Carrefour`s Commitment for 2020: Work towards “Zero Deforestation”

Engaged since 1997 in an approach to control the sourcing of its wood supplies, Carrefour has been working with WWF since 1998 to privilege FSC (Forest Stewardship Council) -certified wood. The Group is now stepping up these efforts to positively influence all concerned supply chains through appropriate purchasing practices in order to preserve biodiversity, to reduce associated greenhouse gas emissions, and to ensure the respect of human rights.

At the end of 2010, Carrefour gave new impetus to its forest-linked purchasing practice by setting an ambitious goal: “Zero deforestation” by 2020. With this new target, Carrefour’s ambition is to preserve natural resources, biodiversity, and to help put an end to deforestation. Indeed, the Group has established strict rules that will apply to all its forest-related sourcing. This commitment – initiated in 2010 on the occasion of the UN International Year of Biodiversity – will be detailed and implemented in 2011 on the occasion of the International Year of Forests, declared by the United Nations.

This global policy concerns a wide range of products linked to forest management issues, among which are:

• goods made from wood, paper, and pulp;
• agricultural commodities whose production can have an impact on forests (especially palm oil);
• non-merchandising items such as commercial publications or cash register receipts.

For these products, Carrefour will improve its purchasing practices worldwide, and will work with its suppliers to ensure legality and no associated land conversion of natural forests and peat lands. Moreover, the Group is committed to promoting responsible consumption among its consumers and to raising their awareness on this issue.

In its efforts to protect biodiversity and to prevent deforestation, Carrefour is an active member of the Roundtable on Sustainable Palm Oil (RSPO) and promotes the production of 100% traceable and certified palm oil.

Sustainable palm oil production only officially began at the end of 2008. In 2009, 1.3 million tons were produced out of a total production of approximately 45 million tons. In 2010, this production reached 3.8 million tons, that is, 8 percent of the global consumption. The RSPO was formed in 2004 with the objective of promoting the growth and use of sustainable oil palm products through credible global standards and engagement of stakeholders.

The supply chain for palm oil and its byproducts, however, is very complex and lacks traceability. There are very few mills and factories that produce certified palm oil, most being certified only for a part of their production. They therefore still sell a mix of palm oils – both certified and non-certified – and in parallel purchase certificates for their quota of certified palm oil, off the Internet, via a system similar to the purchase of green electricity.

These “green” certificates are only a first stage in the international process. To promote a more transparent market, Carrefour defends the idea of palm oil production that is certified and can be traced from start to finish.

In 2010, the Group committed to developing a palm oil Carrefour Quality Line in Indonesia, sharing its 18 years of global experience on agricultural quality lines. In August, Carrefour Indonesia actually started the project in association with several local NGOs. This new quality line will provide Indonesian consumers with the possibility to choose products that do not result in further deforestation and that ensure working conditions that comply with the rules of the International Labour Organization.