Bunge has not purchased soybeans from Aliança Agrícola do Cerrado since 2017. Regarding Fiagril, this grain reseller has not supplied soybeans to Bunge from Marcelândia, in the state of Mato Grosso. Furthermore, as a signatory of the Amazon Soy Moratorium, purchases made by Fiagril are audited by independent entities and approved by the Soy Working Group – an organization formed by representatives of the Government, NGOs and Abiove (Association of Vegetable oils Industries). In addition, Bunge’s contracts with suppliers have clauses in which the supplier expressly commits to supply grains in accordance with the applicable legislation, including environmental laws. Bunge has been a signatory to the Amazon Soy Moratorium since it was developed in 2006. In support of our sustainability commitments, this year Bunge launched an unprecedented initiative to monitor indirect sources in our value chains. This program will help partners/grain resellers implement supply chain verification systems, including satellite and farm-scale images. Resellers can adopt independent imaging services or use Bunge’s geospatial monitoring structure at no cost. The initiative is part of Bunge’s global non-deforestation policy with a public and voluntary commitment to reaching deforestation-free value chains worldwide by 2025. This is the most ambitious commitment at our scale in our industry and we will continue to work with all stakeholders to advance deforestation free supply chains.
Bunge reinforces that “As a signatory of the Amazon Soy Moratorium, purchases made by Fiagril are audited by independent entities and approved by the Soy Working Group – an organization formed by representatives of the Government, NGOs and Abiove (Association of Vegetable oils Industries). In addition, Bunge’s contracts with suppliers have clauses in which the supplier expressly commits to supply grains in accordance with the applicable legislation, including environmental laws.”
We can confirm that we do not source directly from Perinoto or Sotti. In addition, we have firmly upheld the Brazilian Soy Moratorium in the Amazon since 2006, when we partnered with industry and environmental organizations to implement this voluntary agreement to not purchase soy from lands in the Amazon biome that were deforested after July 2008. This effort has contributed to the 80 percent decline in deforestation in the Amazon in the last decade and was extended indefinitely in 2016. We are audited on an annual basis to ensure compliance with the Amazon Soy Moratorium.
Cargill has robust procedures to ensure we are respecting social and environmental restrictions – Slave Labor, Soy Moratorium, Green Grain Protocol and Embargoes (from federal and state agencies). On a daily basis, our system consults government lists of embargoed farms and blocks them so they are not eligible to sell product to us. Our system also consults lists of non-compliant farms based on the Amazon Soy Moratorium, as well as the Green Grain Protocol. When a farm is blocked in our system for being on one of these lists, we also block other farms registered to the same person or entity either in the local area or the entire country, depending on the violation involved. These affiliated farms are only unblocked once we have conducted an analysis to ensure that product from the violating farm is not being rerouted and sold to us through an affiliated operation. We will investigate Fiagril and Aliança do Cerrado in accordance with our soy grievance process.
As a signatory to the Amazon Soy Moratorium, we conduct monthly internal audits as well as annual external audits on suppliers’ compliance with the Moratorium. The 2019 audit confirmed that all our suppliers complied with Moratorium requirements in the past season. Environmental NGOs also review the results of all Moratorium signatories to help ensure transparency and credibility.
In terms of direct vs indirect soy purchases. We only disclose this for the Cerrado Biome as part of our participation in the Soft Commodities Forum:
In relation to the above, here are the COFCO numbers showing that we source 95.9% directly there : https://www.cofcointernational.com/media/1770/scf-december-2020-report-final.pdf