This aerial photo shows a deforested area of Amazonia rainforest in Labrea, Brazil in September. AFP
This aerial photo shows a deforested area of Amazonia rainforest in Labrea, Brazil in September. AFP
This aerial photo shows a deforested area of Amazonia rainforest in Labrea, Brazil in September. AFP
This aerial photo shows a deforested area of Amazonia rainforest in Labrea, Brazil in September. AFP

World's biggest fashion brands linked to deforestation in the Amazon, from Zara to Fendi


Selina Denman
  • English
  • Arabic

A new study of the fashion industry’s convoluted supply chains has linked a number of the world’s biggest brands to deforestation in the Amazon rainforest.

Conducted by Stand.earth, a supply chain research company, the report places a spotlight on tanneries and other companies involved in the production of leather and goods made from it in Brazil. The cattle industry is the single largest driver of deforestation in the Amazon rainforest and tropical forests globally, and Brazil has the largest cattle herd in the world, amounting to 215 million animals.

According to Stand.earth, Brazil has the largest cattle herd in the world, amounting to 215 million animals. Reuters
According to Stand.earth, Brazil has the largest cattle herd in the world, amounting to 215 million animals. Reuters

The report found that brands such as as Coach, LVMH, Prada, H&M, Zara, Adidas, Nike, New Balance, Teva, Ugg and Fendi have several connections to suppliers that are known to contribute to deforestation. For example, more than 50 brands have many supply-chain links to Brazil’s largest leather exporter, JBS, which is known to engage in deforestation. The company has recently pledged to eliminate deforestation across its global supply chain by 2035, but environmental groups have claimed this is insufficient.

While JBS is the country’s largest leather exporter, according to the report, “this problem is endemic of the entire Brazilian leather industry”. Tannery companies such as Minerva and Fuga Couros were also named as complicit.

Stand.earth analysed customs information obtained from several data providers, and cross-referenced this with data collected from numerous other sources to uncover hidden supply chains linking shoe and fashion brands to Amazon rainforest deforestation.

Their analysis does not prove a direct link between each fashion brand and Amazon deforestation. Instead, it highlights connections that increase the probability of individual garments being the result of cattle ranching in the Amazon.

Stella McCartney with Britain's Prince Charles at the Cop26 summit last month, where the designer called for a ban on the use of fur and leather. AP
Stella McCartney with Britain's Prince Charles at the Cop26 summit last month, where the designer called for a ban on the use of fur and leather. AP

Many of the fashion brands named in the report have publicly announced policies designed to distance them from companies that contribute to deforestation. The Stand.earth data suggests, however, that 22 of the 74 fashion companies identified are “potentially breaching their own policies against sourcing leather from deforestation”. The other two-thirds have no relevant policies in place at all.

At the recent COP26, the United Nations Climate Change Conference in Glasgow in the UK, ethical fashion designer Stella McCartney called for an outright ban on fur and leather across the fashion industry, highlighting its destructive qualities.

“I still don’t think many people truly understand the devastating impact that animal agriculture has on the planet,” she told The National. “Not only is it horrifically cruel, animal agriculture is behind 18 per cent of the world’s greenhouse gas emissions and is driving the deforestation of vital ecosystems like the Amazon. Leather production is also a human rights issue, poisoning tannery workers, often in developing countries.”

UAE currency: the story behind the money in your pockets
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Biog

Mr Kandhari is legally authorised to conduct marriages in the gurdwara

He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada

Father of two sons, grandfather of six

Plays golf once a week

Enjoys trying new holiday destinations with his wife and family

Walks for an hour every morning

Completed a Bachelor of Commerce degree in Loyola College, Chennai, India

2019 is a milestone because he completes 50 years in business

 

Padmaavat

Director: Sanjay Leela Bhansali

Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh

3.5/5

Silent Hill f

Publisher: Konami

Platforms: PlayStation 5, Xbox Series X/S, PC

Rating: 4.5/5

Brief scores:

QPR 0

Watford 1

Capoue 45' 1

11 cabbie-recommended restaurants and dishes to try in Abu Dhabi

Iqbal Restaurant behind Wendy’s on Hamdan Street for the chicken karahi (Dh14)

Pathemari in Navy Gate for prawn biryani (from Dh12 to Dh35)

Abu Al Nasar near Abu Dhabi Mall, for biryani (from Dh12 to Dh20)

Bonna Annee at Navy Gate for Ethiopian food (the Bonna Annee special costs Dh42 and comes with a mix of six house stews – key wet, minchet abesh, kekel, meser be sega, tibs fir fir and shiro).

Al Habasha in Tanker Mai for Ethiopian food (tibs, a hearty stew with meat, is a popular dish; here it costs Dh36.75 for lamb and beef versions)

Himalayan Restaurant in Mussaffa for Nepalese (the momos and chowmein noodles are best-selling items, and go for between Dh14 and Dh20)

Makalu in Mussaffa for Nepalese (get the chicken curry or chicken fry for Dh11)

Al Shaheen Cafeteria near Guardian Towers for a quick morning bite, especially the egg sandwich in paratha (Dh3.50)

Pinky Food Restaurant in Tanker Mai for tilapia

Tasty Zone for Nepalese-style noodles (Dh15)

Ibrahimi for Pakistani food (a quarter chicken tikka with roti costs Dh16)

UAE currency: the story behind the money in your pockets
DMZ facts
  • The DMZ was created as a buffer after the 1950-53 Korean War.
  • It runs 248 kilometers across the Korean Peninsula and is 4km wide.
  • The zone is jointly overseen by the US-led United Nations Command and North Korea.
  • It is littered with an estimated 2 million mines, tank traps, razor wire fences and guard posts.
  • Donald Trump and Kim Jong-Un met at a building in Panmunjom, where an armistice was signed to stop the Korean War.
  • Panmunjom is 52km north of the Korean capital Seoul and 147km south of Pyongyang, North Korea’s capital.
  • Former US president Bill Clinton visited Panmunjom in 1993, while Ronald Reagan visited the DMZ in 1983, George W. Bush in 2002 and Barack Obama visited a nearby military camp in 2012. 
  • Mr Trump planned to visit in November 2017, but heavy fog that prevented his helicopter from landing.
What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

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War

Director: Siddharth Anand

Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor

Rating: Two out of five stars 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: December 06, 2021, 8:12 AM