PrimeAsia tops survey on deforestation risks in supply chain
26/11/2013
CDP’s forests programme asks companies to disclose their exposure to deforestation risks through their use of five agricultural commodities that are responsible for most deforestation (palm oil, soy, biofuels, timber and cattle products).
This year, 139 companies with a market capitalisation of more than $3 trillion completed CDP’s information request. Respondents told CDP that they face three key challenges: lack of traceability in global commodity supply chains; challenges with certification; and regulatory uncertainty. The leaders of each sector are identified solely on the basis of the information contained in their responses.
CDP’s chief executive, Paul Simpson, said: “We applaud the work of PrimeAsia Leather Corporation who has demonstrated leadership in the steps it has taken to address deforestation risks in its supply chain. Many other companies do not understand their potential exposure to these risks. But if no action is taken on this, there will be many more supply chain disasters like the ‘horse meat’ scandal to undermine shareholder value.’’
PrimeAsia’s environmental manager, Sarah Swenson, added: “PrimeAsia’s commitment to the environment guides us to create the highest quality leather with the lowest lifecycle footprint through innovation and engagement of employees, customers, suppliers, and the communities in which we operate.
"In PrimeAsia’s sector the company demonstrates impressive raw material traceability and can track all raw hides back to the farm or feedlot. This is in stark contrast to many raw materials such as cotton, which lose traceability when mixed together to create their products. In addition to supply chain management, PrimeAsia spent 2013 continuing to pursue its ambitious five year commitment of 30% energy, water and waste reduction goals and published their first Global Reporting Initiative report, providing greater transparency to all its stakeholders.”
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