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Six major commodities traders, including Cargill Inc and Bunge Ltd, have agreed to a common mechanism to monitor soybean supply chains for deforestation in Brazil's vast Cerrado savannah, according to a statement on Friday. The Cerrado covers roughly a quarter of Brazil's territory, the nation's second-largest biome after the Amazon rainforest. Its plants sink deep roots into the ground, often likened to an upside down forest, forming a major carbon sink whose preservation is vital to the fight against global warming. Companies belonging to the Soft Commodities Forum network that signed onto the agreement to monitor their soy supply chains in the Cerrado include Archer Daniels Midland Co, COFCO International, Glencore Plc's agriculture unit and Louis Dreyfus Company, according to a Forum statement.
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The German automotive manufacturer has revealed plans to further push electric and hybrid vehicles. This decision is in response to stricter emissions tests noting that Mercedes-Benz’s emissions rose by 7% in Europe last year. “On 17 December 2018, the European Parliament and the European Council decided to tighten the CO2 limits yet again: Car emissions are to be reduced by a further 37.5 percent from 2021 to 2030 – a demanding goal,” Daimler stated in a press release. “For Mercedes-Benz Cars, this would correspond to average emissions of 65 g CO2/km per vehicle in 2030 – this would amount to consumption of 2.4 l of diesel or 2.7 l of petrol/100 km.”
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Australian companies are “significantly exposed” to modern slavery in their supply chains, with sectors ranging from finance and mining to healthcare most at risk, an influential group representing some of the country’s biggest investors said. Australia last month became only the second country in the world to bring in an anti-slavery law, requiring large companies to report on modern slavery risks in their supply chains. In a report published on Thursday, it called on investors to apply pressure on companies to ensure meaningful reporting, saying slavery threatened shareholder value in addition to its devastating human impact.
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The EU will continue to denounce human rights violations and abuses wherever they are committed, to call on states and non-state actors to prevent them and bring them to an immediate end, as well as to seek justice and accountability. The EU will use all available tools and fora to fulfil its commitments to human rights and promote human rights globally, including in the framework of the United Nations Human Rights Council, the United Nations General Assembly, the United Nations Security Council and any other relevant fora, consistent with the EU Treaty and the UN Charter.
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Sustainability is growing far beyond individual products and is spreading to “encompass the entire product lifecycle” in what will be a key trend in the coming year, according to Mintel. In a report, Global Food and Drink Trends 2019, Mintel highlights the momentum for more sustainable approaches to business, fuelled by increasing awareness and demand from consumers. “A circular view of sustainability that spans the entire product lifecycle requires action from suppliers to consumers,” the report said.
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Walt Peterson, Nestlé's manager of packaging innovation and sustainability, talked about the world's largest food and beverage company's ambitious goal of moving to 100% recyclable or reusable packaging by 2025. Among its sustainability actions, Nestlé is championing reusable packaging through the new Loop circular shopping platform, set to launch this spring in Paris and the New York area.
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Retailers are missing out on gaining full control of their supply chain, according to new research released on Feb. 13 from Gravity Supply Chain Solutions. Eighty-five of U.S. retailers haven’t completed the digitization processes (using a cloud-based platform with real time visibility, and automation capabilities). “Clearly, the supply chain is the final frontier of retail digitization, and while retailers are anxious about the cost, not moving from manual spreadsheet-based supply chain management towards digitized processes could cost them a whole lot more.” says Graham Parker, CEO of Gravity Supply Chain Solutions.
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Sustainalytics has placed Rabobank at the top of the sustainability rankings for major banks. This means the bank received the highest score for how it applies Environmental Social Governance (ESG) data in its services and approach to risk. Sustainalytics has concluded that the risk of Rabobank incurring financial damage due to environmental and social policy is negligible.
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Athens is planning a pilot procurement scheme that aims to ensure all goods and services bought by the local government are free of forced labour. Mayor of Athens Georgios Kaminis said a plan would be developed including concrete steps such as grievance mechanisms, capacity building, mapping of suppliers, and risk assessment and management to eliminate human trafficking from government supply chains. A pilot project will then take place from January 2020 to December 2021. The plan, which will involve consulting procurement experts, suppliers and law enforcement, was announced during a conference in the city focused on the prevention of human trafficking in supply chains.
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As reported by German newspaper TAZ (“Die Tageszeitung”) on 10 February 2019, the German Federal Ministry for Economic Cooperation and Development (BMZ) has drafted an as of yet unpublished law on mandatory human rights due diligence for German companies and their supply chains. According to TAZ, the draft text dated 1 February 2019 lays out in detail the human rights responsibilities of German companies with regard to subsidiaries and contractors abroad as well as containing proposed changes to the Commercial Code.
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A blockchain platform has been launched by WWF-Australia to trace products throughout supply chains. WWF-Australia has partnered with BCG Digital Ventures (BCGDV) to create OpenSC, which tracks food and products and enables businesses and consumers to avoid produce linked to environmental damage and unethical practices such as slavery.
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The European Union produced 17.5 percent of its power needs from renewable sources in 2017, while 11 of the bloc's 28 members had already achieved a 2020 goal of 20 percent or more, the latest data released by Eurostat showed.
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Ford is preparing to use blockchain technology to trace supplies of cobalt — a key ingredient for electric car batteries — in a bid to clamp down on labour exploitation. The US carmaker has teamed up with Korean battery company, LG Chem, and China’s largest cobalt producer, Hayou Cobalt, for the pilot. The project will be conducted at Huayou’s industrial mine site in the Democratic Republic of Congo (DRC) and will ensure that the in-demand mineral has been ethically sourced.
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Almost a decade after Norway signed a $1-billion deal with Indonesia to help protect its tropical forests, the first payment for reduced emissions will be made after deforestation rates fell, environmentalists and government officials said. Indonesia imposed a moratorium on forest-clearing under the 2010 climate deal, with payments linked to the Southeast Asian nation's progress on lowering planet-warming emissions from felling trees, which release carbon when they rot or are burned.
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UK politicians have called on the Government to change the law to require fashion retailers to perform due diligence across their supply chains and have recommended tax breaks for companies that comply with environmental and social standards – while at the same time, punishing firms that don’t.
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Through its new UK contact lens recycling scheme, the ACUVUE Contact Lens Recycle Programme, Johnson & Johnson Vision and its partner TerraCycle are looking to drive real change in consumer behaviour. According to recent research carried out by Johnson & Johnson Vision, over two-thirds (70 per cent) of consumers are confused about the types of household items they can recycle. And it seems a similar confusion exists among wearers of contact lenses: the research found that over a third (39 per cent) of users aren’t sure or believe they can’t recycle lenses.
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Amazon pledged to achieve carbon neutral shipments by 2030 in a blog post written by SVP of Worldwide Operations Dave Clark published Monday. Steps toward this new target, deemed "Shipment Zero," along with information regarding "Amazon’s company-wide carbon footprint" will be released later in the year, according to Clark. In the meantime, the company has "200 scientists, engineers, and product designers dedicated exclusively to inventing new ways to leverage our scale for the good of customers and the planet." "With improvements in electric vehicles, aviation biofuels, reusable packaging, and renewable energy, for the first time we can now see a path to net zero carbon delivery of shipments to customers, and we are setting an ambitious goal for ourselves," wrote Clark.
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Tate & Lyle has launched an investigation into the sustainability of its stevia supply chain. The company said independent non-profit Earthwatch would carry out the inquiry, which “aims to identify steps to ensure that as the stevia market grows, sustainable growing practices are embedded consistently and socio-economic benefits are maximised”. Tate & Lyle sources its stevia, a low calorie sweetener, in China, as does its partner Sweet Green Fields. According to Earthwatch, around 90% of the world’s stevia production is grown in China.
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Verizon issued $1 billion in green bonds on Friday, and it plans to use the proceeds to fund various sustainability initiatives including renewable energy, green buildings, energy efficiency, and sustainable water management. Verizon anticipates that a majority of the funds will be allocated within three years.
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Mislabelling of fish is taking place throughout the supply chain in Canada, according to a report. Researchers at the University of Guelph in Canada found that almost a third (32%) of fish samples analysed were mislabelled. Using DNA barcoding, researchers examined over 200 fish samples, collected from various retailers, processing plants and importers throughout Ontario to analyse where mislabelling of fish is most commonly happening within the supply chain.
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The EU Non-financial Reporting Directive which came into effect in 2018 requires large companies and financial corporations to disclose information regarding their impacts on society and environment. Civil society has however criticised that the EU Directive fails to specify in sufficient detail what information is to be disclosed. To address this, the Alliance for Corporate Transparency project aims to assess how European companies are implementing the requirements.
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Accused of being complicit in not only deforestation but also related human right abuses, the EU and its members are keen to reduce the impact of their commercial activities. The aim of France’s new strategy, announced in November, is stated on the French government’s official website as, “To encourage every actor (producers, businesses, investors and consumers), to change their practices in order to reduce deforestation.” A handful of planned measures are listed, too, including 60 million euros ($69 million) per year in “development aid” to help exporting countries and regions offer more sustainable produce, tackle deforestation and implement reforestation projects.
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KFC has pledged that all its plastic-based packaging that reaches the consumer will be recoverable or reusable by 2025. The chain said the goal supported its long-term plan to implement a more sustainable packaging strategy in its restaurants by developing and using sustainable packaging options and eliminating plastic packaging items.
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Tesco and Carrefour are to pilot refillable containers in their stores as part of an initiative designed to change the world’s reliance on single-use packaging. The containers are part of the “Loop” programme developed by TerraCycle and consumer product companies including PepsiCo, Unilever, Mars Petcare, The Clorox Company, The Body Shop, Coca-Cola European Partners, Mondelez International and Danone. Carrefour said it would initially test the system in France but it plans to sell around 20 products, such as honey, oil and spices, in returnable containers.
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Applying sensor technology to the food supply chain to increase traceability could reduce food waste by between 5% and 7%, according to a new report from the World Economic Forum (WEF). WEF said 35% of fruits and vegetables are lost or wasted in post-harvest, processing or distribution in Sub-Saharan Africa. That number goes down to 15% in Europe, highlighting differences around the world. Enhanced food supply chain traceability will make it easier to identify where losses are occurring, so the issues can more quickly be addressed. "Once the primary causes of food loss and waste have been identified ... the appropriate stakeholder can better address the problem," the report said.
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