The Brazilian business sector wants action to reverse the current negative perception of Brazil's image abroad in relation to socio-environmental issues in the Amazon.
In a videoconference meeting this Friday with Hamilton Mourão, president of the National Council for the Legal Amazon and Vice President of the Republic, a group of representatives from the Brazilian business sector reinforced their call for effective measures to combat illegal deforestation in the country, among other things, to reverse the current negative perception of Brazil's image abroad regarding socio-environmental issues in the Amazon. Immediate action is needed to mitigate the negative reactions of foreign investors and consumers to doing business in our country, the business leaders stated.
At the meeting, the executives presented the government with a proposal for greater participation and joint work with the National Amazon Council on policies that encourage a green economic recovery, toward a low-carbon scenario. The business leaders also highlighted the private sector's achievements and how illegal deforestation harms business.
Vice President Hamilton Mourão stated that the meeting opens a dialogue between the government and the private sector and that he is aligned with the proposals put forward by businesspeople.
The business sector was represented at this meeting by Marina Grossi, president of the Brazilian Business Council for Sustainable Development (CEBDS); Marcello Brito, president of the Brazilian Agribusiness Association (ABAG); José Carlos Fonseca, executive director of the Brazilian Tree Industry (IBÁ); João Paulo, CEO of Natura Latin America; Walter Schalka, CEO of Suzano; André Araujo, CEO of Shell; Paulo Sousa, CEO of Cargill; Marcos Antonio Molina dos Santos, chairman of the Board of Directors of Marfrig; Candido Botelho Bracher, CEO of Itaú; and Luiz Eduardo Osorio, executive director of Institutional Relations, Communications and Sustainability at Vale.
This Friday's meeting was confirmed by the president of the National Council of the Legal Amazon after the Notice from the Brazilian Business Sector was made public last Tuesday (7). In addition to the National Council of the Legal Amazon and the Vice Presidency of the Republic, the document was filed with the presidents of the Supreme Federal Court, Federal Senate and Chamber of Deputies, and the Attorney General of the Republic. At the time, the document was signed by CEOs of approximately 40 companies and business groups from the industrial, agricultural and service sectors, as well as four organizations: CEBDS, Abag, Ibá and the Brazilian Association of Vegetable Oil Industries (ABIOVE). Currently, the position – which is open and seeks the greatest possible engagement – has the support of 50 large companies and, with the inclusion of the Global Compact Brazil Network, totaling five entities.
During the meeting, Mourão also committed to establishing and announcing semiannual targets against deforestation, fires, and land grabbing. He also pledged not to tolerate illegal practices.
Loss to Brazil
Executives warn that the negative image has enormous potential to harm Brazil, not only from a reputational standpoint, but also effectively impacting the development of businesses and projects that are crucial to the country. In addition to increased resistance and even flight of foreign investment, there are risks of increased suspicion about the origin of beef and silent boycotts, with the difficulty of Brazilian products entering some markets.
Deforestation of 1 hectare in the Amazon costs between R$$ 800.00 and R$$ 2,000, depending on the forest's tree density. Considering the 9,200 km2 (920,000 hectares) deforested in 2019, the cost of illegal deforestation ranged from R$$ 740 million to R$1.8 billion.
Business potential
On the other hand, there is a high business potential of the standing forest that has not yet been fully measured. A study published last year by the magazine Perspectives in Ecology and Conservation and endorsed by more than 407 Brazilian scientists from 79 research institutions – pointed out that the 270 million hectares of native vegetation preserved on rural properties – including unprotected areas and Legal Reserves – provide Brazil with R$1.4 trillion per year in ecosystem services, such as pollination, pest control, water security, rainfall production and soil quality.
The services offered by natural systems impact food, energy, and water security; the productivity of the agricultural chain; and serve as a store and sink for carbon.
A report by the Brazilian Platform for Biodiversity and Ecosystem Services on landscape restoration indicates that one hectare of standing forest in the Amazon, for example, generates an average of R$ 3.5 thousand per year and in the Cerrado around R$ 2.3 thousand per year. In agroforestry systems, this yield can reach more than R$ 12 thousand per year. The same hectare deforested for livestock farming would yield a profit of R$ 60 to R$ 100 per year. If used for soybeans, the value would be R$ 500 to R$ 1 thousand per year.
Solutions
In addition to effectively combating illegal deforestation, the document identifies the following as priority areas for action: (i) social and economic inclusion of local communities to ensure forest preservation; (ii) minimizing the environmental impact of natural resource use, striving for efficiency and productivity in the resulting economic activities; (iii) valuing and preserving biodiversity as an integral part of business strategies; (iv) adopting carbon credit trading mechanisms; (v) directing financing and investments toward a circular and low-carbon economy; and (vi) incentive packages for economic recovery from the effects of the COVID-19 pandemic, conditional on a circular and decarbonized economy.
