New CRR Report Published: SLC Agrícola, Planned Deforestation Could Contradict Buyers’ ESG Policies

The report, which builds on the company profile on SLC Agrícola published by Chain Reaction Research in September 2017, reviews the company’s sustainability and business risks in the last year. The initial report showed that from 2011 to 2017, SLC Agrícola cleared 39,887 ha of land of its original vegetation, of which 30,000 ha was classified as Cerrado forest. SLC Agrícola faced potential risks of losing clients with zero-deforestation commitments, as well as an overvaluation of its land portfolio. This update discusses relevant developments that have taken place since.

Key Findings of the report:

  • SLC Agrícola’s business model is moving away from an aggressive growth model based on the transformation of undeveloped land to farmland. 

  • However, SLC Agrícola has requested environmental licenses for clearing 16,938 ha of land. 

  • At Fazenda Parnaíba in Maranhao, planned land clearing would total 4,775 ha.

  • SLC Agrícola’s planned deforestation and lack of zero-deforestation commitment expose the company to a number of business risks. 

  • Its planned deforestation could raise concerns with equity investors.

  • Its appreciated share price could face challenges as a result of deforestation risks. 

Click here to read or download the full report on the CRR website.

For more information, please contact Tim Steinweg.