Louis Dreyfus Company Netherlands
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Louis Dreyfus Company Netherlands Sectors: Agriculture for Biofuels, Agriculture for Food Crops, Agriculture for Industrial Crops, Chemical Manufacturing, Commodities Trading Active This profile is actively maintained Send feedback on this profile By: BankTrack Created on: May 19 2020 Last update: Dec 23 2020 Contact: Marília Monteiro, Forest Campaigner. Sectors Agriculture for Biofuels, Agriculture for Food Crops, Agriculture for Industrial Crops, Chemical Manufacturing, Commodities Trading Headquarters Ownership The Louis Dreyfus family has ownership of approximately 95%, and LDC employees and management have around 5%. Subsidiaries Website https://www.ldc.com/ About Louis Dreyfus Company Louis Dreyfus Company (LDC) is a leading processor and trader of agricultural commodities. LDC is active in over 100 countries and indirectly reaches a consumer base of 500 million people by originating, processing, and transporting approximately 81 million tons of commodities annually. Revenues in 2017 were USD 43 billion, and LDC employs 19,000 people worldwide. Louis Dreyfus Company is one of the major processors and exporters of soy in South America and one of the largest commodity traders globally. The company has significant oilseed crushing facilities in Brazil and Argentina, as well as having an annual capacity of several million metric tons in China. LDC is among the top ten soy exporters in Argentina and among the top five in Paraguay and Brazil. The company’s palm oil operations are also significant with the company handling over 2 million metric tons of palm oil and derivatives in 2015. It is also a major producer of biodiesel. Why this profile? Louis Dreyfus' operations, particularly in the soy and orange supply chains, are implicated in several social and environmental issues, such as poor working and living conditions, and deforestation of the Amazon and Cerrado biomes. Louis Dreyfus forms part of a group of companies which dominate the global soy trade. Taken together, the supply chains of Louis Dreyfus, Bunge, Cargill, ADM, COFCO, and Amaggi are associated with two-thirds of the total deforestation risk directly linked to soy expansion, the majority of it in the Cerrado. What must happen Banks and other financial institutions should not provide any new financing for Louis Dreyfus, until it is proven and verified that its supply chains respect workers rights and are not linked to deforestation of these biomes. Impacts Social and human rights impacts Working and living conditions LDC is the world’s third-largest orange juice producer, and its sector operations in Brazil are linked to several working and living conditions issues. According to a report from Public Eye and Repórter Brasil, LDC has committed nearly 200 violations of labour law in the Brazilian citrus sector since 2010, approximately half of which relate to workers’ health and safety. Pickers working for the company's suppliers reported that they do not earn the statutory minimum wage equivalent to around CHF 190 per month. Since the COVID-19 outbreak, in comparison to 2019, the real wages are even lower. With the social distancing rules on plantations, fewer pickers are being recruited, further increasing the pressure to be highly productive. The pickers are employed for the harvest season, which lasts between eight and eleven months, under precarious conditions and contracts that include daily productivity targets. Seasonally employed pickers at LDC are also denied access to the company’s healthcare benefits. In 2018, the multinational was ordered to pay a fine equivalent to 122,400 Swiss francs, after an inspection five years earlier revealed that 34 employees had been living in a former henhouse. Environmental and climate impacts Deforestation and biodiversity loss According to the Trase report, Louis Dreyfus is among the six major companies operating in the Brazilian soy supply chain (along with Bunge, Cargill, ADM, Amaggi, and COFCO), which traditionally have dominated the trade of soy from Brazil and were responsible for 58% of the soy exports in the country and exposed to a 68% direct risk of deforestation between 2006 and 2016. The main areas impacted are the Amazon rainforest and the Cerrado savanna, more specifically in the Matopiba region, the new agricultural frontier of the soy expansion. Compared with the other global traders, LDC’s deforestation footprint is relatively small – its presence is mostly located in already consolidated soy growing areas. However, the company is also exposed to deforestation risks through its joint venture with Amaggi, the Amaggi & LD Commodities. Between 2009 and 2016, the joint-venture exported 2.6 million tonnes of soy from Matopiba (9% of all soy exported from the region), and was exposed to much higher relative deforestation risk than the parent companies: 8 ha per 1,000 tonnes. In 2018, the company announced a policy to eliminate the destruction of native ecosystems and endangered wildlife from its soy supply chain. However, NGOs state that since the deforestation commitment, there was no detailed action plan stating clear objectives and deadlines. LDC's palm oil supply chain is also linked to deforestation: the biggest and the fifth largest deforesters in Southeast Asia in 2018, the Malaysian company Bintulu Lumber Development (BLD) and the Indonesian Musirawas Group respectively, are suppliers of LDC. Governance Bank policies The following bank investment policies apply to this project: HSBC Modern slavery and human trafficking statement Feb 18 2020 | HSBC BNP Paribas Statement on Human Rights Dec 31 2012 | BNP Paribas Agriculture Sector Policy Dec 8 2015 | BNP Paribas Modern Slavery and human trafficking Statement Feb 22 2019 | BNP Paribas Credit Suisse Statement on human rights Mar 5 2019 | Credit Suisse ABN AMRO Sustainability policy for agri-commodities Jun 30 2018 | ABN AMRO Modern Slavery Statement 2018 Mar 26 2019 | ABN Amro Citi Statement on human rights Nov 22 2018 | Citi Rabobank Sustainability Policy Framework Aug 27 2019 | Rabobank Agrochemicals policy Oct 13 2020 | Rabobank Société Générale Human Rights Statement Mar 31 2019 | Société Générale Modern Slavery Act statement 2020 May 5 2020 | Société Générale JPMorgan Chase Human rights May 3 2011 | JPMorgan Chase Environmental and social policy framework Feb 25 2020 | JPMorgan Chase DZ Bank Human rights policy Date listed represents date as accessed on website May 9 2019 | DZ Bank U.S. Bancorp Environmental responsibility policy Feb 11 2020 | U.S. Bancorp Bank of America Human Rights Statement Apr 18 2019 | Bank of America Commerzbank Environmental policy Oct 13 2015 | Commerzbank ING Environmental and Social Risk Framework Jul 1 2019 | ING Standard Chartered Agro-industries position statement May 21 2019 | Standard Chartered Canadian Imperial Bank of Commerce (CIBC) Environmental policy Nov 20 2020 | CIBC Deutsche Bank Position on Agricultural Commodities and Food Prices Jun 9 2016 | Deutsche Bank Human Rights Statement Mar 24 2016 | Deutsche Bank Environmental and Social Policy Framework July 2020 Jul 27 2020 | Deutsche Bank UBS Environmental and social risk policy framework 2019 Mar 12 2020 | UBS Royal Bank of Canada (RBC) Environmental policy Mar 5 2019 | Royal Bank of Canada Barclays Environmental Sustainability Policy statement Jan 1 2015 | Barclays Statement on human rights Nov 30 2016 | Barclays Applicable norms and standards Basel Criteria for Responsible Soy Production Roundtable for Responsible Soy (RTRS) Updates.