) but we keep these developments under regular review and any such change would have only a very small impact upon the businessMaterial riskBurberry does purchase timber/wood both for our own use and for use in products. We are affected by EU Timber Regulations. The volumes we buy are relatively small and the market is extremely broad; we have a diverse supply base. We are therefore affected by local regulatory risk in these areas, as changes in any one supply market could be easily compensated for by diverting supply to another. There are some potential global regulatory changes which might affect us (for example changes to CITES or other similar programmes) but we keep these developments under regular review and any such change would have only a very small impact upon the businessMaterial riskBurberry does purchase timber/wood both for our own use and for use in products. We are affected by EU Timber Regulations. The volumes we buy are relatively small and the market is extremely broad; we have a diverse supply base. We are therefore affected by local regulatory risk in these areas, as changes in any one supply market could be easily compensated for by diverting supply to another. There are some potential global regulatory changes which might affect us (for example changes to CITES or other similar programmes) but we keep these developments under regular review and any such change would have only a very small impact upon the business
362014Burberry GroupUnited KingdomPalm OilPartialBurberry has worked with The Forest Trust (TFT) to conduct a review of a number of raw materials, including palm oil, to understand supply chain risks and available best practice.Non-material riskReputational riskNon-material riskReputational riskNo risk
372014Burberry GroupUnited KingdomCattle ProductsPartialDue to concerns regarding biodiversity, environmental, operational and reputational risks associated with the sourcing of forest risk commodities, Burberry will not use leather from cattle raised in the Amazon Biome (Amazon rainforest and its related ecosystem). Due to concerns regarding biodiversity, environmental, operational and reputational risks, Burberry will not knowingly source leather from tanneries in Bangladesh and Pakistan. To further supplement the assessment of risks in this area an environmental baseline assessment was undertaken. This detailed analysis enabled the identification of risks and priority areas for the business to focus reduction efforts at a regional, functional and raw material level. Together, cotton and leather represent 57% of CO2e from Burberry's raw materials. Building collaborative partnerships with the suppliers of these materials is therefore critical to achieving Burberry’s goal of reducing the impacts from these key raw materials. Working closely with other luxury brands and the Leather Working Group, Burberry committed to monitoring and improving the environmental management and traceability in its leather supply chain. Burberry has conducted LWG audits in tanneries supplying more than 70% of accessories leather. We are also in the process of mapping areas of water-stress, to assess how it might impact our sourcing of materials, such a leather.Non-material riskThe volumes of leather we buy are relatively small and the market is extremely broad; we have a diverse supply base. We are therefore affected by local regulatory risk in these areas, as changes in any one supply market could be easily compensated for by diverting supply to another. There are some potential global regulatory changes which might affect us (for example changes to CITES or other similar) but we keep these developments under regular review and any such change would have only a very small impact upon the business.Material riskAs a luxury goods brand, Burberry pays close attention to the provenance of its products and the working of its supply chain. We are very aware of reputational risks from these and other similar issues, which could be material. We therefore have extensive controls in place: comprehensive supply chain policies, executive overview, third-party monitoring and monitoring by our own dedicated supply chain team and the use of third party experts. As such Burberry's reputational risks associated with buying forest risk commodities remain the same as in previous yearsMaterial riskThe volumes of leather we buy are relatively small and the market is extremely broad; we have a diverse supply base. The unavailability of leather is unlikely to pose any significant operational risk and this situation remains unchanged from previous years
382014CargillUSAPalm OilPartialIn 2012, Cargill introduced a responsible supply chain assessment tool to help its businesses and customers identify, assess, prioritize and quantify risks and opportunities. Standards used by the tool are adapted from the International Finance Corporation, a division of the World Bank, focused on environmental, social and economic criteria for responsible sourcing across a range of industries. The tool considers risks and opportunities in areas such as resource efficiency, pollution prevention, biodiversity conservation and sustainable management of living resources. The financial materiality of risks and opportunities is assessed by assigning cost and revenue implications based on likelihood and business impact. Compliance with existing and emerging regulation, civil society/NGO action and customer action are some of the risk factors taken into account by the tool. After conducting assessments, the company formulates action plans to mitigate identified risks. Cargill developed and piloted this tool in 2012 and 2013 and to date, has conducted assessments across 17 of its businesses involving 20 customers. Cargill has also engaged The Forest Trust (TFT) to help map its palm oil supply chains and identify and highlight potential opportunities and risks in sourcing regions. During this process, Cargill is engaging its suppliers, conducting on-the-ground assessments and promoting improvements in management practices where needed. The company also collaborated with WWF to undertake an assessment of its palm oil suppliers in Indonesia. The assessment focused on gauging progress amongst our suppliers to implement the principles and criteria established by the Roundtable on Sustainable Palm Oil (RSPO).Cargill’s ability to source palm products due to deforestation-related regulation is not identified as a specific risk in the company’s quarterly or annual financial statements. Cargill acknowledges regulation may impact the company and has built processes that may mitigate risk and create opportunities for the company. Palm-related regulations are factored into Cargill’s business scenario planning process. To understand proposed regulatory changes and their potential impact, the company is actively engaged in the dialogue around palm oil regulations and policies, working closely with trade groups, think tanks and local and national governments and on numerous palm-related policy matters. Sourcing risks associated with regulation are further mitigated by: Working toward the company’s commitment to supply RSPO certified palm oil products; Collaborating with farmers and suppliers to implement sustainable palm principles; Maintaining geographic diversity with its global facilities; and Maintaining an adaptable, sophisticated logistics system.Reputational risk from the production or sourcing of palm products is not identified as a specific risk in Cargill’s quarterly or annual financial statements. Cargill acknowledges reputation may impact the company and has built processes that may mitigate risk. Reputational risks are considered during Cargill’s operational planning. The company’s responsible supply chain assessment tool takes into account risk factors related to civil society/NGO action and customer action. Cargill works to mitigate reputational risks through transparency and engagement with key stakeholders. For example, the company takes food customers and other stakeholders to its oil palm plantations in Indonesia to give them a first-hand look at how it produces palm oil. Collaborations with WWF and The Forest Trust help Cargill map and assess its palm oil supply chain, providing greater transparency to meet its customers’ needs for responsibly sourced palm oil and helping identify areas for improvement.Operational risk from the production or use of palm products is not identified as a specific risk in Cargill’s quarterly or annual financial statements. Cargill acknowledges deforestation may impact the company’s operations and has built processes that may mitigate risk and create opportunities for the company. Cargill’s responsible supply chain assessment tool helps its businesses and customers rapidly identify, assess, prioritize and quantify risks and opportunities. Operational risks related to palm oil are further mitigated by: Working toward the company’s commitment to supply RSPO certified palm oil products; Committing to not plant on high conservation value forests, not develop new plantations on peat land and having a strict no burn policy for land preparation; Collaborating with farmers and suppliers to implement sustainable palm principles; Maintaining geographic diversity with its global facilities; and Maintaining an adaptable, sophisticated logistics system.
392014CargillUSASoyPartialIn 2012, Cargill introduced a responsible supply chain assessment tool to help its businesses and customers identify, assess, prioritize and quantify risks and opportunities. Standards used by the tool are adapted from the International Finance Corporation, a division of the World Bank, focused on environmental, social and economic criteria for responsible sourcing across a range of industries. The tool considers risks and opportunities in areas such as resource efficiency, pollution prevention, biodiversity conservation and sustainable management of living resources. The financial materiality of risks and opportunities is assessed by assigning cost and revenue implications based on likelihood and business impact. Compliance with existing and emerging regulation, civil society/NGO action and customer action are some of the risk factors taken into account by the tool. After conducting assessments, the company formulates action plans to mitigate identified risks. Cargill developed and piloted this tool in 2012 and 2013 and to date, has conducted assessments across 17 of its businesses involving 20 customers. In the Santarém region of Brazil, Cargill only purchases from area farms that have obtained a CAR (Rural Environmental Registry). This means they all have been evaluated by The Nature Conservancy for compliance with conservation laws and have official environmental registration with the state government. Every farm that supplies Cargill’s soy terminal in Santarém is monitored. Satellite imagery and field visits are used to detect any changes to land use. All soy sourced in Brazil is checked against the Brazilian Ministry of Environment list of embargoed areas and the Ministry of Labor list of slave labor (Brazilian Pact for Eradication of Slave Labor). In 2010 Cargill created the 3S Program in Brazil (sustainably sourced and supplied), designed to evaluate the sustainability, compliance with local laws, and practices of farmers supplying the company. The 3S Program sets nine metrics that must have immediate compliance, covering deforestation, slave and forced labor, and other practices. Eight other metrics are controlled annually, and participating farmers must demonstrate progress to remain in the program. These metrics cover work safety, health, lodging, compensation, discrimination, farming processes, seed origin and pesticide use.Cargill’s ability to source soy due to deforestation-related regulation is not identified as a specific risk in the company’s quarterly or annual financial statements. Cargill acknowledges regulation may impact the company and has built processes that may mitigate risk and create opportunities for the company. Soy-related regulations are factored into Cargill’s business scenario planning process. To understand proposed regulatory changes and their potential impact, the company is actively engaged in the dialogue around palm oil regulations and policies, working closely with trade groups, think tanks and local and national governments and on numerous palm-related policy matters. Cargill participates in The Soy Working Group, which works with the Brazilian government to improve compliance with the Forest Code, promote land registration, environmental licensing of rural properties and the implementation of Ecological-Economic Zones. Sourcing risks associated with regulation are further mitigated by: Working with farmers and suppliers to implement sustainable soy farming practices and comply with the Brazilian Forest Code; Maintaining geographic diversity with its global facilities; and Maintaining an adaptable, sophisticated logistics system.Reputational risk from the production or sourcing of soy is not identified as a specific risk in Cargill’s quarterly or annual financial statements. Cargill acknowledges reputation may impact the company and has built processes that may mitigate risk. Reputational risks are considered during Cargill’s operational planning. The company’s responsible supply chain assessment tool takes into account risk factors related to civil society/NGO action and customer action. All soy sourced in Brazil is checked against the Brazilian Ministry of Environment list of embargoed areas and the Ministry of Labor list of slave labor (Brazilian Pact for Eradication of Slave Labor). Cargill works to mitigate reputational risks through transparency and engagement with key stakeholders. In 2013, the company brought together thought leaders from Europe, Brazil and the United States to participate in a “learning journey” focused on addressing soy production challenges and identifying clear, implementable solutions. The four-day session in Brazil involved food and feed companies, retailers, producers, governments, NGOs and academics.Operational risk from the production or use of soy is not identified as a specific risk in Cargill’s quarterly or annual financial statements. Cargill acknowledges deforestation may impact the company’s operations and has built processes that may mitigate risk and create opportunities for the company. Cargill’s responsible supply chain assessment tool helps its businesses and customers rapidly identify, assess, prioritize and quantify risks and opportunities. Operational risks related to soy are further mitigated by: Working with farmers and suppliers to implement sustainable soy farming practices and comply with the Brazilian Forest Code; Participating in efforts to refine the U.S. Soybean Sustainability Assurance Protocol; As a member of The Round Table on Responsible Soy (RTRS), working with other key global organizations to implement criteria for a responsible and sustainable approach to soy production globally; Maintaining geographic diversity with its global facilities; and Maintaining an adaptable, sophisticated logistics system.
402013Catalyst Paper CorporationCanadaTimberYes or 100% third party certified raw materials already achievedCatalyst Paper uses the Forest Stewardship Council (FSC) risk assessment template / requirement to quantify the risk of 100% of the forest fibre it uses to make its products. The Catalyst risk assessment can be found at http://catalystpaper.com/sustainability/environmental-performance/chain-of-custody-and-fibre-certificationNon-material riskTighter regulation reduces the available supply of wood fibre and bark for our facilities.Non-material riskCatalyst does not want to be associated with illegally harvested or controversial fibre. Its important to our customers and Catalyst that all purchased fibre be from sustainably managed forests. Our chain of custody programs help us achieve this goal.Non-material riskPotential market campaign against us or our customers by special interest groups if our fibre is seen as controversial.
412014Catalyst Paper CorporationCanadaTimberYesCatalyst Paper uses the Forest Stewardship Council (FSC) risk assessment template / requirement to quantify the risk of 100% of the forest fibre it uses to make its products. The Catalyst risk assessment can be found at http://catalystpaper.com/sustainability/environmental-performance/chain-of-custody-and-fibre-certificationNon-material riskTighter regulation reduces the available supply of wood fibre and bark for our facilities.Non-material riskCatalyst does not want to be associated with illegally harvested or controversial fibre. Its important to our customers and Catalyst that all purchased fibre be from sustainably managed forests. Our chain of custody programs help us achieve this goal.Non-material riskPotential market campaign against us or our customers by special interest groups if our fibre is seen as controversial.
422013Coop GenossenschaftSwitzerlandTimberYes or 100% third party certified raw materials already achievedNon food screening of the Coop product range. Risk assessment and mitigation of the non FSC certified timber and paper products in cooperation with WWF. The aim was to group all products into three categories: FSC certified, uncertified originating from low risk countries (based on a combination of information sourced at FSC risk register, WWF ratings and Maplecroft country analysis), and uncertified origintating from high risk countriesMaterial riskDeclaration of timber species and origin as legal requirement; being fully implemented until end of 2011 ; EU Timber Regulation expected to be adopted by Swiss Legislator by 2016Material riskVerification of origin of uncertified timber products difficult Material riskSufficient supply from existing, evaluated and accepted suppliers in the long term
432013Coop GenossenschaftSwitzerlandPalm OilYes or 100% third party certified raw materials already achievedInternal working group on sustainable palm oil. Issue monitor. Food screening of the Coop product range. Intense stakeholder dialog with WWF, Greenpeace and EvB. Retailers Palm Oil Group with European Retailers. Analysis of food raw materials with the Coop risk monitor (partially based on Maplecroft data).No riskMaterial riskdeforestation, orang utan, nutrional aspects Material riskquality issues with the IP standard
442013Coop GenossenschaftSwitzerlandCattle ProductsYes or 100% third party certified raw materials already achievedLife Cycle Assessment. Food Screening done. Working groups have been set up. Food screening of the Coop product range. Stakeholder dialog and collaboration with the Swiss Animal Protection and the Swiss research institute ART. Analysis of food raw materials with the Coop risk monitor (partially based on Maplecroft data).No riskMaterial riskCO2, energy, water, animal welfare No risk
452014Coop GenossenschaftSwitzerlandTimberYesAs a first step, Coop identified and recorded the origin of all timber products. This was to comply with new Swiss legislation which demands the declaration of timber species and origin of a defined range of (solid) wood products. And it is forseeable that Switzerland will adopt the EU Timber Regulation in some kind or an other. Based on the identified origins, Coop analysed the entire timber assortment and classified them in three categories FSC certified, uncertified originating from low risk countries (based on a combination of information sourced at FSC risk register, WWF ratings and Maplecroft country analysis), and uncertified originating from high risk countries. All uncertified products with wood originating from high risk countries are then further analysed. Based on net revenues per year, all "risk" articles making 80% of the total "risk revenues" are subject to action to be taken by the purchasing department. The aim is to have a maximum effect. For each of these "risk articles", a commercial evaluation is also made where potential reputational risks are compared with the commercial success of the product.Material riskDeclaration of timber species and origin as legal requirement; being fully implemented until end of 2011 ; EU Timber Regulation expected to be adopted by Swiss Legislator by 2016Material riskVerification of origin of uncertified timber products difficult.Material riskSufficient supply from existing, evaluated and accepted suppliers in the long term
462014Coop GenossenschaftSwitzerlandPalm OilYesInternal working group on sustainable palm oil. Continuous Coop issue monitoring. Regular food screening of the Coop product range. Intense stakeholder dialog with WWF and Greenpeace. Retailers Palm Oil Group with European Retailers. Analysis of food raw materials with the Coop risk monitor (partially based on Maplecroft data). Following risks were assessed: material availability of RSPO supply chain options segregated and Identity preserved, substitution with other oils and the relevant nutritional aspects, biodiversity, social and economic aspects.No riskMaterial riskdeforestation, orang utan, nutritional aspects. Risk of media coverage and NGO campaigning.Material riskSufficient supply from existing, evaluated and accepted suppliers in the long term
472014Coop GenossenschaftSwitzerlandCattle ProductsYesLife Cycle Assessment. Food Screening done. Working groups have been set up. Food screening of the Coop product range. Stakeholder dialog and collaboration with the Swiss Animal Protection and the Swiss research institute ART. Analysis of food raw materials with the Coop risk monitor (partially based on Maplecroft data). These processes cover the potential impact on reputation (farm animal welfare, origin of meat procucts) and environmental and social conditions. Following risks were assessed: alternative production country, where there is no deforestation risk.No riskMaterial riskCO2, energy, water, animal welfareNon-material riskLimited risk; Beef comes mainly from Switzerland; Switching the foreign origins to closer ones (Baltics) takes time
482014Coop GenossenschaftSwitzerlandSoyYesInternal working group on responsible soy. Food screening of the Coop product range. Intense stakeholder dialog with WWF and Greenpeace . Swiss cooperation with involved businesses along the soy supply chain (Swiss Soy Network). Analysis of food raw materials with the Coop risk monitor (partially based on Maplecroft data). Following risks were assessed: material availability of certified soy, risk of GMO-contamination, biodiversity risks, social and economic aspects.No riskMaterial riskUsing soy feed for our Naturfarm Label programm is under discussion because feed is imported and not produced in Switzerland, also deforestation. Risk of media coverage and NGO campaigning.No risk
492014CranswickUnited KingdomTimberPartialReview sourcing policy, identify and evaluate supplier capabilities and customer requirementsNo riskMaterial riskRisk to Cranswick and its customer base where sustainability claims are madeNo risk
502014CranswickUnited KingdomCattle ProductsPartialReview sourcing policy, identify and evaluate supplier capabilities and customer requirementsMaterial riskTraceabilty is a legal requirementMaterial riskHigh levels of media coverage around meat in generalMaterial riskLimited sourcing

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created Jan 27 2017

updated Oct 4 2018

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CDP’s forests program targets the largest companies globally, collecting data on their management of deforestation risk through the lens of key agricultural drivers of deforestation (timber, palm oil, soy, cattle products & biofuels). In 2015, 700 companies are requested to respond to the program. The request is issued on behalf of 298 investor signatories with $19 trillion in assets.
Dataset of risk data from respondents to CDP’s forests program in 2013 and 2014. Includes data on company risk assessment processes, as well as the reputational, regulatory and operational risks they identified. This dataset excludes private responders.
Please note that not all companies report on all forest risk commodities. This may be due to the company submitting a partial disclosure or because only a limited number of the commodities are relevant to their business.

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