Biodiversity loss is one of the biggest global sustainability challenges alongside climate change. Halting biodiversity loss requires companies to minimise their negative impact on biodiversity. The joint project by Chiquita and S Group aims to improve the living conditions of the local species, to collaborate with the local landowners and to gain experience from supply chain cooperation related to nature. Measured in kilograms, bananas are the most important item out of all vegetable products affecting the biodiversity footprint of S Group.

The strip of forest to be planted around banana plantations will be integrated into a network of protected rainforests extending from Mexico to Panama. Currently, this is the missing piece in the ecological corridor surrounding the banana plantations. Although the area to be planted is small in size, it is highly significant for the integrated network of natural rainforests. Over the years, natural forests have become isolated in the region because of cutting down trees for agriculture, construction use and firewood.

“Reforestation supports the biodiversity of the area and improves the living conditions of animal species such as the spider monkey, the tapir, which is a mammal typical to the region, and the critically endangered great green macaw. One of the tree species to be planted is the Tonka tree, which is a nesting site and a food source for the great green macaw in Costa Rica. During the dry season, it is among the few species that bear fruit, and it helps to ensure adequate nutrition for several organisms,” says Ana Laura Masis Aguilar, a biologist who is in charge of the local nature reserve.

S Group sells 45 million kilograms of bananas a year – farming Finland’s favourite fruit affects tropical species

S Group is investigating its impact on biodiversity with researchers. According to an interim report, a significant part of the biodiversity footprint of the retailing cooperative is due to the food and drink it sells. Measured in kilograms, bananas are the most important item out of all vegetable products affecting the biodiversity footprint of S Group. This is because of its large sales volumes and, ultimately, farming the banana in the equatorial area rich in species.

Almost everyone in Finland buys bananas at least weekly. Among fruits and vegetables, bananas are the second best-selling product after potatoes. S Group sells around 45 million kilograms of bananas a year, and most of them come from Costa Rica and Panama.

“The products we buy have an impact on the local nature. Therefore, we want to do our share in reducing the negative impacts on nature. This project is a common learning journey for all the parties involved. Strengthening collaboration in our supply chain will be increasingly important,” says Nina Elomaa, Chief Sustainability Officer at S Group.

Upcoming EU legislation will also require companies to take more responsibility for the human rights and environmental impacts of their own supply chain.

The local landowners have a crucial role in the success of the project

One important goal of the project is to extend collaboration with the local landowners and stakeholders. They have a crucial role in the success of the project, as the strips of forest will be rented from local landowners.

“This project will define a new methodology to enhance biodiversity connectivity. It is a collaborative project with our customer S Group and the Nogal community, the majority of land being contributed to the corridor is owned by community members. We expect to learn a lot, to share this with our broader stakeholders and to help inform our biodiversity connectivity strategy more broadly,” says Peter Stedman, sustainability director at Chiquita.

The joint project by S Group and Chiquita runs for five years. The project will involve planting tree species typical to the forests in Costa Rica near banana plantations, creating a habitat for the diverse rainforest plant population. The first young trees were planted at the end of 2023, and reforestation will continue in 2024.

The project will be certified by a third party, Preferred by Nature, which has also carried out a baseline survey for the project. The purpose of the organisation is to support better land use and sustainable business models. Preferred by Nature has collaborated with the European Commission in matters such as deforestation.

All bananas sold by S Group come from plantations audited by an independent third party to ensure good working conditions and social responsibility.

Reforestation supports the biodiversity of the area and improves the living conditions of animal species such as the tapir, which is a mammal typical to the region.

The nature project in Costa Rica

• Over the last 25 years the meso American biological corridor has connected small private and large public reserves from Mexico to Panama. Twenty years ago, 600 hectares of forest were protected around Chiquita’s banana plantations by establishing the Nogal reserve. The Nogal reserve was established by Chiquita with its partners and it is a formally recognized part of the local and national parts of the meso American biological corridor. The Nogal reserve is located in the banana plantation region in the north of the country.

• The ecological corridor to be planted in the joint project by S Group and Chiquita will be integrated into the network of protected rainforests extending from Mexico to Panama.

• One of the tree species to be planted in the area is Tonka Tree Dipteryx panamensis. It is known to be a nesting site and a food source for the endangered great green macaw.

• The project is led by biologist Ana Laura Masis Aguilar, who is in charge of the Nogal reserve and works for Chiquita.

• The project will be certified by a third party, Preferred by Nature.

For more information: Nina Elomaa, CSO, Chief Sustainability Officer, S Group tel. +358 10 768 0803