do you know where is the origin of your leather shoes or...

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“Embedded” deforestation and forest degradation: exploring responsibilities and potentialities in green marketing of the Italian leather industry

6th AIEAA Conference, Piacenza, 15-16 June 2017 “Economics and Politics of Migration: Implications for Agriculture and Food”

Aynur Mammadova, Caroline Sartorato Silva França, Mauro Masiero, Davide Pettenella

Doyouknowwhereistheoriginofyourleathershoesorbags?

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Source:ChathamHouse,2017,ResourceTrade

Setting the background:

Methodology and RQs

RQ 1. Deforestation as a business risk

RQ 2. Checking awareness among Italian tanneries

RQ 3. Way forward

Conclusion & Recommendations

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Brazil– cattleranchinganddeforestation

• Agricultureisresponsiblefor≈91%ofdeforestationinBrazil(Hosonuma etal.2012):

– 58%Commercial– 33%Subsistence

• Brazillosesmoreforeststhananyothercountryintheworld=984000ha.yr-1 (FAO2016);

• AftersignificantgaininreducingdeforestationintheAmazonregion,numbersarebackontherise;

Setting the background:Methodology and RQs



RQ 3. Way forward


Brazil– cattleranchinganddeforestation

Source:IBGE2016Source:Hansen/UMD/Google/USGS/NASA,accessedthroughGlobalForestWatch




RQ 3. Way forward


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Italy- Leatherindustry

Lombardy

Veneto53%

Tuscany

Campania

42%

25%

16%

10%

5% 2%

Leatherproductsperdestination

Footwear

Leathergoods

Furniture

Carinterior

GarmentsandglovesTheyearof2015

• Valueofproduction:5.2billionEUR• Exports:4billionEUR

Source:UNIC,2016




RQ 3. Way forward


What are the potential marketing opportunities for the industry in investing in full traceability and deforestation free supply chains? Are

zero deforestation commitments suitable tool? (RQ 3)

What is the level of awareness about upstream processes among Italian tanneries? Is it being publicly communicated? (RQ 2)

Does the issue of deforestation present a business risk for Italian leather industry? (RQ1)

• Literature review• Trade data

• Content analysis of the website content

• Preliminary interviews

• Preliminary interviews• Literature review

ResearchQuestionsandmethodsSetting the background:Methodology and RQs



RQ 3. Way forward


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RQ1.Deforestationasabusinessrisk

Increasingglobalconcernandinvolvementoverdeforestation

Businessesdirectlylinkedtoagriculturalactivities

Tradedata




RQ 3. Way forward


• Failureofnationalgovernmentstoaddresstheissue

• Riseofinternationalgovernance

• Riseofthirdpartyinitiativesandpublic-privatepartnerships

• Awarenessandresponsibilitiesofbusinesses&financialinstitutions

• ParisClimateAgreement

• TropicalForest

Alliance(TFA)

• TheNewYorkDeclarationon

Forests

• REDD+schemes&relatedpolicyinstruments

FSC,RSPO,RTSB

• UNFCC • EUFLEGT

Tradedata







RQ 3. Way forward


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• CDPreports,41%recognizeoperational,47%reputationaland37%regulatoryrisksrelatedtocattleproductionanddeforestation.

•Increasingcustomer

awarenessanddemandforinformation

•Increasingconsumerawareness

•NGOreportsandreputational

risks

i.e.Greenpeace,

FERN,

i.e.IKEAsustainabilityprogrammei.e.“Deforestation

free”labels;ConsumerGoods

Forum

Tradedata







RQ 3. Way forward


0 500000 1000000 1500000 2000000 2500000 3000000 3500000

China

Italy

UnitedStatesofAmerica

VietNam

Hungary

HongKong,China

Mexico

Thailand

Korea,Republicof

Germany

Taipei,Chinese

Indonesia

Exportedvaluein2012 Exportedvaluein2013 Exportedvaluein2014 Exportedvaluein2015 Exportedvaluein2016

Figure 1 List of importing markets for a product exported by Brazil. Product: 41 Raw hides and skins (other than furskins) and leather

Source: ITC, 2017; UN COMTRADE 2016

Tradedata







RQ 3. Way forward


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Tanneries

Sources:IBGE2017,Walker,PatelandKalif 2013,CICBandApexBrasil 2017,IBGE2002,CICB2016a

Brazil

Italy

Intermediaries

Leather producers

In 2016:

• ≈ 67% Brazilian leather production is exported (value)

• US$ 2,033 Billions

33 certified (LWG)17 Gold certificates

Wet-blue Semi-finishedFinished

≈250 IBGE database

Sources:CICBandApexBrasil 2017

Source:CICB2016a*Graphdoesnotincludemanufacturedleatherproductsexported

Domestic Market(≈33%)




RQ 3. Way forward


Tradedata




RQ2.WhatisthelevelofawarenessamongItaliantanneries?

0

10

20

30

40

50

60

70

forest treaceability origin environment

Num

bero

fCom

panies

Frequencyofkeywordusebyvalue

0- Nomention 1- Briefmention 2- Mentionwithadditionalinformation

Figure 3. Number of companies scoring at each category

Figure 2. Overall scoring of keywords

48

17

10

4

0 20 40 60 80 100

environment

origin

treaceability

forest

Relativevalue(%)

Key-words

Tanneariespubliccommunication

Keywords:“forest”,“origin”,“traceability”,“environment”.




RQ 3. Way forward


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TheItaliantanningindustry(UNIC2017)perceivesitselfasthe“theprecursorofthecirculareconomy”(p.24)formakinguseofaby-productofthemeatindustryandunderstandsits“rawmaterial[as]inelasticandstrictlyrelatedtomeatmarketdynamics”(p.26).

RQ2.WhatisthelevelofawarenessamongItaliantanneries?Setting the background:Methodology and RQs



RQ 3. Way forward


Zerodeforestation

Someforestlosscouldbeoffset byforestrestoration&isnotsynonymouswithatotalprohibitiononforestclearing…

Zeronetdeforestation

--->

Nolossofforestcoveroveragiventimeperiodcausedbyconversionofforesttononforested land…

Zerogrossdeforestation

RQ3.WayforwardSetting the background:Methodology and RQs



RQ 3. Way forward


Zerodeforestationcommitmentasatool?

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RQ 3. Way forward


Zerodeforestationcommitment?

RQ3.Wayforward

ConclusionSetting the background:Methodology and RQs



RQ 3. Way forward


• Deforestation is becoming an increasing business risk due to rise in global transparency and surveillance tools

• Although deforestation was revealed as an important concern during personal communication and interviews with tannery managers 2016-2017), there is a significant lack of consistent public communication of the issue.

• Communicating contentious issues, such as deforestation, appears to be more closely related to lack of transparency than with awareness per se.

• Businesses might find it difficult to communicate negative aspects of their supply chain, fearing reprisal for their “not enough” evolution towards established goals.

• The landscape of zero deforestation commitments, i.e. baseline years, typology, terminology, indicators, etc. makes it difficult for businesses to commit

• The very nature of the leather supply chain makes it challenging to put forward commitments

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Thankyou!

Foranyinquirespleasecontact:

DavidePettenella [email protected] [email protected] [email protected] [email protected]

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CICB(2016b)ImportaçõesBrasileiradeCourosePeles.CentrodasIndústriasdeCurtumedoBrasil.Availableat:http://www.cicb.org.br/wp-content/uploads/2017/01/TOTAL-IMPO-DEZ16-2.pdf

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Hosonuma,N.,Herold,M.,DeSy,V.,DeFries,R.S.,Brockhaus,M.,Verchot,L.,Angelsen,A.,Romijn,E.(2012).Anassessmentofdeforestationandforestdegradationdriversindevelopingcountries.EnvironmentalResearchLetters,7(4),44009.

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IBGE(2002)PesquisasAgropecuárias:SérieRelatóriosMetodológicos.InstitutoBrasileirodeGeografiaeEstatistica.v.6,2nded.Availableat:http://biblioteca.ibge.gov.br/visualizacao/livros/liv1265.pdf

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MMA(2017).ControleePrevençãodoDesmatamento.Availableat:http://www.mma.gov.br/florestas/controle-e-preven%C3%A7%C3%A3o-do-desmatamentoMcCarthy,Ben.SupplyChange:TrackingCorporateCommitmentstoDeforestation-freeSupplyChains,2016.Washington,DC:ForestTrends,2016.NationalwildlifeFederation.2015.ZeroDeforestationCattle.Availableat:http://www.zerodeforestationcattle.orgStephenDonofrio,PhilipRothrock,andJonathanLeonard,SupplyChange:TrackingCorporateCommitmentstoDeforestation-freeSupplyChains,2017(Washington,DC:ForestTrends,2017)SabineHenders, UMartinPersson and ThomasKastner..Published22December2015 • ©2015IOPPublishingLtdEnvironmentalResearchLetters, Volume10, Number12FocusonFood,TradeandtheEnvironmentUnioneNazionaleIndustriaConciaria.2015.SustainabilityReportWalker,N.,Patel,S.,&Kalif,K.(2013).FromAmazonpasturetothehighstreet:deforestationandtheBraziliancattleproductsupplychain.TropicalConservationScience,6(3),446–467.Walker,N.F.,Patel,S.A.andKalif,K.A.B.2013.FromAmazonpasturetothehighstreet:deforestationandtheBraziliancattleproductsupplychain.TropicalConservationScience.SpecialIssueVol.6(3):446-467.Availableonline:www.tropicalconservationscience.orgZero-DeforestationCommitments:WhatDoTheyMean?(n.d.).Retrievedfromhttp://www.triplepundit.com/2016/06/zero-deforestation-commitments-what-do-they-mean/

References

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