16 Feb BNP Paribas pressures companies to combat deforestation in the Amazon
BNP Paribas presents policies that require companies that produce or buy beef or soybeans from the Amazon and cerrado region to present a strategy that reduces deforestation to zero by 2025.
BNP Paribas aims to combat deforestation in the Amazon and cerrado regions. Therefore, the financial institution only wants to provide financial products or services to companies with a strategy to achieve zero deforestation in their production and supply chains by 2025. BNP Paribas advocates a way of farming that does not include deforestation and leads to sustainable production and a positive social impact.
Deforestation in Brazil
Beef and soybean production in Brazil is accelerating deforestation in the Amazon and Cerrado regions. Sometimes this logging is legal, but legal or not; it endangers the biodiversity of those areas. This is not only bad for the people there, but for all stakeholders: from companies operating there to the banks that finance them. BNP Paribas is one of the foreign banks that are present in the country and has international clients directly involved in agriculture there. With the new policy, the financial institution wants to ensure that its customers take visible action against deforestation.
What does the policy actually mean?
To encourage customers to adhere to the new policy, BNP Paribas requires full traceability of beef and soya by 2025. This means that the bank no longer finances customers who produce or buy beef or soybeans from agricultural land released after 2008 due to deforestation in the Amazon. The bank also encourages its customers not to produce or buy beef or soybeans from land in the Cerrado region that has been cut down or converted after 1 January 2020.
To ensure that customers comply, BNP Paribas requires full traceability of beef and soya by 2025. The company does not want to say how many customers or what part of the portfolio is involved. Finally, BNP Paribas encourages all its livestock farmers to be more animal-friendly, with an eye for the Responsible Minimum Standards of the FARMS Initiative.
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