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Did Brazil's 'Dirty List' Prompt Starbucks and Nespresso to Stop Sourcing Coffee From Farm Caught With Slave-Like Conditions?
By Daniel Camargos
Eight months after slave labor was discovered at the Cedro II farm in the Brazilian state of Minas Gerais, Starbucks and Nestlé-controlled brand Nespresso — both of whom had quality certified the farm — said they would stop sourcing coffee there.
The decision by the two transnational companies came after the publication of the government's April "Dirty List" of employers — those caught with labor conditions analogous to slavery. The "Dirty List" is released biannually by what was previously the Ministry of Labor, now part of the Ministry of Economy, and the the first update under President Jair Bolsonaro.
The April 'Dirty List' includes 48 new employers. One of them is coffee producer Helvécio Sebastião Batista, who had been certified with Nespresso and Starbucks quality seals and used to provide coffee for both brands.
Nespresso responded: "In the light of the last report of the Ministry of Labor, we immediately suspended business with the producer in question and we will investigate the case. Farms providing coffee to the company are rigorously evaluated and inspected every year to meet the program's criteria. We will not accept otherwise and there will be no exception."
Starbucks responded, saying it will look into the incident and that it has suspended the farm from its supplier list because of the charges. The company, which boasts the world's largest chain of coffee shops, says the farm's practices previously complied with the C.A.F.E. certification seal, which follows "ethical and sustainable standards" developed in partnership with Conservation International and overseen by SCS Global Services. The next evaluation of the farm included in the "Dirty List" is expected to take place in September 2019.
A worker rakes coffee beans on a Brazilian plantation.
Marcel Gomes / Repórter Brasil
This wasn't the first time that auditors found slave labor at a Starbucks-certified coffee farm. In August of 2018, Repórter Brasil reported that 18 workers had been found in conditions similar to slavery at the Córrego das Almas farm, also known as Fartura. In September, Mongabay co-published that story.
The operation carried out by labor inspectors at the Cedro II farm in July 2018 found six employees in dire working conditions. Some were forced to work 17-hour shifts, from 6 a.m. to 11 p.m., and slept in substandard unhygienic housing, according to the government inspectors who rescued them.
Cedro II farm owner and manager, Helvécio Sebastião Batista, claims the charges filed against him are unfounded. "I'll do what I have to do. I filed a petition for a writ of mandamus, and I paid no fine," Batista said regarding his intention to appeal the Ministry's decision through the judicial system. A writ of mandamus is an order seeking to remedy defects of justice.
Meanwhile, at Cedro II and other properties managed by Batista, labor inspectors have found 19 more workers in slavery-like conditions, in addition to the six that caused his property's inclusion on the "Dirty List." Those properties lacked proper toilets and had no kitchen facilities. The workers also reported working exhaustive hours, in some cases until 11 p.m., often without their mandatory weekly day off.
In addition to holding Nespresso and Starbucks seals of good practice, Batista said that his farm was certified by Rainforest Alliance, which in turn informed Repórter Brasil that it would suspend its certification.
Cases of labor conditions analogous to slavery on coffee farms are recurrent. In 2018 alone, 210 workers were found in such conditions by inspectors. The number of workers toiling in slave-like working conditions in Brazil's coffee industry is now at the highest level in 15 years, according to Ministry of Labor statistics.
More About the "Dirty List"
With its new additions, the "Dirty List" now includes 187 employers caught exploiting labor in conditions similar to slavery. According to Article 149 of Brazil's Criminal Code, four elements define contemporary slavery: forced labor (which involves restricting freedom of movement); debt bondage (captivity linked to debts, often fraudulent ones); degrading conditions (work that denies human dignity, endangering a worker's health, safety and life); or exhausting working hours (leading workers to total exhaustion as a result of extreme exploitation of labor, also endangering their health, safety and lives).
The 48 companies newly included on the April 2019 "Dirty List" were monitored between 2014 and 2018. Before being added to the list, employers have a right to defend themselves with the Ministry of Economy.
Employers whose appeals fail remain on the list for two years. When they strike deals with the government, employer names are placed on a "watch list," and they may be excluded altogether after a year if they honor their commitments.
Investors, along with public and private banks, use the "Dirty List" to conduct risk analyses. Some Brazilian and international companies choose to avoid doing business with listed firms.
This story was produced via a co-publishing partnership between Mongabay and Repórter Brasil; a version in Portuguese can be read here.
Reposted with permission from our media associate Mongabay.
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By Randi Spivak
Slashing two national monuments in Utah may have received the most attention, but Trump's Interior Department and U.S. Forest Service have been quietly, systematically ceding control of America's public lands to fossil fuel, mining, timber and livestock interests since the day he took office.
A new report by Greenpeace International pinpointed the world's worst sources of sulfur dioxide pollution, an irritant gas that harms human health. India has seized the top spot from Russia and China, contributing nearly 15 percent of global sulfur dioxide emissions.
By Sue Branford and Thais Borges
Ola Elvestrun, Norway's environment minister, announced Thursday that it is freezing its contributions to the Amazon Fund, and will no longer be transferring €300 million ($33.2 million) to Brazil. In a press release, the Norwegian embassy in Brazil stated:
Given the present circumstances, Norway does not have either the legal or the technical basis for making its annual contribution to the Amazon Fund.
Brazilian President Jair Bolsonaro reacted with sarcasm to Norway's decision, which had been widely expected. After an official event, he commented: "Isn't Norway the country that kills whales at the North Pole? Doesn't it also produce oil? It has no basis for telling us what to do. It should give the money to Angela Merkel [the German Chancellor] to reforest Germany."
According to its website, the Amazon Fund is a "REDD+ mechanism created to raise donations for non-reimbursable investments in efforts to prevent, monitor and combat deforestation, as well as to promote the preservation and sustainable use in the Brazilian Amazon." The bulk of funding comes from Norway and Germany.
The annual transfer of funds from developed world donors to the Amazon Fund depends on a report from the Fund's technical committee. This committee meets after the National Institute of Space Research, which gathers official Amazon deforestation data, publishes its annual report with the definitive figures for deforestation in the previous year.
But this year the Amazon Fund's technical committee, along with its steering committee, COFA, were abolished by the Bolsonaro government on 11 April as part of a sweeping move to dissolve some 600 bodies, most of which had NGO involvement. The Bolsonaro government views NGO work in Brazil as a conspiracy to undermine Brazil's sovereignty.
The Brazilian government then demanded far-reaching changes in the way the fund is managed, as documented in a previous article. As a result, the Amazon Fund's technical committee has been unable to meet; Norway says it therefore cannot continue making donations without a favorable report from the committee.
Archer Daniels Midland soy silos in Mato Grosso along the BR-163 highway, where Amazon rainforest has largely been replaced by soy destined for the EU, UK, China and other international markets.
An Uncertain Future
The Amazon Fund was announced during the 2007 United Nations Climate Change Conference in Bali, during a period when environmentalists were alarmed at the rocketing rate of deforestation in the Brazilian Amazon. It was created as a way of encouraging Brazil to continue bringing down the rate of forest conversion to pastures and croplands.
Government agencies, such as IBAMA, Brazil's environmental agency, and NGOs shared Amazon Fund donations. IBAMA used the money primarily to enforce deforestation laws, while the NGOs oversaw projects to support sustainable communities and livelihoods in the Amazon.
There has been some controversy as to whether the Fund has actually achieved its goals: in the three years before the deal, the rate of deforestation fell dramatically but, after money from the Fund started pouring into the Amazon, the rate remained fairly stationary until 2014, when it began to rise once again. But, in general, the international donors have been pleased with the Fund's performance, and until the Bolsonaro government came to office, the program was expected to continue indefinitely.
Norway has been the main donor (94 percent) to the Amazon Fund, followed by Germany (5 percent), and Brazil's state-owned oil company, Petrobrás (1 percent). Over the past 11 years, the Norwegians have made, by far, the biggest contribution: R$3.2 billion ($855 million) out of the total of R$3.4 billion ($903 million).
Up till now the Fund has approved 103 projects, with the dispersal of R$1.8 billion ($478 million). These projects will not be affected by Norway's funding freeze because the donors have already provided the funding and the Brazilian Development Bank is contractually obliged to disburse the money until the end of the projects. But there are another 54 projects, currently being analyzed, whose future is far less secure.
One of the projects left stranded by the dissolution of the Fund's committees is Projeto Frutificar, which should be a three-year project, with a budget of R$29 million ($7.3 million), for the production of açai and cacao by 1,000 small-scale farmers in the states of Amapá and Pará. The project was drawn up by the Brazilian NGO IPAM (Institute of Environmental research in Amazonia).
Paulo Moutinho, an IPAM researcher, told Globo newspaper: "Our program was ready to go when the [Brazilian] government asked for changes in the Fund. It's now stuck in the BNDES. Without funding from Norway, we don't know what will happen to it."
Norway is not the only European nation to be reconsidering the way it funds environmental projects in Brazil. Germany has many environmental projects in the Latin American country, apart from its small contribution to the Amazon Fund, and is deeply concerned about the way the rate of deforestation has been soaring this year.
The German environment ministry told Mongabay that its minister, Svenja Schulze, had decided to put financial support for forest and biodiversity projects in Brazil on hold, with €35 million ($39 million) for various projects now frozen.
The ministry explained why: "The Brazilian government's policy in the Amazon raises doubts whether a consistent reduction in deforestation rates is still being pursued. Only when clarity is restored, can project collaboration be continued."
Bauxite mines in Paragominas, Brazil. The Bolsonaro administration is urging new laws that would allow large-scale mining within Brazil's indigenous reserves.
Hydro / Halvor Molland / Flickr
Alternative Amazon Funding
Although there will certainly be disruption in the short-term as a result of the paralysis in the Amazon Fund, the governors of Brazil's Amazon states, which rely on international funding for their environmental projects, are already scrambling to create alternative channels.
In a press release issued yesterday Helder Barbalho, the governor of Pará, the state with the highest number of projects financed by the Fund, said that he will do all he can to maintain and increase his state partnership with Norway.
Barbalho had announced earlier that his state would be receiving €12.5 million ($11.1 million) to run deforestation monitoring centers in five regions of Pará. Barbalho said: "The state governments' monitoring systems are recording a high level of deforestation in Pará, as in the other Amazon states. The money will be made available to those who want to help [the Pará government reduce deforestation] without this being seen as international intervention."
Amazonas state has funding partnerships with Germany and is negotiating deals with France. "I am talking with countries, mainly European, that are interested in investing in projects in the Amazon," said Amazonas governor Wilson Miranda Lima. "It is important to look at Amazônia, not only from the point of view of conservation, but also — and this is even more important — from the point of view of its citizens. It's impossible to preserve Amazônia if its inhabitants are poor."
Signing of the EU-Mercusor Latin American trading agreement earlier this year. The pact still needs to be ratified.
Council of Hemispheric Affairs
Looming International Difficulties
The Bolsonaro government's perceived reluctance to take effective measures to curb deforestation may in the longer-term lead to a far more serious problem than the paralysis of the Amazon Fund.
In June, the European Union and Mercosur, the South American trade bloc, reached an agreement to create the largest trading bloc in the world. If all goes ahead as planned, the pact would account for a quarter of the world's economy, involving 780 million people, and remove import tariffs on 90 percent of the goods traded between the two blocs. The Brazilian government has predicted that the deal will lead to an increase of almost $100 billion in Brazilian exports, particularly agricultural products, by 2035.
But the huge surge this year in Amazon deforestation is leading some European countries to think twice about ratifying the deal. In an interview with Mongabay, the German environment ministry made it very clear that Germany is very worried about events in the Amazon: "We are deeply concerned given the pace of destruction in Brazil … The Amazon Forest is vital for the atmospheric circulation and considered as one of the tipping points of the climate system."
The ministry stated that, for the trade deal to go ahead, Brazil must carry out its commitment under the Paris Climate agreement to reduce its greenhouse gas emissions by 43 percent below the 2005 level by 2030. The German environment ministry said: If the trade deal is to go ahead, "It is necessary that Brazil is effectively implementing its climate change objectives adopted under the [Paris] Agreement. It is precisely this commitment that is expressly confirmed in the text of the EU-Mercosur Free Trade Agreement."
Blairo Maggi, Brazil agriculture minister under the Temer administration, and a major shareholder in Amaggi, the largest Brazilian-owned commodities trading company, has said very little in public since Bolsonaro came to power; he's been "in a voluntary retreat," as he puts it. But Maggi is so concerned about the damage Bolsonaro's off the cuff remarks and policies are doing to international relationships he decided to speak out earlier this week.
Former Brazil Agriculture Minister Blairo Maggi, who has broken a self-imposed silence to criticize the Bolsonaro government, saying that its rhetoric and policies could threaten Brazil's international commodities trade.
Senado Federal / Visualhunt / CC BY
Maggi, a ruralista who strongly supports agribusiness, told the newspaper, Valor Econômico, that, even if the European Union doesn't get to the point of tearing up a deal that has taken 20 years to negotiate, there could be long delays. "These environmental confusions could create a situation in which the EU says that Brazil isn't sticking to the rules." Maggi speculated. "France doesn't want the deal and perhaps it is taking advantage of the situation to tear it up. Or the deal could take much longer to ratify — three, five years."
Such a delay could have severe repercussions for Brazil's struggling economy which relies heavily on its commodities trade with the EU. Analysists say that Bolsonaro's fears over such an outcome could be one reason for his recently announced October meeting with Chinese President Xi Jinping, another key trading partner.
Maggi is worried about another, even more alarming, potential consequence of Bolsonaro's failure to stem illegal deforestation — Brazil could be hit by a boycott by its foreign customers. "I don't buy this idea that the world needs Brazil … We are only a player and, worse still, replaceable." Maggi warns, "As an exporter, I'm telling you: things are getting very difficult. Brazil has been saying for years that it is possible to produce and preserve, but with this [Bolsonaro administration] rhetoric, we are going back to square one … We could find markets closed to us."
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