PrimeAsia Leather leads in addressing deforestation risks

Worldwide
Published:  25 November, 2013

PrimeAsia Leather Corporation announced that on November 20 that they have been selected as a sector leader for the consumer durables and apparel industry at the launch of CDP’s forests annual report, “The commodity crunch: value at risk from deforestation.” 

CDP’s forests program 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, investor signatory numbers more than doubled, and 139 companies with a market capitalization of more than US$3 trillion, including 52 new respondents, completed CDP’s information request. Companies use CDP’s forests program to understand and address their exposure to deforestation risks.

Respondents told CDP’s forest program that they face three key challenges:

  • lack of traceability in global commodity supply chains
  • challenges with certification
  • regulatory uncertainty

The leaders of each sector are identified solely on the basis of the information contained in their responses to the questions in the 2013 information request, a list of criteria is detailed below.

CDP’s Chief Executive Officer Paul Simpson says: “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. At CDP, we provide the world’s largest system to enable businesses to disclose and understand these operational, reputational and supply chain risks, while alerting investors to the value implications.’’

PrimeAsia’s Environmental Manager Sarah Swenson says: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.”

 

PrimeAsia Vietnam

About CDP

CDP is an international, not-for-profit organization providing the only global system for companies and cities to measure, disclose, manage and share vital environmental information. CDP works with market forces, including 722 institutional investors with assets of US$87 trillion, to motivate companies to disclose their impacts on the environment and natural resources and take action to reduce them. CDP now holds the largest collection globally of primary climate change, water and forest risk commodities information and puts these insights at the heart of strategic business, investment and policy decisions. Please visit www.cdp.net.

About CDP’s forest program

CDP’s forests program was formerly known as the Forest Footprint Disclosure Project (FFD). In June 2012 CDP and the Global Canopy Programme (GCP) announced an alliance to merge GCP’s Forest Footprint Disclosure Project with CDP. This strategic merger brings corporate disclosure on the climate, water and forests under one roof, resulting in the world’s largest and most comprehensive natural capital disclosure system, and provides companies and investors with a single, integrated source of information for these interrelated issues.

As part of the transition process, CDP began managing FFD’s operations in February 2013, and full integration will take place by February 2014. GCP is working closely with CDP throughout the transition year of 2013, and will continue to act as the prime funder of CDP’s forests program until 2014, when it will take on a new role as advisor on forests and forest risk commodities to CDP.

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