Target Corp: Establish a Due Diligence Protocol to Monitor Illegal Deforestation in its Avocado Supply Chains

December 23, 2024 As You Sow

WHEREAS: Public reporting suggests that Target may source avocados from illegally deforested land,[1] harming ecosystem function and local communities and posing reputational and regulatory risks to Target.

Mexico accounts for nearly 90 percent of avocado shipments in the United States.[2] It is estimated that, for the past decade, more than ten football fields a day of Mexican forests have been cleared for avocado orchards.[3] By 2050, the land used for avocado production in certain regions is predicted to increase by over 70 percent.[4]

Over the past two decades, virtually all avocado-related deforestation in the states of Michoacán and Jalisco – the largest sources of avocados for the U.S. market – has violated Mexican federal law, which prohibits conversion of forested areas to agricultural production without government authorization. The additional crime of intentionally setting forest fires frequently facilitates this deforestation.[5]

This burning and deforestation releases greenhouse gases, reduces carbon storage, increases floods and landslides, and undercuts biodiversity and the replenishment of aquifers.[6] Some of this deforestation is occurring within the Monarch Butterfly Biosphere Reserve, further imperiling an endangered species.[7]

Avocado production is also water intensive. Mexico’s main avocado-growing regions are currently in a severe drought,[8] and much of the water used for avocado plantations is obtained illegally. The combination of illegally diverting streams, digging wells for irrigation, and replacing native forests with plantations is depleting water supplies for communities and making forests and farms more vulnerable to fires and disease.[9]

Recently, the environmental damage from avocado-related deforestation prompted lawsuits against major avocado importers over misleading sustainability claims.[10] Additionally, Mexican avocado imports have been suspended due to security concerns related to criminal activity in avocado production three times since 2020.[11]

Target expects its suppliers to “comply with all applicable laws, regulations and Target’s Standards.”[12] However, Mexican government records indicate that orchards containing illegally deforested land are supplying avocados to Target,[13] calling into question the sufficiency of Target’s due diligence protocols for its avocado suppliers.

Importantly, a government-sanctioned tool to help retailers and suppliers identify orchards on illegally deforested land is available and recognized by a major avocado exporting company.[14] Adequate due diligence of its supply chain standards will help Target address the likelihood of supply chain disruption and lawsuits, prevent greenwashing accusations, and avoid reputational risk, while protecting human rights and critical habitat.

BE IT RESOLVED: Shareholders request that Target assess and report on the effectiveness of its due diligence policies to ensure supplier compliance with local laws and Target’s Standards, such as illegal deforestation from avocado supply chains.

SUPPORTING STATEMENT: Proponents recommend, at management discretion, that the report identify actions Target can take to identify, avoid, and/or reduce the future sale of avocados from illegally deforested lands.

[1] https://cri.org/reports/unholy-guacamole/

[2] https://pubmed.ncbi.nlm.nih.gov/33126191/

[3] https://news.mongabay.com/2024/04/mexicos-avocado-industry-harms-monarch-butterflies-but-will-u-s-officials-act-commentary/

[4] https://www.researchgate.net/publication/358551509

[5] https://cri.org/reports/unholy-guacamole/

[6] https://cri.org/reports/unholy-guacamole/

[7] https://www.mdpi.com/2673-7159/1/4/23

[8] https://smn.conagua.gob.mx/es/climatologia/monitor-de-sequia/monitor-de-sequia-en-mexico

[9] https://research.fs.usda.gov/pnw/forestplanthealth

[10] https://www.reuters.com/investigations/avocado-goldrush-links-us-companies-with-mexicos-deforestation-disaster-2024-08-06/

[11] https://www.latimes.com/california/story/2024-06-18/usda-halts-avocado-inspections-in-mexico-citing-security-concerns

[12] https://corporate.target.com/sustainability-governance/responsible-supply-chains/suppliers/standards-of-vendor-engagement