Policy Analysis & Benchmarking

Date
Continuous/ongoing
Target Audience
NGOs, companies
Commodities
Leather, Minerals/Metals, Beef, Palm Oil, Cotton, Soy
Partners/Clients
Rainforest Foundation Norway, Banks, Ceres-Moore

AidEnvironment develops benchmarking and comparative assessment studies on the policies, implementation, and disclosure practices by companies and similar actors operating in sectors linked to raw materials’ extraction and commodity production.

Challenge

Several sectors have been late in making commitments and establishing sustainability and zero deforestation policies aimed at promoting responsible practices in commodity supply chains. For instance, only a few companies from the automotive sector acknowledge leather as a deforestation risk commodity even though Europe has been the destination market for one-third of the bovine leather produced in high-risk deforestation areas in Brazil. Benchmarks or scorecards are important instruments to identify best practices and remaining gaps. This allows to pressure laggard companies and industry sectors to take meaningful action towards the improvement of their socioenvironmental standards, while also facilitating a comparative analysis based on performance and outcomes.

Approach

AidEnvironment has in-house capacity and experience in developing benchmark studies linked to various sectors and raw material supply chains, including leather, minerals/metals, soy, beef, and cotton. This involves the assessment of policies/commitments and actions implemented by companies through indicators defined in relation to the risks and issues under scrutiny, such as deforestation, human rights issues, and/or biodiversity impacts, and following recognized standards and guidance on best practices.

15
companies in the automotive supply have been engaged by the Investor Working Group for a Deforestation-free Automotive Industry, considering in particular their leather supply chains. In response, at least Lear Corporation and Adient have revised or adopted a deforestation policy
19
companies in the automotive and EV battery manufacturing sectors have been assessed and engaged in regard to the policies and due diligence conducted in their mineral supply chains
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The broken links of mineral supply chain policies in the Electric Vehicle industry

There is a concerning lack of social and environmental commitments in mineral supply chains across EV battery producers and automakers. Many key players lack adequate policies and measures to protect biodiversity, respect indigenous rights, and prevent deforestation in mineral supply chains, as our report shows.

Read the report here.

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Automotive industry is not doing enough to mitigate deforestation risks

The automotive industry does not do enough to mitigate its deforestation risks. While some companies have recently adopted zero-deforestation measures, all fall short of best practices, as our leather benchmark demonstrates.

Find the benchmark here.

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Can we better eat almonds or cashew nuts?

In collaboration with IUCN NL, AidEnvironment has developed and published a practical guide on responsible plant-based value chains. It includes a series of fact sheets comparing 16 different value chains on several environmental and social risk indicators.

Read the guide here.

Want more information on this project?
Sarah Drost
Senior Researcher Deforestation-free supply chains
Want more information on this project?
Valerie de Vries
GIS analyst Deforestation-free supply chains