Report: Soybean sector slow to adopt voluntary sustainability standards

As a uniquely nutritious food source, soybeans have a significant and growing impact on the planet. Butonly a small fraction of soybean production complies with voluntary sustainability standards (VSSs) thatcould address some of the sector’s critical environmental and social challenges, according to a new report from the International Institute for Sustainable Development (IISD). 

“Soybean production has been linked to rampant deforestation, biodiversity loss, excessive use of herbicides, and human rights violations,” says Vivek Voora, an author of the report and associate with IISD. “While adoption has been growing, just 1.8% of soybeans are VSS compliant with the three main schemes in the sector.”  

Between 2008 and 2016, VSS-compliant production grew by a compound annual growth rate (CAGR) of 2.62%, to represent at least 1.62% of total production. From 2016 to 2018, the CAGR was 6.65%, for a1.8% global VSS-compliance rate. 

By 2018 production volume, the largest VSSs in the sector are Round Table for Responsible Soy (4.5 million tonnes), ProTerra Foundation (3.5 million tonnes), and Organic (800,000 tonnes). 

Increasing compliance among producers would likely improve the sector’s environmental and social performance, as many VSSs operating in the sector encourage producers to adopt sustainable practices to prevent deforestation, enhance ecosystem rehabilitation, and protect rare and threatened species. They also promote practices that protect basic labour rights and support decent working conditions.  

Other mechanisms have also been established to mitigate the negative environmental impact of soybean cultivation, including the Amazon Soy Moratorium in 2006 and the Cerrado Manifesto in 2017, which have been signed by various supply chain actors to address sustainability challenges in Brazil. 

Soybeans are one of the only plant-based protein sources with nine essential amino acids and are an important source of protein for both humans and animals, with 85% of the crop’s cultivation becoming animal feed. 

“In many ways, soybeans are a hidden commodity, often nourishing the animals that are eventually consumed as meat,” says Voora. “Consumers often don’t have a direct connection to soybeans and how they are produced and processed. So they haven’t demanded sustainability as they have for other commodities, such as coffee and cotton.” 

“If consumers demand better environmental and social performance in the sector, we will see buyers and traders making ambitious sustainable sourcing commitments.”  

Large actors have a huge impact in the sector, as the top five soybean traders and exporters account for nearly 90% of the total market. Many large soybean traders and processors have developed their own schemes rather than using third-party standards. 

“China is also a major player, representing the world’s largest soybean importer and consumer,” Voora says. “Developing demand for VSS-compliant soybeans in China could be transformational.” 

Full report: Global Market Report: Soybeans 

ABOUT THE SUSTAINABLE COMMODITIES MARKETPLACE SERIES 

This report is the eighth in IISD’s Sustainable Commodities Marketplace Series, which presents market performance and analysis on agricultural commodities to foster transparency, knowledge, and strategic decision making for sustainable development. The first seven reports focused on bananas, cotton, cocoa, coffee, palm oil, sugar, and tea. 

ABOUT THE INTERNATIONAL INSTITUTE FOR SUSTAINABLE DEVELOPMENT 

The International Institute for Sustainable Development (IISD) is an independent think tank with the mission to accelerate solutions for a stable climate, sustainable resources, and fair economies. Our big-picture view allows us to address the root causes of some of the greatest challenges facing our planet today—ecological destruction, social exclusion, unfair laws and economic and social rules, a changing climate. With offices in Winnipeg, Geneva, Ottawa, Toronto, and Beijing, our work impacts lives in nearly 100 countries. 

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