A Product Chain Organization study of Brazilian soy The role of financial actors
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Typ
Examensarbete för masterexamen
Program
Industrial ecology (MPTSE), MSc
Publicerad
2019
Författare
Magnolo, Francesca
Modellbyggare
Tidskriftstitel
ISSN
Volymtitel
Utgivare
Sammanfattning
Deforestation in Brazil is a result of a complex network of actors and their interests
around farmland and agricultural products’ chains. A particular interest by foreign
investors on Brazilian farmland has also increased after the global financial crisis,
leading to a process of financialization. The complexity of interests and financialization
make sustainable management and governance of global product chains very
difficult. What is needed, is an understanding of how this system of interests works
and how this leads to negative impacts, in order to find mitigation solutions.
The aim of this thesis project has been to describe and model the actor-network
around the soybean product chain in order to support its sustainable management.
The method used consisted in a Product Chain Organization (PCO) study which
has looked at the actors, especially focusing on financial actors, along different steps
of the chain, identified using a life-cycle perspective. The focus on financial actors
resulted in following both the product chain and the financial chain. For doing so,
a document study on soybean companies, foreign investors, Brazilian communities
and deforestation policies has been performed as well as two interviews to some
important financial actors.
The model created showed the importance of specific types of actors along the chain
and the links between them. Some investors own very large shares of agricultural
funds or companies for farmland investments. Hence, they can exert a strong influence
on how agricultural funds and their farmland investments are managed, with
the power of having a highly positive or negative impact on a local level. So far, the
main limitation of investors in their approach to sustainable investing is due to the
subordination of environmental and social benefits to financial ones. Thus, there is
still a gap between sustainability commitments and actual outcomes. The method
used proved that LCA studies and PCO studies can complement each other. PCO
studies, looking at the interactions of actors responsible for the actual global flowing
of products, provide opportunities for minimizing the impacts identified by LCA
studies. Moreover, this thesis project has shown that there is scope for all types of
financial actors to reduce deforestation and build more sustainable global product
chains. Remote actors, such as foreign investors, have a concrete influence on a
local level and the power of changing the fate of vast areas of territories. Thus, the
financial root is of interest and worthy of further study for sustainable management.
Beskrivning
Ämne/nyckelord
Deforestation , Soy , Brazil , Financialization , Product Chain Organization , Sustainable management , Life Cycle Assessment