Soybeans

In 2018, we launched our global Soy Sustainability Policy, detailing our commitment to work with all our supply chain stakeholders to prevent conversion of native vegetation in areas of high ecological value, and reinforcing our ‘No Deforestation, No Peat, No Exploitation’ commitment.

In 2019, we shared this global soy policy with all our major suppliers operating in areas deemed to be at high risk of deforestation, and pursued policy communication in 2020 to reach suppliers in all regions where we operate.

Mapping supply chains being crucial to ensure traceability for direct sourcing activities, in 2020, we increased the number of direct suppliers mapped in Brazil and Argentina, mapped land use dynamics in northern Argentina and mapped our sourcing profile in Paraguay.

We are working alongside The Nature Conservancy  (TNC) to improve our risk analysis tool and provide incentives for producers not to expand cultivation over Gran Chaco native vegetation, such as a premium for sustainable soy and credit lines with low interest rates. 

Traceable Supply Chains

Using open-source data, we also mapped the current state of Paraguayan deforestation, our conclusion so far being that Paraguay’s soybean production has a 75% low-risk and 24% medium-risk deforestation profile since 2004.  

In 2020, we mapped approximately 90% of Argentine soy suppliers through the elevator channel, focusing on the Campo Largo area (Gran Chaco). This mapping identified areas of native forest, any recent deforestation and legal categorization of land.

Thanks to extensive certification programs in Argentina, more than half of soy volumes that enter our General Lagos plant can be traced back to farms.

Certified Soy

Working with TNC, we have also improved the risk analysis tool we use and hope to implement it for all farms in Argentina and Paraguay in 2021.

Going forward, we will carry out the same mapping and risk analyses in Uruguay and Paraguay, and extend land-use dynamics mapping beyond our current sourcing areas in Argentina, to seek solutions that avoid deforestation. Our targets have been amended accordingly.

Biodiesel and Soybean Oil Markets

Our significant 2BSvs and International Sustainability & Carbon Certification (ISCC-EU) programs to provide certified sustainable biodiesel and other soy derivatives require:

• that production of biofuel feedstock does not take place on land with high biodiversity;
• that land with high carbon stock has not been converted for biofuel feedstock production (since the cut-off date of January 1, 2008);
• traceability and chain of custody, mass balance throughout the supply chain; and
• that biofuel production leads to sufficient greenhouse gas emissions savings, as defined by the EU.

Due to the impacts of Covid-19, decreased fuel usage led to reduced certified biodiesel sales. In response, we are trying to increase the number of destinations we reach with our products.

Partnerships for Sustainability

Soybean, Soybean Oil and Soybean Meal Markets

In 2020, we obtained chain of custody certification for our facilities in:

• Argentina: Timbúes and General Lagos
• Paraguay: C.A.I.A.S.A, Trociuk and Santa Maria

In 2020, we made our first purchases and sales of RTRS-certified soy in Paraguay, established our own third-party verified, deforestation-free soybean meal supply chain in Argentina, and brokered our first sales of this certified non-deforested Argentine soybean meal, which began shipping in early 2021.

We are extending the same scheme for third-party verified, deforestation-free soybean meal in Paraguay and Brazil in 2021.

In our 2019 sustainability report, we expressed an ambition to purchase 300,000 MT of deforestation-free soybeans annually in Paraguay from 2022. However, as most soy is not sourced directly from producers, we will have to amend this goal.

In Argentina, we remained part of several collaborative efforts to prevent soy sourcing from protected areas in the Gran Chaco:

• Vision Sectorial del Gran Chaco (ViSeC), a multi-stakeholder initiative addressing soy production and conservation in the Argentine Gran Chaco, through which LDC and other members of Argentina’s Edible Oils  Association (CIARA – Cámara de la lndustria Aceitera de la República Argentina) are working with the public sector to comply with National Forestry Law, and to create sectoral plans for a collective commitment to achieve deforestation-free chains.
• TNC, which is helping us create a solution to monitor areas of high biodiversity, identify where deforestation is taking place for soy, and create incentives that could alter producer behavior. The initial focus is on the Argentinian region of the Gran Chaco.
• The Argentine Carbon Neutral Program, working to certify Argentine export products and, alongside other industry players in Argentina, to set a default greenhouse gas emission standard for Argentine soybean cultivation.

In Paraguay, we similarly remained a participant in several programs and associations, including:

• The United Nations’ Green Commodities program, until it ended in 2020, offering a merchant’s perspective on industry issues and helping to promote sustainable practices.
• The Paraguayan Chamber of Oilseeds Processors (CAPPRO – Cámara Paraguaya Procesadores de Oleaginosas). In 2020, thanks to a US$40,000 grant administered by CAPPRO, two cooperatives were certified as sustainable producers, with another three due to be certified in 2021.