In response to stakeholder pressure, companies increasingly make ambitious forward-looking sustainability commitments. They then draw on corporate policies with varying degrees of alignment to ...disseminate and enforce corresponding behavioral rules among their suppliers and business partners. This goal-based turn in private sustainability governance has important implications for its likely environmental and social outcomes. Drawing on paradox theory, this article uses a case study of zero-deforestation commitments in the Indonesian palm oil sector to argue that goal-based private sustainability governance’s characteristics set the stage for two types of paradoxes to emerge: performing paradoxes between environmental, social, and economic sustainability goals, and organizing paradoxes between cooperation and competition approaches. Companies’ responses to these paradoxes, in turn, can explain the lack of full goal attainment and differential rates of progress between actors. These results draw our attention to the complexities hidden behind governance through goal setting in the corporate space, and raise important questions about the viability of similar strategies such as science-based targets and net-zero goals.
Private investments to address environmental issues are perceived as a powerful engine of sustainability. For the agri-food sector, multiple instruments have been developed to green supply chains. ...Yet little is known about the underlying process and conditions under which green sourcing concerns lead to the adoption of specific sustainability instruments among agri-food companies. This study: i) offers a synthesis of the most commonly used instruments agri-food companies adopt to promote sustainability in their supply chains; ii) proposes an analytical framework to elucidate how those decisions are made, based on the competitive environment in which firms operate—with respect to location of their raw materials, technologies available to their suppliers, leverage over upstream suppliers, and end-markets’ characteristics; and iii) presents seven case-studies illustrating the decision-making process leading to the adoption of a specific instrument by a particular company. Companies that do not have sustainable technologies available to improve their environmental practices but operate in highly sensitive places are better off taking their operation somewhere else. But companies with available cleaner technologies, effective law enforcement and control over the supply chains, as well as a brand to protect, can capitalize on their environmental efforts by introducing strict standards, such as third-party certifications. Enforcement of social and environmental regulations at countries of origin is a key factor that deters companies form adopting very strict standards, even if they have a brand value to enhance. The multiplication of private labels and initiatives are, in most cases, not driven by a desire to disorient the consumer, but rather by a careful consideration of the complex conditions under which agri-food supply chains operate. With minor adaptations, the framework could be applied to other economic sectors that have environmental impacts, from mining and energy-generating industries, to apparel, and electronics.
•An analytical framework to elucidate corporate decisions for greening their supply chains is offered.•Conditions at origin, leverage over suppliers, and end-markets’ features determine the stringency of the instrument adopted.•If clean technologies do not exist and companies operate in sensitive ecosystems, they should take their operation elsewhere.•Branded companies with clean technologies, strong enforcement & control over suppliers benefit from strict standards.•Weak law enforcement at origin can deter companies from adopting very strict standards, even if they have a brand to protect.
•Many firms buying forest-risk products made zero-deforestation commitments (ZDCs).•To achieve conservation goals, ZDCs may exclude vulnerable producers from markets.•Following 7 policy design ...principles can achieve effectiveness-access equity synergies.•We evaluate 28 ZDC implementation mechanisms in 4 leading forest-risk commodities.•Companies should better support vulnerable producers in achieving compliance.
In response to the clearing of tropical forests for agricultural expansion, agri-food companies have adopted promises to eliminate deforestation from their supply chains in the form of ‘zero-deforestation commitments’ (ZDCs). While there is growing evidence about the environmental effectiveness of these commitments (i.e., whether they meet their conservation goals), there is little information on how they influence producers’ opportunity to access sustainable markets and related livelihood outcomes, or how design and implementation choices influence tradeoffs or potential synergies between effectiveness and equity in access. This paper explores these research gaps and makes three main contributions by: i) defining and justifying the importance of analyzing access equity and its relation to effectiveness when implementing forest-focused supply chain policies such as ZDCs, ii) identifying seven policy design principles that are likely to maximize synergies between effectiveness and access equity, and iii) assessing effectiveness-access equity tensions and synergies across common ZDC implementation mechanisms amongst the five largest firms in each of the leading agricultural forest-risk commodity sectors: palm oil, soybeans, beef cattle, and cocoa. To enhance forest conservation while avoiding harm to the most vulnerable farmers in the tropics, it is necessary to combine stringent rules with widespread capacity building, greater involvement of affected actors in the co-production of implementation mechanisms, and support for alternative rural development paths.
Growing demand for agricultural commodities is causing the expansion of agricultural frontiers onto native vegetation worldwide. Agribusiness companies linking these frontiers to distant spaces of ...consumption through global commodity chains increasingly make zero-deforestation pledges. However, production and land conversion are often carried out by less-visible local and regional actors that are mobile and responsive to new agricultural expansion opportunities and legal constraints on land use. With more stringent deforestation regulations in some countries, we ask whether their movements are determined partly by differences in land-use policies, resulting in “deforestation havens.” We analyze the determinants of investment decisions by agricultural companies in the Gran Chaco and Chiquitano, a region that has become the new deforestation “hot spot” in South America. We test whether companies seek out less-regulated forest areas for new agricultural investments. Based on interviews with 82 companies totaling 2.5 Mha of properties, we show that, in addition to proximity to current investments and the availability of cheap forestland, lower deforestation regulations attract investments by companies that tend to clear more forest, mostly cattle ranching operations, and that lower enforcement attracts all companies. Avoiding deforestation leakage requires harmonizing deforestation regulations across regions and commodities and promoting sustainable intensification in cattle ranching.
Ongoing deforestation in the Brazilian Amazon is the outcome of an explicit federal project to occupy, integrate, and "modernize" the region. Although there have been isolated periods of ...deforestation control, most recently between 2004 and 2012, the overall trajectory of the region since the colonial period has been one of forest loss and degradation. Addressing this challenge is especially urgent in the context of adverse climate-ecology feedbacks and tipping points. Here we describe the trends and outcomes of deforestation and degradation in the Amazon. We then highlight how historical development paradigms and policies have helped to cement the land use activities and structural lock-ins that underpin deforestation and degradation. We emphasize how the grounds for establishing a more sustainable economy in the Amazon were never consolidated, leading to a situation where forest conservation and development remain dependent on external programs-punitive measures against deforestation and fire and public social programs. This situation makes progress toward a forest transition(arresting forest loss and degradation and restoring forest landscapes) highly vulnerable to changes in political leadership, private sector engagement, and global market signals. After summarizing these challenges, we present a suite of measures that collectively could be transformational to helping overcome destructive path dependencies in the region. These include innovations in agricultural management, improved forest governance through landscape approaches, developing a local forest economy, sustainable peri-urbanization, and the empowerment of women and youth. These initiatives must be inclusive and equitable, enabling the participation and empowerment of local communities, particularly indigenous groups who have faced numerous historical injustices and are increasingly under threat by current politics.
In the US, there is growing interest in producing more beef from cattle raised in exclusively pasture-based systems, rather than grain-finishing feedlot systems, due to the perception that it is more ...environmentally sustainable. Yet existing understanding of the environmental impacts of exclusively pasture-based systems is limited by a lack of clarity about cattle herd dynamics. We model a nationwide transition from grain- to grass-finishing systems using demographics of present-day beef cattle. In order to produce the same quantity of beef as the present-day system, we find that a nationwide shift to exclusively grass-fed beef would require increasing the national cattle herd from 77 to 100 million cattle, an increase of 30%. We also find that the current pastureland grass resource can support only 27% of the current beef supply (27 million cattle), an amount 30% smaller than prior estimates. If grass-fed systems include cropland-raised forage, a definition that conforms to typical grass-fed certifications, these supplemental feeds can support an additional 34 million cattle to produce up to 61% of the current beef supply. Given the potential of forage feed croplands to compete with human food crop production, more work is required to determine optimal agricultural land uses. Future US demand in an entirely grass-and forage-raised beef scenario can only be met domestically if beef consumption is reduced, due to higher prices or other factors. If beef consumption is not reduced and is instead satisfied by greater imports of grass-fed beef, a switch to purely grass-fed systems would likely result in higher environmental costs, including higher overall methane emissions. Thus, only reductions in beef consumption can guarantee reductions in the environmental impact of US food systems.
Crop and livestock production have become spatially decoupled in existing commercial agricultural regimes throughout the world. These segregated high input production systems contribute to some of ...the world's most pressing sustainability challenges, including climate change, nutrient imbalances, water pollution, biodiversity decline, and increasingly precarious rural livelihoods. There is substantial evidence that by closing the loop in nutrient and energy cycles, recoupling crop and livestock systems at farm and territorial scales can help reduce the environmental externalities associated with conventional commercial farming without declines in profitability or yields. Yet such "integrated" crop and livestock systems remain rare as a proportion of global agricultural area. Based on an interdisciplinary workshop and additional literature review, we provide a comprehensive historical and international perspective on why integrated crop and livestock systems have declined in most regions and what conditions have fostered their persistence and reemergence in others. We also identify levers for encouraging the reemergence of integrated crop and livestock systems worldwide. We conclude that a major disruption of the current regime would be needed to foster crop-livestock reintegration, including a redesign of research programs, credit systems, payments for ecosystem services, insurance programs, and food safety regulations to focus on whole farm outcomes and the creation of a circular economy. An expansion of the number of integrated crop and livestock systems field trials and demonstrations and efforts to brand integrated crop and livestock systems as a form of sustainable agriculture through the development of eco-labels could also improve adoption, but would likely be unsuccessful at encouraging wide-scale change without a more radical transformation of the research and policy landscape.
To address concerns about the negative impacts of food supply chains in forest regions, a growing number of companies have adopted policies to influence their suppliers' behaviors. With a focus on ...forest-risk food supply chains, we provide a systematic review of the conservation and livelihood outcomes of the mechanisms that companies use to implement their forest-focused supply chain policies (FSPs)-certifications, codes of conduct, and market exclusion mechanisms. More than half of the 37 cases that rigorously measure the outcomes of FSP implementation mechanisms find additional conservation and livelihood benefits resulting from the policies. Positive livelihood outcomes are more common than conservation additionality and most often pertain to improvements in farm income through increases in crop yields on coffee and cocoa farms that have adopted certifications or codes of conduct. However, in some cases certifications lead to a reduction in net household income as farmers increasingly specialize in the certified commodity and spend more on food purchases. Among the five cases that examine conservation and livelihoods simultaneously, there is no evidence of tradeoffs or synergies-most often an improvement in one type of outcome is associated with no change in the other. Interactions with public conservation and agricultural policies influence the conservation gains achieved by all mechanisms, while the marketing attributes of cooperatives and buying companies play a large role in determining the livelihood outcomes associated with certification. Compliance with the forest requirements of FSP implementation mechanisms is high, but challenges to geospatial monitoring and land use related selection biases limit the overall benefits of these policies. Given the highly variable methods and limited evidence base, additional rigorous research across a greater variety of contexts is urgently needed to better understand if and when FSPs can be successful in achieving synergies between conservation and livelihoods.
•South American countries have stepped up deforestation regulations and enforcement.•We study potential spillover effects of these regulations for soy and beef.•We find little change in soy or ...pasture expansion patterns due to increased regulations.•We find a decrease in beef imports from more regulated biomes.•Substitution between markets and actors diminish the effectiveness of regulations.
In response to the extensive loss of forests caused by soy and cattle expansion in South America, several countries have increased their legal restrictions on deforestation, and stepped up their enforcement. In addition, in the Brazilian Amazon, new private agreements were initiated in 2006 and 2009 to limit the purchase of soy and cattle linked with deforestation. One concern is that such policies, because they are spatially heterogeneous or focus on a subset of relevant actors, might generate negative spillovers in the form of leakage of agricultural activities and deforestation to less-regulated areas, and/or a redistribution of non-compliant product sales to non-participants. In this study, we use panel data on soy and beef production and trade in agricultural frontiers of South America to examine how changes in deforestation regulations in South America have altered soy and cattle expansion and exports in this region, and to understand how these changes, if they have occurred, influence the overall effectiveness of deforestation regulations. We find no evidence of a change in soy or pasture area expansion patterns due to changes in regulations, except within the Amazon biome where pasture expansion slowed in response to more stringent regulations and coincided with pasture intensification. We do find, however, a decrease in beef imports from biomes with more stringent deforestation regulations. While this decrease may indicate the existence of leakage to countries outside the study area, it is likely offset by pasture intensification, continued opportunities for deforestation, and increasing domestic consumption from these biomes. These results point to the potential role of substitution effects between local and international consumer markets, and between different actors, in diminishing the overall effectiveness of deforestation regulations.
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