Can Retailers Live Up to Their Soy Commitments Related to Decrease of Deforestation?

By: Trademagazin editor Date: 2022. 08. 30. 08:18

Soy is one of the most prevalent plant-based proteins in the world, often hailed for its health benefits and for contributing to the ecologically sustainable benefits of a plant-based diet. Used globally in the production of meat, dairy and oil products, soy typically conjures up thoughts of milk alternatives and plant-based burgers. However, the not-so-humble soybean is also the direct cause of a great deal of environmental damage, with many soy traders using unethical practices which lead to widespread deforestation.

Soybean is the direct cause of a great deal of environmental damage

The reality is that soy can be found at every level of the human food chain. In fact, around three-quarters of the world’s soy isn’t eaten by humans at all; with 75% of all soy being used to feed cattle and other livestock.

As a major part of the supply chain due to its prolific use in animal feed, much of the responsibility to put an end to soy-related deforestation falls to major grocery retailers, who have the power to ensure suppliers can guarantee the ethical credentials of every part of their supply chain. With so much at stake, we ask what supermarkets are doing to tackle this issue – and is it really enough?

The deforestation dilemma

As demand for the versatile crop has grown, suppliers have increased production. Current cultivation levels have increased by 15 times since the 1950s. Since August 2020 alone, 27,000 hectares of rainforest have been deforested by soy traders across 10 farms including Cargill, Bunge, COFCO, LDC and ALZ Graos. The farms are all located across Brazil’s Cerrado, a location which – along with the United States and Argentina – produces 80% of all soy used worldwide.

While it is possible to produce soy without contributing to deforestation, many supermarket chains are still linked to soy traders and suppliers with unethical practices.

Global advocacy organisation Mighty Earth is joining campaigners and organisations such as WWF and Greenpeace in calling for an end to both legal and illegal deforestation. It has been calling on supermarkets to be completely transparent right throughout their supply chain and to suspend trading with any suppliers still linked with deforestation and conversion.

What are supermarkets saying?

Tesco, Sainsbury’s, Asda and Co-op are all members of the Retail Soy Group, which helps retailers work collaboratively to find “industry-wide solutions for soy for their animal feed and human food supply chains”.

As the UK’s largest retailer, Tesco recognises its responsibility in upholding ethical practices. It has committed to ensure all the soy used for its UK businesses is sourced from regions that can be verified as deforestation-free by 2025.

In July this year, Mighty Earth published the results of its investigation with a report called ‘Promises, Promises’ which highlighted retailers’ aims and outlined any involvement in soy cultivation, at all stages of the supply chain. Tesco said it welcomed the findings in the report, adding that “where the traders concerned are known to be present in our supply chains, we have asked them to investigate and take appropriate action, including immediate suspension of supply from farms that have caused deforestation”.

As the UK’s second largest supermarket, Sainsbury’s has also committed to the 2025 target to achieve 100% deforestation and conversion-free soy supply chains. A spokesperson for Sainsbury’s said:

“We are committed to ensuring our products are sourced sustainably and take this extremely seriously. At COP26 we committed to ensuring none of our own-brand products will contribute to deforestation or conversion of ecosystems by 2025 with soy one of the highest priorities in achieving this commitment.

The Big 4 grocer has asked its suppliers to adopt a deforestation-free policy that covers their entire operations. Suppliers have also been asked to improve the traceability of any physical soy used, ensuring it is deforestation and conversion-free as Sainsbury’s looks to deliver real supply chain visibility.

Asda and Co-op also share similar targets, with both retailers committing to eradicating soy-related deforestation from their supply chain by the 2025 deadline. Asda is a member of the Roundtable for Responsible Soya, which is supported by UK Government and offers financial incentives for soya farmers to encourage sustainable production methods.

Co-op also stated that it is “committed to 100% deforestation and conversion-free soy” in its supply chain by 2025, and is working with suppliers to achieve this. The retailer also works with the UK Roundtable on Sustainable Soy and the Retail Soy Group and is a signatory to the UK Soy Manifesto, which “works across the supply chain to develop improved monitoring, reporting and verification systems to support and achieve the ambition for deforestation and conversion-free soy.”

Mighty Earth’s response

Following its ‘Promises, Promises’ report, Mighty Earth is continuing to put pressure on leading retailers to go further in tackling this issue, saying there is more that supermarkets can do. As the largest and most influential retailer in the UK, Tesco has been the subject of much of Mighty Earth’s focus.

“More than a decade since Tesco pledged to be deforestation-free, only a fifth of its South American soy is certified,” Mighty Earth UK director, Gemma Hoskins told Grocery Gazette. “The clock is ticking with only two years left for Tesco to meet its public commitment of 100% zero deforestation in its supply chains.”

Hoskins pointed out that Mighty Earth’s recent report found 27,000 hectares of deforestation linked to Tesco supply chains. Despite this, the supermarket has “failed to take any meaningful action against traders who continue to clear huge swathes of the Cerrado biome in Brazil, leaving it complicit in that deforestation”.

Despite Tesco’s goal of 100% zero deforestation being some way off, the Big 4 grocer has confirmed that it now requires all suppliers with soy footprints over 250 tonnes to share their roadmaps to deliver verified deforestation and conversion-free soy to Tesco, in line with its 2025 commitment.

What more can supermarkets do?

The need for change is clearly acknowledged by UK supermarkets, with organisations such as Mighty Earth continuing to keep the pressure on as they urge retailers to suspend any suppliers known to contribute to deforestation.

Ensuring the suppliers themselves switch to deforestation and conversion-free soy cultivation is another issue all together – one which needs all stages of the supply chain to be working together if it is to make any difference at all.

Ultimately, until legislation in Brazil changes, and makes it a legal requirement for soy traders to use better production practices, the issue is unlikely to go away.

Grocery Gazette