Cross-cutting issues for the soy sector
Estimating the embedded soy footprint of animal-based products
This discussion paper allows downstream companies to understand their exposure to soy and to prioritise products and suppliers for further engagement to ensure soy sourcing commitments are met and responsible soy policies are being followed.
It presents the general steps and resources available, as well as practical examples of how to estimate your company’s soy footprint and how to use the results of this analysis for positive actions.
Key points
Soybean meal is an ingredient widely used as protein in animal feed diets. It is therefore embedded in animal proteins such as meats and farmed seafood, as well as animal products, such as dairy and eggs.
Downstream companies sourcing animal products can assess their exposure to soy by calculating the soy footprint of these products, along with the footprint from other soy-derived food products including cooking oil, baked goods, confectionery, salad dressings, etc.
The calculation can be done using conversion factors from the literature, that gives an approximate amount of soy consumed from feed by each animal per kg of animal product, e.g., meat, egg or milk etc, or by taking a more comprehensive approach that accounts for the differences in supply chain structure and production systems.
The soy footprint results can be used by downstream companies to prioritise products, suppliers and actions where the footprint from high deforestation risk origins is greater. It allows for more effective strategies to ensure responsible soy sourcing commitments are met.
Deforestation Risk in the Brazilian Soy Supply Chain
This brief was prepared to help investors understand, identify and address Brazilian soy-related deforestation risks in their portfolios. It is a collaborative effort of the Emerging Markets Investors Alliance (the "Alliance") and the Soy Toolkit.
Key points
The boom in the livestock industry – where 75% of soy is used as feedstock – has led to rapid growth in global soy production. Most of this growth in production has come from South America, where part of the land cultivation has expanded into forests, savannahs and grasslands.
Brazil overtook the United States as the world’s largest soy producer in the 2019/2020 crop year after growing its soy production 78% in the last decade. Brazil is also the largest exporter of soy globally, commanding 56% of the soybean trade and 25% of the soymeal trade. China and the European Union are the largest importers of Brazilian soy and soymeal respectively.
Soy is considered by some research the second largest driver of deforestation globally. Half of Brazil’s soy production comes from the Amazon and Cerrado biomes, two of the most threatened biomes in the world. The deforestation cycle includes drivers such as land speculation, land grabbing or illegal lodging, on top of commodity production – which might end up happening on land cleared initially due to other drivers.
Working at scale to implement soy sourcing policies
This paper provides an overview of how soy buying companies can engage with at-scale initiatives (whether at a landscape or jurisdictional level, see more below) for implementing their responsible sourcing commitments. At-scale initiatives are emerging as means to help companies address the underlying causes of many complex issues, including deforestation and human rights issues. They can be linked with companies’ policy implementation efforts and build on multiple stakeholders’ actions in a given geography. The paper presents initiatives happening in Brazil, which can cut across more than one element of the Soy Toolkit’s 5-element approach.
Key points
The purpose of at-scale initiatives is to work collaboratively on complex issues beyond individual supply chains at the appropriate scale of intervention.
After selecting a landscape to act in, companies should identify and analyse existing initiatives in order to decide which ones help deliver on the company’s commitments and how to engage with them.
The next step is to agree on the company’s role and clarify how to take action, monitor & report progress.
Using social risk assessment in approaches to responsible sourcing of agricultural commodities
This document provides suggestions for how companies can use social risk assessment as part of their responsible sourcing strategies for agricultural commodities.
It gives an overview of why social risk assessment is needed and the kinds of social issue that may need to be investigated. Ideas are put forward for using the results of social risk assessment at various points in a company’s programme of work on responsible sourcing, from strategy and communications, through various forms of supplier engagement, to investment in broader interventions at the sectoral or jurisdictional level.
The document is intended to serve as a guide for sustainability personnel and responsible procurement teams.
Drivers of child labour, forced labour, inadequate health & safety, and land rights abuses and disputes in agriculture and forestry
This document outlines some of the most common underlying conditions in which child labour, forced labour, inadequate health and safety, and land rights abuses and disputes are reported to occur in agriculture and forestry.
The conditions act as drivers or risk factors which can increase the likelihood of labour and land issues occurring.
To identify the most commonly reported conditions, we have drawn from a review of the literature, analysis of mill-level site assessments and discussions with Proforest colleagues and partners who have years of experience in assessing labour and land rights. Our analysis is by no means comprehensive. In addition to the four issues reviewed here, there are other social issues which affect workers, farmers and communities, but although they are not included, they may share some of the underlying conditions.
Although we focus on two tropical commodities of palm oil and sugarcane, much of the literature is more general and the drivers identified here are likely to be relevant for other crops and contexts, hence the inclusion as part of the Soy Toolkit.
Addressing gender considerations in the soy supply chain
Addressing gender considerations in the soy supply chain: tackling gender inequality through responsible sourcing
This paper provides rationale and recommendations for including gender considerations in the responsible sourcing of soy and ensuring gender equality is built in to all stages of the supply chain, including production. This paper outlines key steps soy sourcing companies can take at different levels of the approach to implement their policies. There are ongoing discussions across a set of commodity supply chains on how to address gender inequalities, and this paper is an attempt to help the conversations move forward. It can and will be reviewed as the sectors progress.
Key points
There remains a wide gender gap between men and women in terms of the benefits received from participating in agricultural supply chains, including in soy.
Companies should address gender issues both in their internal operations and those of their third party suppliers. Gender considerations must be incorporated at different stages of the approach to responsible sourcing.
Company sourcing policies that do not actively contribute to gender equality are likely to reinforce a system that marginalises some for the benefits of others.
Companies sourcing soy can contribute to improving gender equality in agriculture by promoting this through their commitments and policies, and actively engaging with suppliers to tackle gender inequality in production.
The case for the responsible sourcing of soy in China
Developed in partnership with CDP China, this document aims to help soy buying companies in China to understand the business case and resources needed to address deforestation and other social and environmental risks in their global supply chains.
Within the document you will find insights on risks for Chinese companies not addressing potential issues in their supply chain, including:
Operation risks
Legal risks
Reputational risks
Failing to meet market demands
Failing to meet headquarters’ demands
Failing to meet customers’ demands
Failing to meet the finance sector’s growing scrutiny
Download the full document to access a toolkit for addressing risk and sourcing soy responsibly.