SLCJY - SLC Agrícola: Planned Deforestation Could Contradict Buyers' ESG Policies
SLC AgrÃcola faces potential risks of losing clients with zero-deforestation commitments, as well as an overvaluation of its land portfolio. Various retailers and consumer goods companies, including SLC AgrÃcola’s business partner Lidl, support the Cerrado Manifesto. Soy traders Bunge, Louis Dreyfus, Amaggi, Cargill and ADM adopted and strengthened zero-deforestation commitments in 2017/18. If Lidl would apply the Cerrado Manifesto signed by the UK and Dutch subsidiaries to the whole company, SLC AgrÃcola would face market access risk for the 147,000 metric tons of soy sales in the Lidl contract (to be reached in 2019),