BVRio and CDP launch the Chinese version of “Assessing Compliance with the Forest Code: A Practical Guide”

This guide is intended to help Chinese buyers of Brazilian forestry and agricultural commodities to verify compliance with the Brazilian Forest Code in their supply chains

Beijing, 13 March 2018 – Today, BVRio and CDP launch the Chinese version of the guide “Assessing Compliance with the Forest Code: A Practical Guide”. The publication is intended to help buyers of Brazilian forestry and agricultural commodities to verify compliance with the Brazilian Forest Code in their supply chains. The original version of this practical guide was developed by BVRio, Proforest and IPAM, on behalf of the Brazilian Forest Code Observatory. It has been translated into Chinese and adapted to China by CDP and BVRio, with Norad support.

The Brazilian Forest Code (Law 12651/2012) is an essential tool for ensuring a high standard agribusiness and for achieving sustainable development in Brazil. It establishes criteria for land use and conservation of native vegetation in rural properties. For instance, one of the requirements created by the Brazilian Forest Code is that all rural properties in the country maintain a certain amount of land under native vegetation (called “Legal Reserves” – Reserva Legal, in Portuguese), which can reach up to 80% of the land in the Amazon region. Enforcement of this law would create one of the most powerful domestic mechanisms for avoiding deforestation and protecting natural forests.

The Brazilian agricultural and forestry commodity markets play a fundamental role in the implementation of the Brazilian environmental law, and therefore in reducing deforestation. At the same time, non-compliance with the Forest Code poses financial, regulatory, reputational or competitive risks to procuring companies. By requiring environmental compliance to commodity producers, the private sector can provide a strong impulse for the transition of the forestry and agricultural sectors towards sustainability and legality. In this context, BVRio and CDP adapted the practical guide “Assessing compliance with the Forest Code: A practical guide” to assist Chinese buyers of forestry and agricultural commodities to verify compliance with the Brazilian Forest Code in their supply chains.

By requiring law enforcement from its suppliers, Chinese buyers will be able to demonstrate that their products derive from sustainable agricultural sources and do not contribute, for example, to illegal deforestation in Brazil. To this end, the guide presents the tools available to demand compliance with the Forest Code in supply chains.