News in brief: Barclays has announced a new policy that tightens deforestation rules among its clients in the beef sector. The move is in line with action calls from environmentalists but seen as not enough.
British universal bank, Barclays, has unveiled a new policy aimed at keeping deforestation in check for its clients in the beef sector.
According to a Reuters report, the bank will require borrowers not to perform production or primary processing on areas in the Amazon cleared or converted after 2008. In addition, they have to commit, both directly and indirectly, to a deforestation-free South American beef supply chain by 2025 in areas at high risk of deforestation. These areas include the Amazon, Brazil’s Cerrado and the Chaco biomes.
This is not all. Barclays wants its clients commitment efforts to be fully traceable. They would have to monitor, verify and report on deforestation-free beef volumes by December 2025. Also, the companies should have a policy that their operations and supply chain respect human rights.
In a statement, the bank has stated that it does not want clients in any sector, be it soy, palm oil, timber or forestry, that are involved in illegal activities. It said this included illegal deforestation, logging, or using violence to take over land.
Illegal deforestation in world’s agriculture capital
Brazil recorded 39% year on year increase in deforestation between August 2022 and March 2023. Given its position as a top exporter of agricultural products, several large investments are put into agro activities around the country.
Many companies carrying out these activities sometimes overstep in the bid to meet demand and generate more revenue. JBS, the largest meat processing company in the world, and a Barclays client, has been accused of illegal deforestation.
The bank’s new policy appear to be a step in the right direction. Although, not many activists agree in its effectiveness. One such person is Gemma Hoskins, Mighty Earth’s UK Director.
“The policy does not include sufficient processes to be able to catch, monitor or verify any cases that donât comply and ultimately they are asking for the companies to do the monitoring, reporting and verifying themselves,” she said.
Agriculture’s importance to the health of nations and stability of international trade is well known. However, this has made it easy for large scale producers to overlook the impact of their activities on the environment.
