LDC denounces deforestation and agri-conversion of natural habitat in its supply chains

11 Feb 2022 --- In a recent spate of companies committing to eradicate deforestation from its supply chains, Rotterdam-based Louis Dreyfus Company (LDC) has joined the ranks of industry giants who pledge to improve global food systems.

Along with its anti-deforestation commitment, LDC will eliminate the practice of converting native vegetation to agricultural land from its supply chains by the end of 2025.

“Ensuring sustainable agriculture and food production are among the world’s most pressing global challenges, and our commitment to zero deforestation and conversion of native vegetation is essential in addressing these challenges,” says Michael Gelchie, LDC’s CEO.

Commodities with a conscienceRecently LDC stated its intention to conserve forests for commodities such as coffee, palm and soy. 
In recent years, LDC established a Carbon Solutions Platform and product-specific sustainability codes and policies stipulating its intention to conserve forests and native vegetation for commodities such as coffee, palm and soy. 

The company’s renewed commitment to its biodiversity, conservation and decarbonization targets aims to build on the initial strategy. The company’s value chain spans commodities such as grains & oilseeds, coffee, cotton, juice, rice and sugar.

“Eliminating deforestation and native vegetation conservation associated with agriculture is among the most significant contributions we can make to the world's 1.5°C Paris Agreement target to limit global warming,” explains Gelchie.

The commitment is a key step in LDC’s efforts to contribute to a net-zero economy via a decarbonization roadmap that includes action to drive down emissions within its own operations as well as value chains – in this case upstream, at the farm level.

“To achieve our target, we believe in a collaborative approach that takes into account the needs and concerns of all supply chain participants, particularly farmers, on whose production activities we all depend for global food security, and whose methods are key to the conservation of natural resources and habitats,” says Gelchie.

Risk assessments underway
The following step toward implementation of LDC’s decarbonization targets is risk assessment across supply chains with a focus on regions with higher deforestation and conversion risks.

“This commitment is aligned with our track record of transparency and public reporting on supply chain risks and efforts to mitigate these, which we feel will be complemented by a commitment to complete avoidance of deforestation and native vegetation conversion with a clear timeline,” says Guy Hogge, LDC’s global head of sustainability. 

The growing body of policymakers, consumer goods companies, the financial community, and other stakeholders who are making similar commitments have influenced the company’s decision to take the step to eliminate all deforestation.Coffee is a labor intensive crop that requires reconceptualization around conservation. 

LDC will use product traceability, land use monitoring and third-party verification, to achieve its target as well as support suppliers and farmers in its network.

Industry moves for the environment
FoodDrinkEurope commissioned a report in 2021 detailing how the EU food manufacturing industry can play its part in reaching net-zero carbon emissions by 2050. It states that food production from farm-to-fork represents 30% of total carbon emissions within the EU, with the manufacturing process accounting for 11% of this share, or 3% of the total.

The company’s Brussels office was awarded carbon neutral status. The move was in line with a long line of industry actions that were taking place to tackle climate change.
EIT Food, a food “innovation ecosystem” set up by the European Institute of Innovation & Technology (EIT) entered a partnership with the new European Carbon+ Farming Coalition. 

The coalition, established by the World Economic Forum’s CEO Action Group for the European Green Deal set out to decarbonize the European food system, while maximizing other benefits such as soil health, farmer resilience and biodiversity.

By Inga de Jong