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Partner LDC – June 2022 | SCF

Field data from 2021

NOTE

  • The SCF member companies’ overall performance on traceability to farm for direct sources is referenced in the Monitor Land Use section.
  • LDC’s reporting scope includes the Brazilian joint venture ALZ Grãos (ALZ), in which LDC has a 33% minority shareholding.
  • Based on SCF’s methodology, LDC counts 33% of ALZ’s soy sourced in the 61 focus municipalities (FMs) as part of our indirect sourcing profile. For this portion of LDC’s “indirect sourcing”, we consider “traceable to the first point of aggregation” the volumes directly sourced by ALZ that are actually “traceable to farm” – a step ahead on traceability.
  • ALZ’s sustainable sourcing commitments are laid out in its Grain Sustainability Policy. With close to 100% of its soy sourced directly from producers, ALZ is working toward full soy supply chain traceability.

Soy volume sourced in the Cerrado

Out of total volume sourced from Brazil in 2021

%

sourced in other biomes

%

sourced in the Cerrado

Soy volumes sourced in the 61 focus municipalities

Out of total volume sourced from Cerrado in 2021

%

sourced in other municipalities

%

sourced in the 61 focus municipalities

Soy volume sourced directly and indirectly

Out of total volume sourced from the 61 focus municipalities in 2021

%

indirect sources

%

direct sources

MAPPING OF INDIRECT SUPPLIERS

To the first point of aggregation in the 61 focus municipalities in 2021

%

not traceable to the first point of aggregation

%

traceable to the first point aggregation

VERIFIED DCF SOY

Out of total volume of soy purchased directly and indirectly in the 61 focus municipalities in 2021

%

non-verified DCF soy

%

verified DCF soy

Louis Dreyfus Company (LDC) announced earlier this year a commitment to eliminate deforestation and conversion of native vegetation of high conservation value for agricultural purposes from all its supply chains, by the end of 2025. This commitment builds on LDC’s global approach to shaping increasingly fair and sustainable food and agriculture value chains.

The ability to trace all suppliers (direct and indirect) is a crucial enabler to achieve this important goal in time. Each grain or oilseed we source must be traceable to its origin, so that the farms they were grown on can be monitored using satellite images, via advanced territorial comparison software capable of indicating any land use changes in areas with native vegetation within farming properties, almost in real time.

Our 2025 zero-deforestation and conversion commitment is the result of several years of work among multiple sustainability, commercial and other teams across our business, with genuine participation at all levels of the company, from top management to commercial managers and teams in the field.

Another important step for biodiversity conservation and GHG emissions reductions has been the creation of LDC’s dedicated Carbon Solutions Platform, which will drive the Group’s decarbonization roadmap and efforts, supported by active participation in both compliance and voluntary carbon credits markets, and in collaboration with climate solutions experts and all of LDC’s business lines to set science-based emissions reduction targets for the Group.

Vitor Correa
Global Head of Safety, Health & Environment (São Paulo) at LDC
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