Deforestation in Brazil: Potential Revenue and GDP Losses
Video
November 9, 2020
Mario López-Alcalá and Juan Sampieri Land-use change for soy and beef production has historically been identified as the prevalent cause of deforestation and wildfires in the Amazon and Cerrado regions of Brazil. Traders of Brazilian beef and soy that do not comply with potential deforestation-free requirements could lose access to key markets, such as Brazil, China and the EU, potentially resulting in lost revenue and lower Brazilian GDP. The interactive chart below highlights estimated revenue and GDP losses under eight possible scenarios. Our recent blog post explores how these potential losses could in turn impact the spreads of corporate and sovereign bonds. How to interact with this plot: Select one or more markets adopting deforestation-free requirements at the bottom of the chart. Use the legend on the right to highlight one or more market and biome combination; hold the shift key to select multiple.
Loading chart...
Please wait.
As representative samples, we used the top three producers for each market by volume, which represented 38% of soy production and 49% of Brazil's beef production in 2017. Figures in the soy and beef columns might not add to the total column due to rounding. Source: Trase, MSCI ESG Research LLC.
Engaging Companies on Palm Oil Deforestation
Top palm oil buyers and producers have set zero-deforestation goals, with many committing to achieve this target by 2020
ESG in Mexico: At a Fork in the Road?
Emerging markets are not all the same when it comes to ESG. In Latin America, the proportion of lower-ESG-rated companies ranged from 16% to 78% of individual country indexes, based on market capitalization
The content of this page is for informational purposes only and is intended for institutional professionals with the analytical resources and tools necessary to interpret any performance information. Nothing herein is intended to recommend any product, tool or service. For all references to laws, rules or regulations, please note that the information is provided “as is” and does not constitute legal advice or any binding interpretation. Any approach to comply with regulatory or policy initiatives should be discussed with your own legal counsel and/or the relevant competent authority, as needed.