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Article

18 May 2022

Author:
Earthsight

Paraguay: Based on further investigation, Earthsight states that BMW’s claims in response sent to the BHRRC are erroneous; incl. company comments

"BMW fails to substantiate allegations against Earthsight’s research", 18 May 2022

...Last November BMW publicly stated that “Earthsight's accusations are not accurate." This was in reference to Earthsight’s 2020 report Grand Theft Chaco and its 2021 sequel Grand Theft Chaco II, both of which exposed the persistent links between the illegal destruction of a protected indigenous land in Paraguay and leather used by Europe’s automotive industry...

In order to verify BMW’s claims, over the past months Earthsight held meetings with Satelligence and Sourcemap and made several attempts to obtain the necessary evidence from BMW itself...

In January Satelligence...confirmed to Earthsight it had provided farm-level satellite image analyses to BMW. However, it was clear from the meeting that Satelligence had no role in identifying the source farms in BMW’s Paraguayan leather supply chains...

In February Earthsight held a meeting with Sourcemap, a consultancy firm that provides end-to-end supply chain mapping software to clients. Again, Sourcemap confirmed it had provided BMW with its supply chain mapping software. Sourcemap further said BMW had performed independent verification of its supply chain mapping. However, the consultancy firm could not provide any assurances the mapping had been done appropriately...

Earthsight then contacted BMW in late February to give the company one last chance to share its supply chain mapping evidence with us. 

...BMW stated it had “taken extensive measures to verify [Earthsight’s] allegations, internally and externally. The results are clear from our point of view. In addition to these clarifications, we see no need to provide further explanations.” 

The company highlighted its work with “two partners who have re-examined our previous results based on an external analysis and have come to the same conclusion.” It’s not clear from this if BMW means Satelligence and Sourcemap. 

...BMW again denied links to Paraguayan exporter Cencoprod. But Earthsight’s evidence points to BMW’s links to two other exporters, Lecom and Frigorífico Concepción, that use hides connected to illegal deforestation at Ayoreo lands. The automaker did not mention these firms in its statement. 

BMW also emphasised that from 2023 onwards the company “will stop using leather from Paraguay for new models” (see BMW’s full statement here)...

Without seeing the necessary evidence to the contrary, Earthsight stands by its research and original findings, which were the result of extensive field work, detailed data analyses, undercover meetings, and exchanges with the companies involved in these supply chains...

...It’s clear the leather industry – including supply chains reaching some of the world’s largest car manufacturers – lacks transparency...

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