The increasing demand for natural resources spurs the worldwide growth of the agricultural, mining, oil & gas, fishery and forestry sectors. This trend on the one hand threatens the environment, biodiversity and local communities, but on the other hand offers opportunities for development for the less developed countries.
Civil society organisations, governments and companies that want to operate in these resource chains in a sustainable manner therefore need a clear insight in the dynamics of commodity chains: which are the opportunities and threats, and which actors and factors can influence them?
Profundo analyses the trade and investment relations in commodity chains and brings the balance of power to the surface. Based on such research, Profundo advises about possibilities to make commodity chains ever more sustainable.
Agriculture is the most important economic activity worldwide. The agricultural sector produces the primary needs for humans, and is the largest employer in the world. Agricultural activity varies from small-scale foodproduction for small communities, to large-scale industrial agricultural corporations that produce for the global market.
Besides being very important, the agricultural sector is also very polluting. It causes a large portion of the world's CO2 emmisions and a variety of chemicals and damaging fertilizers are used in production processes. The turbulent growth of the agricultural sector also leads to deforestations, loss of biodiversity and serious social issues. Moreover, government policies in industrialised countries and the economic power disequilibrium in the world make it difficult for farmers in developing countries to make a profit on the global market.
Profundo studies the production and trade chains of the agricultural sector, and examines the economic effects. Profundo also analyses the financing of large-scale agricultural activities and government policies concerning agricultural issues. Besides, Profundo advises social organizations, governments and corporations who aim to support sustainability within the agricultural sector.
Cocoa is predominantly used for the production of chocolate. Cocoabutter is also used for shampoos and other care products. About one third of the cocoa that is being produced, comes originaly from Western Africa (Ivory Coast, Ghana, Nigeria and Cameroon). Other large cocoa producing countries are Indonesia and Brazil. The cocoasector struggles with labour conditions on plantages in Western Africa, with environmental problems and the low prices many cocoa farmers get for their products.
Profundo analyses the global production and trade chains of cocoa, and advises the social organizations about increasing the sustainability within this production chain.
The global fruit market is very diverse, this is because there are so many different ways to grow fruit. Predominantly (sub)tropical fruit, especially citrusfruit, is increasingly traded internationally. Although this can be an interesting source of revenues for developing countries, there are also negative social and environmental aspects that come along with it, such as the use of water, the use of poison, the transport towards the market outlet and the labour circumstances of the workers on the plantations.
Profundo researches the production and trade chains of the different kinds of fruit and tries to get insight in the possible stimulation for an increase of the sustainability within these chains.
As a consequence of the growing global demand for food products, washing powders and bio fuels, the palmoil sector in Indonesia, Malaysia and other countries in South East Asia is enormously growing. This causes a loss of tropical forests, which threatens the biodiversity and loss of land and income possibilities for the local communities.
Profundo researches the companies who are active within the palmoil areas and the financial instutions financing these companies. Profundo was involved with the creation of the Roundtable on Sustainable Palm Oil (RSPO), who formulated conditions for the sustainable production of palmoil. Produndo is currently cooperating with social organizations and banks to implement the RSPO-conditions by getting as many as possible banks operating in the Indonesian palmoil sector involved.
The global consumption of pork meat is rising rapidly, as more and more people switch from vegetable proteins to animal proteins in their diet. The global production of pork meat however has a devastating effect on the world's natural resources, as forests, biodiversity and local communities are sacrificed to the ever expanding production of feed commodities such as soybeans. The growing global consumption of pork meat therefore certainly is not sustainable.
Furthermore, environmental problems occur in regions where the production of pork meat is highly concentrated, because of an access in fertilizer and smell problems.
The production of chicken meat in industrialized countries is based on the vast import of cattle fodder, predominantly soy.This makes the demand for poultry an important stimulator of deforestation and other environmental and social problems that come along with the soy production.
Moreover the European consumers prefer poultry, which is why poultry abattoirs earn relatively high profit margins. The rest of the chicken meat is therefore being exported for marginalized costs to other parts of the world such as Africa. Because the imported poultry there is sold under the marketprices, the African producers of chicken meat lose their marketshares, which causes further dependence on import for the local economies.
Profundo analyses the production and distribution chains for chicken meat, to identify which companies do play a role within this area and how the sustainability can be stimulated.
Rice belongs to the most produced and consumed grains in the world. Almost 80% of the globally produced rice comes from six Asian countries: China, India, Indonesia, Bangladesh, Vietnam and Thailand. Although the rice area is highly important for very large communities, the labour circumstances on the ricefiels are usually far from good. Unequal balances of power within the global rice trade often have negative consequences for small producers.
Profunde analyses the global production and trade chains of rice, and also consults social organizations about the possibilities for an increase of the sustainability within the rice area.
Soy is after rice, wheat and corn, the most cultivated vegetation in the world and the production increases fast, especially in South America. The vast expansion leads to enormous deforestation and all kinds of problems for the local community.
Due the high protein contents and digestibility of soybeans, it is very suitable as cattle fodder for pigs, poultry and cows, which is essential for the production of meat, eggs and diary products. Besides that soyoil is being used for margarine, sauces and washing powders. The Netherlands has a central role in the soy sector as a central distributionpoint for the intensive stock farming in Western Europe.
Profundo researches the product channels and financing of the soy production chain. Profundo also analyses the government policies within this area and consults the possibilities for an increase of the sustainability.
Sugar is acquired from sugercanes in (sub)tropical countries and in moderate areas from sugar beets. The productioncosts of sugercanes is in average higher than the costs of sugar beets, but sugar beets farmers in Europe and the United States have been protected by subsidies and other government support for decades now. They are slowly cutting down the protection, but it is still a long way towards a free sugar market.
And it is even more difficult to find solutions for the sustainability problems within the sugar area, such as deforestation and bad labour conditions on the sugar plantations. The increasing demand for biofuels which is needed for the sugar production, makes the need for a solution even more urgent.
Profundo researches the product routes and financing for the sugar production chain. Profundo also analyses the government policies within this area and consults the possibilities for the increase of the sustainability.
The international market in vegetables has more limitations, but is more diverse than the international trade in other agricultural products. The trade is highly increasing, as a consequence of the demand from industrialized countries for fresh products such as peppers and beans, even outside the season. The vegetables are therefore often transferred by plane, which causes a high CO2 emission and damage to the environment around airports.
Profundo researches the production and trade chains for the different kinds of vegetables and tries to get insight in the possibilities for stimulating an increase of the sustainibility within these chains.
As a cause of the global economic growth the demand for energy has immensly increased. Which caused an increase in prices for fossil fuels in a relatively short period. Despite the contribution for climate change a lot of money has been invested in the oil, gas and coal mining, which regularly has negative influences for the local population and the environment. Although real non-polluting energysources such as the sun and the wind are currently increasing, the nuclear energy and oil subsitutes still profit from their undeserved attention for climate change. Nuclear energy is dangerous and polluting, while oil substitutes cause deforestation and push aside the foodproduction.
Profundo researches the mining for energysources and the different trade chains: which corporations are active in these processing chains and who finances them? Profundo compares financial instution investments in several energysources and calculates their indirect contribution on climate change. Besides Profundo provides consulations on the increase of sustainibility within the energychains.
Governments from Europe and the United States see an important answer for the climate problem in the stimulation of biofuels. An easy answer, as the partly replacement of fossilfuels by biofuels demands large changes in our transportsystem and way of living. But the largescale stimulations of biofuels causes the chopping down of forests to make a way for plantations in palmoil, soy and sugercanes. The environmental and social consequences are immense, moreover because the prices of foodproducts will be under pressure as the demand for biofuels increases.
Profundo researches which companies are involved with the production of and trade in biofuels and who finances them. Profundo also analyses the consequences for humans and the environment caused by the government stimulations for biofuels.
Although the smallscale waterpower projects can be considered as a sustainable alternative for fossil fuels, the vast waterpower projects often cause harm to humans and their environment. As a consequence of accumulation of water on the side of the dam, large areas are under water, whereas the other side of the dam, which was previously fertile, now is completely dehydrated and unlivable. Both sides of the dam can have immense influences on the local community: their supply of food sources dissapear and whole villages are forced to relocate.
Profundo researches the financing of largescale waterpower projects and the question whether financial institutions demand efficient social and environmental conditions concerning the financing of certain projects.
Increasing oil and gas prices caused a renewed interest in nuclear energy, some even call this a 'green alternative' for fossil fuels. But this is not even close to the truth: nuclear power stations are still dangerous and there still is not a sufficient solution for the processing of nuclear waste. Besides, the winning of uranium, the building material needed for the supply of nuclear energy, causes serious damage to humans and the environment. Radioactive mine disposal pollutes the wide areas of uranium mines.
Profunde researches the uranium production chain and the supply and sales chains of nuclear power stations. Besides Profundo tries to provide insight in the real costs of nuclear energy, and researches which financial institutions are involved in the financing of new mines and nuclear power stations.
The extraction and transport of oil and gas threaten the vulnerable ecosystems and biodiversity in the different parts of the world. Besides that, is the global use of fossil energysources (such as oil, gas and coal) the main cause of climate change. And the inhabitants of those regions full of oil and gas sources often experience more economic and social disadvantages than advantages as a consequence of the oil and gas extraction.
Profundo analyses the productionchain of oil and gas producers and researches the financing of the oil and gas producing companies. Profundo also researches in how far the financing of the oil and gas area contributes to the climate change.
Real renewable energysources such as the sun, wind and water, are not being used enough, partly because of the shortage of riskcapital or the large interests of governments or oil and gasconcerns. But the growing interest in the market, partly due the discussion on climate change, will increase the role of sustainable energysources.
Profundo researches the balance of power within the energysector and other restraints that influence the development of sustainable energysources. Profundo also researches the possibilities for other financial institutions who are willing to invest in sustainable energy production.
An increasing global population and increase of income among vast populations causes an enormous increase in the demand for animal proteins, such as fish. The current total cathing capacity for worldwide fishing is about twice a big as the capacity of global oceans to 'produce' fish. As a cause of overfishing many fish species declined in number and some of them are threatened to become extinct. But even those fish and animal species, such as turtles, seabirds and marine mammals, which are not a target for fishing, are threatenend to become extinct as they are used for non-sustainable fishing methods as sidecatching or no longer have enough power sources. Even the social consequences can be immense. Through largescale, industrial fishingcorporations working for exportmarkets often operate in countries with a vast market of smallscale, craft fishers, who serve the local markets, are being threathened as well. Local communities will run out of natural power sources, which causes a threat to their food security.
The large demand for shrimps from the Asian, European and American consumers, leads to a vast growth of tropical shrimp breeding in many tropical countries. To increase the number of coast areas accessible for the shrimp cultivation, there has been a largescale deforestation of mangroveforests. At the moment more than 35% of the worldwide mangrove forests are chopped for shrimp breeding. Besides the loss of the biodiversity, this can also be dangerous for the local community. As a consequence of the chopping down of mangrove forests the tsunami of December 2004 got through much further than would have been the case if the mangroveforests had still been there. The breeding of shrimps also leads to the pollution of coast areas. The local communities loses its existing and income possibilities due the shrimp breeding and is being expelled from its territories.
Profundo researches the trade chains of the shrimp areas and provides advice about the possibilities to increase the sustainability of this sector.
Cod, whiting, heek, pollack and other kinds of whitefish belong to the most consumed species of fish on the northern hemisphere. The growing demand for whitefish threatens the existence of these species. The industrial fishing of whitefish has to become more sustainable, restrained with clear quota's to intercept the extinguishment of these species. And fishing companies should at least to follow the criteria of the Marine Certification Council (MSC).
Profundo researches the companies who are active in this sector and the financial institutions who are involved with the financing.
The forestry sector influences the global proceedings of deforestry and the loss of biodiversity. The chopping of forests surpasses the time needed for recovering, through which the ecosystem is deregulated: impoverishing of the earth, disruption of the waterbalance and disappearance of territories with flora and fauna. Deforestation also influences the local communities who are depending on the forests for food and income. Besides, the deforestation highly contributes to the proceedings of climate change, especially for peat-soils.
Profundo researches which companies within the forestry sector contribute to the deforestation and social conflicts and who finances them. Profundo is also searching for possible investment and marketing possibilities for sustainable wood and paper producers. And Profundo researches the role of government policies concerning deforestation.
The pulp and paper industry plays an important role concerning the mondial process of deforestation and the loss of biodiversity. To 'feed' the pulp industry, regularly biodiverse forests are being replaced for plantations with fastgrowing wood (such as eucalyptus), which causes scarcity in water as a consequence of the large consumption of water by these plantations. Local communities often have to make a way for such plantations and lose their food and income sources. Moreover many pulp companies are built without the guarantuee of a sufficient production of sustainable wood, wich stimulates the over-utilization of woods.
Profundo researches which companies within the paper industry contribute to the deforestation and social conflicts, and who finances them. Profundo also searches for marketing-possibilities for those companies who produce sustainable paper. Besides we research the role of government policy concerning the deforestation.
Over-utilization of wood chopping, illegal or not, leads to deforestation and the loss of biodiversity in many countries, both in tropical and moderate areas. Forests are being chopped faster than they are able to recover, which deregulates the ecosystems: impoverishing of the ground, disruption of the waterbalance and the dissapearance of the habitats of flora and fauna. Deforestation also influences the communities who depend on food and income from the forests. Besides the deforestation contributes to the process of climate change, especially on peat-moor areas.
Profundo researches which timber companies cause deforestation and social conflicts and whom finances them. Profundo is also searching for capital and an increase of marketing possibilities for producers of sustainable wood. Besides we research the role of governmentpolicies concerning deforestation.
Due the enormous growth of the international demand for commodities, it is important that national and international governments policies concerning trade, development, environment, energy, food safety, climate change and agriculture are being equalised in a coherent and innovative way. How can developmental changes be set in motion without damaging the environment, biodiversity and local communities? Understanding these issues requires an integral view in the dynamics of the different commodities sectors: what are the opportunities and threats and which actors and factors can influence them?
Profundo has extensive experience analysing commodity chains. Building on this experience, Profundo does comparative research on the different commodity chains with respect to all the relevant social, environmental, economic and political characteristics. This approach enables our clients to compare the different policy initiatives and voluntary regulations within the commodity chains, and learn lessons from the past.
Next to the industrialized countries now rising economies such as India and China import more and more mineral commodities, which causes an immense increase of its prices. And obviously the largescale miningcompanies experience an increase of the profits. The (Southern) countries where most of the mining corporating are located hardly profit from thes increasing prices, taxes are still low and most of the ores are not being processed locally.
Local communities and nature in the meanwhile have to make a way for the large mining corporations who often pollute the water and air in the wide environment seriously. The miningemployees work under hard and dangerous circumstances, often for low wages and bad conditions. HIV and other infectious diseases spreak out fast in the miningemployeehuttings. And the mining of mineral commodities often is a source for conflicts and corruption.
Profundo analyses which companies in which way are active within the different mineral commodity chains, unravels commercial chains and researches how miningcorporations are financed. Profundo consults social organizations to find new strategic possibilities to improve the contribution of the mining sector to the sustainable production: more employment possibilities and added value, better employment circumstances and wages, less social conflicts and environmental pollution. Besides Profundo analyses which legal and political instruments can be used for this.
The production of aluminium needs a lot of energy, which is often produced by large scale hydro-electric power stations, at the expense of biodiversity and local communities.
Coal is an energysource which - now the oil'prices have reached historical heights - came into the vogue again. Due the high emission of CO2, both industrialized and developing countries are building new coal power stations. Besides the combustion of coal, the gathering of coal is also polluting the air, water and earth. While the gathering itself creates social problems as well. Enormous daily mines expell the local community from their land and take away their existing possibilities. The mineworkers often have to deal with dangerous labour circumstances, low wages and a lack of labour and organizations rights.
Profundo tries to get insight in the coal production chain and researches which financial institutions are involved with the financing of new mines and coal power stations. Profundo also supports local NGO's with the development of international campaigns to, through financers and clients, influence mining companies.
Copper is used for electricity cables, electronics, building material, machines, cars and lots of consumer products. Like many other metals the price for copper increased enormously during the past few years, which causes a large number of new plans for copper mines in Africa, Asia and Latin America. An important region for the copper mining is the Copperbelt-region at the borderarea of Zambia and Democratic Republic of Congo. The mines in this region are notorious for their bad labour circumstances. But the privatization of the copper mines in Zambia - under the pressure of the multilateral and development banks - also caused a lot of discussions. Vast mining concerns do not pay enough taxes and royalties, which is why the government has a shortage for socioeconomic development investment. And like other building materials the presence of copper tends to attract corruption.
Profundo analyses the copper chain and researches the involvement of Dutch and international actors with the gathering, trade, processing and financing of copper.
Diamonds have a two sided image. The stone is still one of the most valuable and appreciated gems in the world and diamonds are associated with wealth, status and glamour. The past few years there has been much talking about diamonds because of its role in bloody conflicts in the countries such as Sierra Leone and Liberia. Although the 'blood diamonds' - stones that were used to finance these conflicts got enormous international attention, the average diamonds also create problems concerning the environment and human rights. The largescale mining industry disturbs and pollutes the eco systems. In some countries local communities are banned from their land by the mining industry, the activities in the mines are dangerous and there is hardly any investment in the basic needs for the inhabitants of the mining industry regions.
Profundo researches the production chain of diamonds and the financing. Profundo is searching for strategic possibilities to increase the profitibility of the mining industry for the local communities in the production countries.
Gold has been a valuable mineral within living memory. Nowadays as well the golden jewelry as other properties are a sign of wealth and status. But unfortunately the gathering of gold is still coupled with vast social and environmental issues. During gathering and processing procedures poisened matters and heavy metal are used, which is being dumped in the ground or rivers. Not only does this influence the lifes of animals and plants in and around these rivers and land, but the health of humans in the wide environment as well. In and around goldmines people with a high doses of metal in there bodies were found, but also skin and other diseases are caused by the pollution of the mines.
Profundo researches the financing of goldmines and tries to get insight in the trade and processing chains. Profundo also consults the social organizations concerning the possible influence on this sector.
Two-third of the global nickel gathering is being used for the production of rustless steel, which is used for construction, pipelines, machines, bridges, cars and so on. Besides that, nickel is used for batteries, coins and catalysts.
The global demand for nickels is growing fast. But like other minerals commodities, the worldwide uncomplicated available stock of nickel is declining. New nickel mines are now often created in rural areas, who are due their location often part of the most valuable ecosystems on earth. The development of these nickelmines, which is coupled with the pollution of the air, water and ground, does not only threaten the biodiversity in these areas but the existing possibilities for the local communities as well.
Profundo researches the financing of the nickel mines and tries to get insight in the trade and processing chains. Profundo also consults the social organizations and the possibilities to influence this sector.
Platinum and alike metals such as palladium and rhodium are predominantly gathered in southern Africa and Russia. While most of these metals in Europe are used for the production of exhaust catalysts who ought to make our air cleaner, the gathering of platinum is very polluting and CO-2 intensive.
Profundo tries to get insight in the platinum production chain and researches which financial institutions are involved with the financing of the new mines. Profundo also advises about the possibilities for an increase of the sustainability within this production chain.
Despite the revival of interest for nuclear energy there is an increased realization that the oil and gas supplies are finite, the easy accesible uranium is also running out of stock. This leads to enormously high prices and many plans for new uranium mines. But the gathering of uranium is one of the most polluting and dangerous mining activities. Radio active mine disposal pollutes the wide environment of uranium mines, which threatens the biodiversity and health of vast communities.
Profundo tries to get insight in the uraniumproduction chain and the provision and distribution chains of power stations. Profundo tries to get insight in the real costs of nuclear energy, and researches which financial institutions are involved with the financing of new mines and power stations. Profundo also helps the local NGO's with the development of international campaigns, through the financers and clients, to influence the uranium companies.
Corporate Social Responsibility (CSR) forms an increasingly important part of general management. Producers, traders, financiers; in all branches people increasingly realise that companies by doing their daily job have significant effects on social and environmental problems near home, but more often, at a larger distance.
Profundo has extensive experience with various CSR-themes, and knows how these themes play a role in different commodity and production chains. Profundo uses this knowledge to advise companies and governments with respect to the implementation of their CSR policies.
Climat change is still 'hot', mainly due the influence of Al Gore's documentary and the recent climate meeting on Bali. The awareness that many things have to be organized differently in order to stop the current change in the global climate, becomes more and more aware. How we can transport people, transport commodities, fulfill our needs for energy and food, what kind of houses and offices are being built: all these areas need an investement in newer products, technologies and productproceedings. Everybody has to make a contribution: consumers, governments and corporations. Banks and other financial institutions have another responsibility, they have to supply the needed capital for innovative products and production proceedings which we need to fight the climate change.
Profundo analyses the CO2 intensity of productionchains and the investment- and creditgrants of financial institutions. Profundo looks for innovative possibilities for corporations to make a real change and contributions to stop the climate change.
Companies and government, large or small, more and more realize that their products and production proceedings influence the global environmental and social inequality in the world. Corporate Social Responsibility (CSR) increasingly reaches the conduct of business, but an increase of sustainability of products and production proceedings is a hard and complicated process.
Profundo develops, in collaboration with clients, innovative propositions for the preservation of the conduct of business of financial institutions and corporations who operate in the commodity sectors, and how governments can stimulate this.
Besides investing in countries with repressive regimes, companies can get involved with the violation of human rights in different ways. This can happen when the companies themselves or their suppliers have bad and dangerous labour conditions, long working hours, low wages or the lack of freedom to unite and organize trade unions. But human rights can also be violated when agricultural, forestry or mining companies ban the local or indigenous communities from their areas. As their landrights are being violated, which are often based on the traditional laws, and they lose their means of existence.
Profundo analyses how the rights of employees and local communities within the different commodities and supply chains, are being violated. Profundo also researches which financial institutions are involved with such chains.
Quite a few countries do not have a democracy but suppressive regimes, who forbid the trade unions and social organizations, freedom of speech and discriminate certain local communities on purpose. Companies who carry on business or invest in such countries, often supply extra income for the regimes. Companies and financial institutions have to be aware of these possible dangers.
Profundo researches which companies carry on business or invest in countries with suppressive regimes. Profundo also consults institutional investors on their investments in such companies.
Products from the military industry cause victims in weaponed conflicts every day. Some weapons, such as landmines and clusterboms, still cause accidents and victims years after the conflict. The deceased and injured in these cases are predominantly innocent citizens, among which many of them are children. Controversial weapons, like chemical and biological weapons or clustermunition have economical and social consequences on the longer term. Explosive leftovers or other material can cause dangers for citizens on a large scale; agricultural areas and infrastructure become useless, and the cleaning costs a lot of money or even human lifes.
Profundo researches the financing of the military industry by banks and institutional investors. Profundo also researches the long term economic effects of landmines and clustermunition in conflictzones.
The role of financial instutions is crucial when it comes to striving for more sustainable and just economic development. They make investments in numerous other corporations possible through their role as capital suppliers (by loans or shares). Through these activities they undertake the risk of a contribution to environmental pollution, threat of the biodiversity, defilation of human rights and other social issues. On the other hand, they also have the chance to play a facilitating and stimulating role in sustainable investments, which are highly important for the society.
Profundo researches which financial institutions are involved with specific corporations, sectors and corporate responsibility themes. We analyse how financial institutions can effectively disguise investments that are harmful for humans and the environment, but also what financial insitutions currently do to create sustainable economic development. We advise financial institutions about responsible investments and financing and research the possible role of the goverment within this issue.
Many private investors, but institutional investors like pension funds, insurance companies and social organizations as well, have a vast amount of their assets administered by external asset managers. These asset managers can be part of a bank or insurance company, or independent financial institutions. Regularly it is not obvious for investors what these asset managers precisely do with the entrusted money. Do they, for example invest in notorious environmental polluters or human rights busters? Or do they invest in companies who actively work on sustainable production and production methods?
Profundo analyses what asset managers do with the investors' entrusted money and which social and environmental standards they use for their investments. Profundo also researches the possible role of asset managers concerning the financing of sustainable operating corporations. Besides we consult asset managers on the completion of their responsible investmentpolicy.
Banks are essential for companies: they supply loans, help releasing shares and obligations and offer services as a financial advisor or intermediate. Banks have the choice to cooperate with certain companies - for example those who contribute to the pollution of the environment, deforesting, threats to the biodiversity, conflict about landrights, defiliation of labour laws or weapon supply - or not.
Profundo researches which banks are involved with the financing of companies who cause harm to humans and/or the environment and what they do to avoid involvement. Profundo tries to help NGO's to make them understand the role of companies and their possible role through advise and workshops. Profundo also thinks along about possible governmental sustainability policies for the banking sector.
Export Credit Agencies (ECA's) are financial institutions who offer financial support for those corporations investing in foreign countries, through governments. This financial support consists out of exportcredits, through the assurance of exportcredits provided by suppliers and banks, or other financial instruments. To promote export sometimes those companies who cause serious harm to humans and the environment or those who operate in suppressive regimes, are also financed by ECA's.
Profundo researches the involvement of ECA's through the financing of specific projects, companies or sectors. Profundo also analyses what ECA's do to avoid these kind of involvements.
The role of government regulation concerning the financial sector is increasing. Besides traditional goals such as the guarantee of a stable financial system, regulation concerning the payment transactions, consumer protection, lately more attention is paid to new goals like the prohibition of money laundering and financing of terrorism. Though there is still a lack attention whithin the financial sectorial regulation, for the involvement of financial institutions with companies who cause severe damage to humans and the environment, through which financial institutions run financial risks but also integrityrisks.
Profundo researches, also in cooperation with AIDEnvironment, the national and European policy possibilities to pay more attention to the risks of financing that can cause damage to humans and the environment.
Pension funds own large capital which makes them influential shareholders of thousands of companies. They can use this influence, for example to deny investments to those who severly pollute the environment or violate human rights. Or they can stimulate the majority of companies to invest in sustainable production and productionmethods. Moreover pension funds can offer access to capital for innovative companies
Profundo researches where pension funds invest their capital and how far they take social and environmental criteria into consideration in their investment policy. Profundo also researches the possible influence of pensionfunds in financing in sustainable productive corporations, for example the timber and papersector. And we advise pension funds on their corporate responsibility investmentpolicy.
The market for sustainable produced products and energy is increasing, and a large number of sustainable investments turn out to be profitable on the longer term. Still, a lot of entrepreneurs who use production methods that cause none or hardly any damage to humans and the environment experience difficulties finding capital.
Profundo increases its research on financing possibilities for those companies who operate on a sustainable basis, for example within the timber and paper industry. Through consultations with banks, pensionfunds and property managers we seek for innovative possibilities for financing sustainable investments.
Profundo researched the involvement of European Export Credit Agencies (ECA's) in financing carbon intensive industries. The study analyzes all export credits and credit guarantees provided by the 21 ECA’s in EU-member countries in the past six years (2004-2009) to eleven carbon-intensive industries.
Producers, traders, financiers; in all branches people increasingly realise that companies by doing their daily job have significant effects on social and environmental problems near home, but more often, at a larger distance. 