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Canada - forestry
This is a filtered view based on 2014 - Forests Risk Assessment.
| Row number | Year | Organization | Country HQ | Forest Risk Commodity | Forest Risk Assessment | Forest Risk Process | Regulatory risks - Risk Present | Regulatory risks - Further Details | Reputational Risks - Risk Present | Reputational Risks - Further Details | Operational Risks - Risk Present | Operational Risks - Further Details | Water 2014 - Number of drivers |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 351 | 2014 | Woolworths Holdings Ltd | South Africa | Palm Oil | Yes | Our risk assessment process evaluates the following: Operational risks: We have assessed the level of consumption across the business and identified that Woolworths is not a major user of palm oil. As palm oil has unique qualities that meet safety, health, taste, shelf-life and rancidity requirements, however, suppliers find it difficult to substitute palm oil and therefore we are reliant on having a secure supply of palm oil. Security of supply: The current difficulty we face in securing physical supply of the limited amount of certified sustainable and traceable palm oil available globally is a risk to our business. We have also identified that continuing to support unsustainable palm oil production and environmental degradation, poses threat to long term security of supply. For now, we will have identified the value of purchasing GreenPalm certificates to help the RSPO incentivise more sustainable production and therefore mitigate these risks, until we are able to physically source certified sustainable palm oil. Environmental and social risks: This includes deforestation, biodiversity loss and species extinction, environmental degradation, land conflict and displacement, and social conditions. Whilst we are not major users of palm oil, we have identified that we can make considerable impact in mitigating these risks by using certified sustainable palm oil in our products, particularly because of the pressure it will put on other larger users of palm oil in South Africa. Reputational risks: With increasing pressure from consumers, NGOs and activists on the issue of deforestation, we have identified that this is a risk to our reputation. Our purchase of GreenPalm Certificates and commitment to physically sourcing certified sustainable and traceable palm oil has helped reduce reputational risk to a degree, but we recognise that this is not enough. Regulatory risks: Currently we are not required to use a certified sustainable palm oil, but we need to consider sourcing impacts should this become legislated. A recent change in South African food legislation around labelling has meant that we now need to declare the type of oil used in the ingredients panel of food products. This encourages transparency, but does lead to further reputational risk as consumers become more aware of palm oil in their products. | No risk | There is currently no legislation in place that affects our ability to continue sourcing palm oil, only legislation around packaging labelling that has increased transparency as to which products contain palm oil. | Material risk | With increasing media coverage, NGO and activist campaigns, business exposes, social media campaigns and consumer pressure around palm oil and deforestation, there are huge reputational risks for our business. As a leading sustainable retailer, we have already received a lot of criticism on our use of unsustainable palm oil and are expected to lead on this issue and set an example for other retailers in South Africa. We are reliant on being able to gain access to a supply of certified sustainable palm oil as well as the credibility of the sustainability standards and certification bodies that we work with, and their support from NGOs, activists and consumers. | Material risk | Whilst we are not major users of palm oil, we rely on palm oil, due to its unique qualities, we are reliant on palm oil for a wide range of foods and non-foods products. We have identified that palm oil is difficult to substitute, and possible alternatives come with their own sustainability challenges (e.g GM). Therefore an inability to source sufficient quantities of palm oil would undermine our product development and offering, and competitiveness. | |
| 352 | 2014 | Woolworths Holdings Ltd | South Africa | Cattle Products | Yes | Our risk assessment process evaluates the following: Operational risks: We have assessed the level of consumption across business and have identified that we use a large volume of cattle based products in our supply chain. We do have full traceability when it comes to our food products however, which reduces this risk significantly (all beef and dairy products are sourced from farms in South Africa, Namibia and occasionally Botswana, areas where we know there is no clearing of forest land for farming). We have identified that our risk lies heavily with our leather based clothing, footwear and accessories, where we rely on large amounts of leather and do not have access to large amounts of South African leather or traceability back to point of origin. We have identified that we need to collect consumption data as a first step to being able to understand our operational risks better. Security of supply: We have identified this as a potential risk, when it comes to leather, and have identified need to help increase the supply of South African leather, but still need to do further work to understand this risk. Environmental and social risks: This includes deforestation, biodiversity loss and species extinction, environmental degradation, animal welfare, land conflict and displacement, and social conditions. We have identified that we can make considerable impact in reducing these risks due to the large volume of leather we source across the business. In the area of food products, we can help farmers develop more sustainable farming practices. Reputational risks: With increasing pressure from consumers, NGOs and activists on the issue of deforestation, we have identified that this is a risk to our business. Regulatory risks: We need to ensure that we comply with legislation and are prepared for changes in legislation that may impact our supply chain. | No risk | There is currently no legislation in place that affects our ability to continue sourcing leather. | Material risk | With increasing media coverage, NGO and activist campaigns, business exposes and consumer pressure around the issue of deforestation, there are huge reputational risks for our business should we be found to be contributing to deforestation. | Material risk | As we rely on leather for a wide range of clothing, footwear, accessories and homeware products across our business, an inability to source sufficient quantities of leather would negatively impact product development and competitiveness, as well as undermine our strategic goal of becoming a leading fashionable retailer in the Southern Hemisphere. No risk for beef and dairy products as these all come from South Africa, Namibia and Botswana. | |
| 353 | 2014 | Woolworths Holdings Ltd | South Africa | Soy | Yes | Our risk assessment process evaluates the following: Operational risks: We have assessed the level of consumption across our business and identified that whilst we do not use a large amount of soy in our products, we indirectly consumer large amounts of soy for animal feed for livestock. We have large volumes of locally produced soy, and as South Africa is not a major importer of soy, deforestation is not a large risk to the business when it comes to food. When it comes to animal feed; however, we do not have oversight as to where the soy has come from and are therefore at risk here. Security of supply: We need to take into account the availability and cost of required quantities of soy, particularly when it comes to animal feed. We also need to consider accessibility (or lack thereof) of certified sustainable soy. Environmental and social risks: This includes deforestation, biodiversity loss and species extinction, environmental degradation, land conflict and displacement, and social conditions. We have identified that we can make considerable impact in reducing these risks. Reputational risks: With increasing pressure from consumers, NGOs and activists on the issue of deforestation, as well as the issue of Genetically Modified Organisms (GMOs), we have identified that our use of soy is a risk to our reputation. Regulatory risks: We need to ensure that we comply with legislation and are prepared for changes in legislation that may impact our supply chain. | No risk | There is currently no legislation in place that affects our ability to continue sourcing soy. | Material risk | With increasing media coverage, NGO and activist campaigns, business exposes and consumer pressure around the issue of deforestation as well as Genetically Modified Organisms (GMOs) in soy, there are huge reputational risks for our business should we be found to be contributing to deforestation. | Material risk | As we rely on soy for our products as well as animal feed, an inability to source sufficient quantities of soy would negatively impact our supply chain, product development and offering, and competitiveness. | |
| 354 | 2013 | Woolworths Limited | Australia | Timber | Yes or 100% third party certified raw materials already achieved | Assessment of wood and paper based products has commenced in preparation of illegal logging legislation. Risk assessment has been conducted relevant to Woolworths own brand products and the volume, cost, production penetration, reputation risk and supply chain risk. | Material risk | Illegal Logging Prohibition legislation will require greater understanding and transparency of timber and paper product sourcing in the supply chain. The scale of work for compliance is still an unknown. | Non-material risk | Some non-governing organisations and a small proportion of our customers are engaged on forestry impacts but residual risk is minimal due to use and endorsement of forestry certification programs. | No risk | ||
| 355 | 2013 | Woolworths Limited | Australia | Palm Oil | Yes or 100% third party certified raw materials already achieved | Unsustainable palm oil production is a known cause of deforestation in tropical countries. Risk assessment has been conducted relevant to Woolworths own brand products and the volume, cost, production penetration, reputation risk and supply chain risk. | Non-material risk | Proposed legislation on labelling of palm oil as an ingredient is almost redundant due to Woolworths' existing commitment to label palm oil where it is an ingredient in an own brand product. | Non-material risk | Some non-governing organisations and a small proportion of our customers are engaged on palm oil use and labelling, but the residual risk is minimal due to public commitments on sustainable sourcing and palm oil labelling. | Non-material risk | Commitment to sustainable palm oil will require premiums to be paid by suppliers, the business and customers. | |
| 356 | 2013 | Woolworths Limited | Australia | Cattle Products | Yes or 100% third party certified raw materials already achieved | Australian cattle industry is now well-established and is a minimal cause to deforestation in this country. Risk assessment has been conducted relevant to Woolworths fresh meat range and the volume, cost, production penetration, reputation risk and supply chain risk. | No risk | Non-material risk | Risk is related to quality and reliability of supply rather than any deforestation issues. | No risk | |||
| 357 | 2013 | Woolworths Limited | Australia | Biofuels | Yes or 100% third party certified raw materials already achieved | Locally (in Australia) there is minimal risk to deforestation related to biofuels, particularly as Woolworths use a biofuel produced from waste materials. Risk assessment has been conducted relevant to Woolworths' biofuel use volume, cost, reputation risk and supply chain risk. | Non-material risk | NSW mandate on the sale of E10 biofuels is a risk. Although all petrol stations are switching over to E10 unleaded petrol supplies the consumer is then switching to alternative fuel types (e.g. premium unleaded) or purchasing non-E10 standard unleaded from other businesses. | Non-material risk | A step increase in biofuel use globally may impact upon commodity prices and influence costs of goods sold and customer's perceptions of value. | Non-material risk | Ensuring reliability of supply of biofuel made from waste materials. |
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Description
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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