annual review indst 2024 public - Flipbook - Side 21
Annual Review 2024
CASE STUDY
Carrefour
In early 2024, as part of the Farm Animal Investment Risk
and Return (FAIRR) collaborative engagement on protein
diversification, we were pleased to hear from the company
that it intended to report against the Taskforce on Naturerelated Financial Disclosures (TNFD) framework.
That year, we also joined the Nature Action 100 (NA100)
collaborative engagement as a lead engager for Carrefour.
We held our first NA100 meeting with the company in
mid-2024 to challenge the biodiversity impacts it had
disclosed in its report.
Changes at the company
We have engaged with Carrefour, a leading French
supermarket operator, since 2008. Over the last two
years we have intensified our engagement on
biodiversity given Carrefour’s significant impacts and
dependencies as a food retailer.
Our engagement
We started our engagement on biodiversity in 2022,
outlining our requests in a letter for the company to
identify, assess, and measure its most material impacts
and dependencies on biodiversity, including any
associated risks. We encouraged it to develop a strategy
to address these factors and articulate a plan with
milestones to deliver this. We also shared our biodiversity
white paper with Carrefour.1
We followed up with the company later that year, asking it
to provide more information on its sourcing of raw
ingredients and its approach to deforestation. We were
pleased to hear that it was working on assessing its impacts
on biodiversity through its supply chain and stores. We
pressed for the company to publish these results and for
Carrefour to develop a biodiversity roadmap.
We asked if it could commit to having a positive impact
on biodiversity. Carrefour stated that its intention was to
have a neutral impact on biodiversity. We also asked for
increased disclosure on water quality and quantity
impacts in the supply chain. The company acknowledged
our request.
We reiterated our requests in early 2023. We recognised
that the company had taken a step forward as Carrefour
was working with the Science Based Targets for Nature
(SBTN) programme. The company was responsive to our
engagement and spoke of its intention to define a
biodiversity strategy.
1
In early 2024, the company published its 2023 universal
registration document, which outlines its biodiversity
impacts and dependencies, and related risks and
opportunities. The company assessed its entire value
chain, in line with our recommendations. It provided a
representation of the group’s biodiversity footprint by
country and type of pressure, showing that its most
significant impacts were in Brazil and France due to land
use change.
It also showed the pressures exerted on biodiversity from
several raw materials identified as high impact by the
SBTN, including palm oil, beef, cocoa, soy, fishery
products, aquaculture products and cotton. The report
provided a narrative on pollution-related risks, including
air, water and soil pollution and microplastics. Carrefour
outlined an action plan to promote responsible
consumption and sustainable agriculture.
Carrefour also followed our suggestions on water
disclosures, reporting that it seeks to limit the water
footprint of its products in the procurement process.
For example, it supports suppliers in managing water
by helping them set up efficient irrigation systems.
The company also identified textile supply chains as
a major water pollution risk. It has developed a
programme to raise awareness, and to train and
audit textile suppliers.
We will continue our discussions on nature through our
direct engagement and the NA100 group.
Hannah Naumoff
Theme:
Natural Resource Stewardship
https://www.hermes-investment.com/uk/en/intermediary/eos-insight/stewardship/our-commitment-to-nature/.
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