July 15, 2020

Grieg Seafood calls out Cargill over Brazil deforestation

Norway-based salmon farmer Grieg Seafood said it has excluded Cargill Aqua Nutrition from receiving proceeds from its Green Projects initiatives including its first Green Bond issue over its parent company's alleged contribution to soy-related deforestation of the Brazilian Cerrado, a vast savanna ecoregion, SeafoodSource reported.

Grieg Seafood was recently awarded NOK1 billion (US$106.7 million) Green Bond issue, from which net proceeds will finance and refinance investments and related expenditures in Green Projects.

Grieg Global Communications Manager Kristina Furnes told SeafoodSource that as a company with Brazilian soy in its value chain, Grieg Global was deeply concerned about the current developments in Brazil, adding that deforestation needs to be halted because "we are in a climate crisis, and also because we must protect the biodiversity of these forests".

Ms. Furnes pointed out that the exclusion had nothing to do with Cargill Aqua Nutrition, which she said Grieg Global considers a good partner. "The issue is the current lack of progress on [the] ground in Brazil to end soy-related deforestation, and Cargill Inc.'s connection to that", she said.

"In addition to our ethical concerns, we are unfortunately in a situation where being a customer of and in a partnership with Cargill Aqua Nutrition is a reputational challenge, due to the ownership connection to Brazil. Both customers, investors and NGOs care about this issue, as was evident during the Green Bond process".

Furnes said they were in dialogue with Cargill on the issue and "they are signaling progress so we hope that the deforestation risk will be resolved".

Cargill, meanwhile, said it has upheld the Brazilian Soy Moratorium in the Amazon since 2006 and that it remains committed to finding lasting solutions for protecting forests and native vegetation in the Cerrado, according to the report.

"Cargill's work is centered on eliminating deforestation and protecting native vegetation beyond forests, while taking into account social and economic implications in these farming communities," Cargill Protein and Animal Health Media Relations Director Daniel Sullivan was quoted as saying in the report.

"Cargill—along with our industry, farmers, local governments, and customers—all have accountability for transforming the food supply chain, and we are engaging with stakeholders every day to make progress", he added.