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Dodgy Deal
Louis Dreyfus CompanyNetherlands

Company – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Last update: 2020-12-23 00:00:00
Soybeans being harvested; Louis Dreyfus Company is one of the major processors and exporters of soy in South America. Photo: Soybeans at Harvest via Wikimedia Commons (CC BY 2.0)

Company – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Last update: 2020-12-23 00:00:00
Why this profile?

Why this profile?

Louis Dreyfus' operations, particularly in the soy and orange supply chains, are implicated in several social and environmental issues, such as poor working and living conditions, and deforestation of the Amazon and Cerrado biomes. Louis Dreyfus forms part of a group of companies which dominate the global soy trade. Taken together, the supply chains of Louis Dreyfus, Bunge, Cargill, ADM, COFCO, and Amaggi are associated with two-thirds of the total deforestation risk directly linked to soy expansion, the majority of it in the Cerrado.

What must happen 

Banks and other financial institutions should not provide any new financing for Louis Dreyfus, until it is proven and verified that its supply chains respect workers rights and are not linked to deforestation of these biomes.  

About
Sectors Agriculture for Industrial Crops , Agriculture for Biofuels, Agriculture for Food Crops, Chemical Manufacturing, Commodities Trading
Headquarters
Ownership

The Louis Dreyfus family has ownership of approximately 95%, and LDC employees and management have around 5%.

Subsidiaries
Website https://www.ldc.com/

Louis Dreyfus Company (LDC) is a leading processor and trader of agricultural commodities. LDC is active in over 100 countries and indirectly reaches a consumer base of 500 million people by originating, processing, and transporting approximately 81 million tons of commodities annually. Revenues in 2017 were USD 43 billion, and LDC employs 19,000 people worldwide.

Louis Dreyfus Company is one of the major processors and exporters of soy in South America and one of the largest commodity traders globally. The company has significant oilseed crushing facilities in Brazil and Argentina, as well as having an annual capacity of several million metric tons in China. LDC is among the top ten soy exporters in Argentina and among the top five in Paraguay and Brazil. The company’s palm oil operations are also significant with the company handling over 2 million metric tons of palm oil and derivatives in 2015. It is also a major producer of biodiesel.

Impacts

Social and human rights impacts

Working and living conditions LDC is the world’s third-largest orange juice producer, and its sector operations in Brazil are linked to several working and living conditions issues. According to a report from Public Eye and Repórter Brasil, LDC has committed nearly 200 violations of labour law in the Brazilian citrus sector since 2010, approximately half of which relate to workers’ health and safety.

Pickers working for the company's suppliers reported that they do not earn the statutory minimum wage equivalent to around CHF 190 per month. Since the COVID-19 outbreak, in comparison to 2019, the real wages are even lower. With the social distancing rules on plantations, fewer pickers are being recruited, further increasing the pressure to be highly productive. The pickers are employed for the harvest season, which lasts between eight and eleven months, under precarious conditions and contracts that include daily productivity targets. Seasonally employed pickers at LDC are also denied access to the company’s healthcare benefits. In 2018, the multinational was ordered to pay a fine equivalent to 122,400 Swiss francs, after an inspection five years earlier revealed that 34 employees had been living in a former henhouse.


Environmental and climate impacts

Deforestation and biodiversity loss According to the Trase report, Louis Dreyfus is among the six major companies operating in the Brazilian soy supply chain (along with Bunge, Cargill, ADM, Amaggi, and COFCO), which traditionally have dominated the trade of soy from Brazil and were responsible for 58% of the soy exports in the country and exposed to a 68% direct risk of deforestation between 2006 and 2016. The main areas impacted are the Amazon rainforest and the Cerrado savanna, more specifically in the Matopiba region, the new agricultural frontier of the soy expansion.  

Compared with the other global traders, LDC’s deforestation footprint is relatively small – its presence is mostly located in already consolidated soy growing areas. However, the company is also exposed to deforestation risks through its joint venture with Amaggi, the Amaggi & LD Commodities. Between 2009 and 2016, the joint-venture exported 2.6 million tonnes of soy from Matopiba (9% of all soy exported from the region), and was exposed to much higher relative deforestation risk than the parent companies: 8 ha per 1,000 tonnes.

In 2018, the company announced a policy to eliminate the destruction of native ecosystems and endangered wildlife from its soy supply chain. However, NGOs state that since the deforestation commitment, there was no detailed action plan stating clear objectives and deadlines.

LDC's palm oil supply chain is also linked to deforestation: the biggest and the fifth largest deforesters in Southeast Asia in 2018, the Malaysian company Bintulu Lumber Development (BLD) and the Indonesian Musirawas Group respectively, are suppliers of LDC.

Financiers

Between 2013 and 2018, Louis Dreyfus Company received over USD 4.8 billion in lending and underwriting from 36 U.S. and EU financial institutions, with the banks HSBC, BNP Paribas, Credit Suisse, Crédit Agricole, and ABN Amro as the largest financiers. See below for more details.

Institution type
Finance type
Year
Projects
There are no active project profiles for Louis Dreyfus Company now.

Ferrogrão EF-170 Railway

Brazil
Project
On record
Train and Railroad Manufacturing | ...

Ferrogrão EF-170 Railway

Brazil
Governance
Bank policies
Norms & standards
The following bank investment policies apply to Louis Dreyfus Company:
HSBC
2020-02-18 00:00:00

Modern slavery and human trafficking statement

Bank policy
2020-02-18 00:00:00 | HSBC
BNP Paribas
2015-12-08 00:00:00

Agriculture Sector Policy

Bank policy
2015-12-08 00:00:00 | BNP Paribas
2019-02-22 00:00:00

Modern Slavery and human trafficking Statement

Bank policy
2019-02-22 00:00:00 | BNP Paribas
Credit Suisse
2019-03-05 00:00:00

Statement on human rights

Bank policy
2019-03-05 00:00:00 | Credit Suisse
Rabobank
2020-10-13 00:00:00

Agrochemicals policy

Bank policy
2020-10-13 00:00:00 | Rabobank
DZ Bank
2022-01-24 00:00:00

Human rights policy

Date listed represents date as accessed on website
Bank policy
2022-01-24 00:00:00 | DZ Bank
U.S. Bancorp
2020-02-11 00:00:00

Environmental responsibility policy

Bank policy
2020-02-11 00:00:00 | U.S. Bancorp
Commerzbank
2015-10-13 00:00:00

Environmental policy

Bank policy
2015-10-13 00:00:00 | Commerzbank
Royal Bank of Canada (RBC)
2019-03-05 00:00:00

Environmental policy

Bank policy
2019-03-05 00:00:00 | Royal Bank of Canada
Barclays
2015-01-01 00:00:00

Environmental Sustainability Policy statement

Bank policy
2015-01-01 00:00:00 | Barclays

Applicable norms and standards

Basel Criteria for Responsible Soy Production
Roundtable for Responsible Soy (RTRS)
News
BankTrack
Partners
Blog
External
Blog
BankTrack news BankTrack blog Partner news Partner blog

New study: Financing for industrial livestock undermines U.S. banks’ climate commitments

Bank of America, Citigroup, and JPMorgan Chase responsible for more than half of the $134 billion in financing examined in the report
2024-04-10 | Washington D.C. | Friends of the Earth, Profundo
Blog
BankTrack news BankTrack blog Partner news Partner blog

How Dutch banks finance agrilobby in Brazil

The new report exposes the links between Dutch financial institutions and agribusiness lobby
2024-03-21 | Amsterdam | Eerlijke Bankwijzer, Fair Bank Guide Netherlands
Blog
BankTrack news BankTrack blog Partner news Partner blog

Under the spotlight: Chinese banks' risky agribusiness portfolio

New Global Witness analysis shows Chinese banks are pouring billions into destructive agribusiness linked to global deforestation, highlighting huge gaps in environmental and social risk management
2021-06-07 | Global Witness
BankTrack news BankTrack blog Partner news Partner blog

The Chain: Traders See Increased Pressure to Agree to 2020 Cut-Off Date in Cerrado

2021-01-19 | Chain Reaction Research
BankTrack news BankTrack blog Partner news Partner blog

Big food companies urge soy traders to help save Brazil savanna

SAO PAULO (Reuters) - Companies including Tesco, Walmart, Unilever and McDonald’s on Tuesday said they had urged major commodities traders to stop dealing in soy linked to deforestation in Brazil’s Cerrado, a vast savanna region and vital carbon storehouse.
2020-12-21 | Reuters
BankTrack news BankTrack blog Partner news Partner blog

GREEN CATS 2020 UPDATE: SCORING PALM OIL AND SOY COMPANIES ON FOREST POLICIES AND TRANSPARENCY

2020-12-21 | Forest Heroes
BankTrack news BankTrack blog Partner news Partner blog

The Chain: Malaysian BLD Tops List of Major Deforesters in 2018

2020-12-17 | Chain Reaction Research
BankTrack news BankTrack blog Partner news Partner blog

Bitter oranges

The reality that the industry does not want you to see
2020-11-22 | Public Eye
BankTrack news BankTrack blog Partner news Partner blog

Campaigners call Louis Dreyfus' pledges on soy a "breakthrough"

2020-11-21 | Feed Navigator
BankTrack news BankTrack blog Partner news Partner blog

Bitter oranges: how Brazilian orange pickers do hard graft for Swiss agricultural trader LDC

Working conditions that are hazardous to health, informal employment, pay that does not provide a living wage: Public Eye observed all these abuses on orange plantations in Brazil that supply the Louis Dreyfus Company (LDC). The coronavirus crisis further exacerbates the already precarious conditions in which the pickers in LDC’s supply chain work.
2020-06-15 | Public Eye
Blog
BankTrack news BankTrack blog Partner news Partner blog

Complicity in Destruction II

How northern consumers and financiers enable Bolsonaro's assault on the Brazilian Amazon
2019-04-25 | Amazon Watch
BankTrack news BankTrack blog Partner news Partner blog

Saving the Cerrado: Six commodities traders to disclose supply chain data

2019-03-07 | Mongabay
BankTrack news BankTrack blog Partner news Partner blog

The Chain: Tesco, Louis Dreyfus Propose Policies to Limit Exposure to Deforestation Risks

2018-07-20 | Chain Reaction Research
BankTrack news BankTrack blog Partner news Partner blog

Soy giant Louis Dreyfus pledges deforestation-free supply chain

2018-07-16 | Mongabay
Resources
Documents
2024-03-18 00:00:00

Still Butchering the Planet

Partner publication
2024-03-18 00:00:00 | Feedback
2024-03-21 00:00:00

How the Netherlands finances agrilobby in Brazil

A case study for the Fair Bank Guide Netherlands
Partner publication
2024-03-21 00:00:00 | Fair Bank Guide Netherlands
2023-06-21 00:00:00

Climate Misalignment: How Development Bank Investments in Industrial Livestock Are at Odds With Their Paris Agreement Commitments

Partner publication
2023-06-21 00:00:00 | Friends of the Earth
2021-05-03 00:00:00

Key Cerrado Deforesters in 2020 Linked to the Clearing of More Than 110,000 Hectares

NGO document
2021-05-03 00:00:00 | Chain Reaction Research
2021-03-19 00:00:00

Countdown to Extinction

What will it take to get companies to act?
NGO document
2021-03-19 00:00:00 | Greenpeace
2021-03-18 00:00:00

Shining a Spotlight

A critical assessment of food and beverage companies’ delivery of sustainability commitments
NGO document
2021-03-18 00:00:00 | Oxfam
2020-12-18 00:00:00

The Ultimate Mystery Meat - Exposing the Secrets Behind Burger King and Global Meat Production

NGO document
2020-12-18 00:00:00 | Mighty Earth
2020-12-15 00:00:00

Sustainable Soy Policy

Bank policy
2020-12-15 00:00:00 | Louis Dreyfus Company
2019-04-25 00:00:00

Complicity in destruction II

NGO document
2019-04-25 00:00:00 | Amazon Watch
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Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
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