Survival International Italia (on behalf of Ayoreo Totobiegosode Indigenous People) v. Pasubio (Italian company in the leather sector)

On December 13, 2022, the NGO Survival International filed a complaint with the Italian National Contact Point of the OECD (Organization for Economic Cooperation and Development) arguing that Pasubio – an Italian leather company that supplies renowned automotive firms including BMW and Land Rover – has violated the OECD Guidelines for Multinational Enterprises. Specifically, the complaint alleges that Pasubio is sourcing leather from cattle ranching firms that operate within the forests inhabited by the Ayoreo Totobiegosode in the Gran Chaco area of Paraguay. The Ayoreo Totobiegosode are the only indigenous people living in voluntary isolation in the Americas outside the Amazon rainforest. According to the applicant, the activities of the cattle farms contribute to the deforestation of the Ayoreo lands and the violation of their human rights. Although climate change is not the main issue at the centre of the case, the specific instance explicitly addresses the link between deforestation activity and the climate emergency (p 49). Deforestation affects the natural GHG emissions absorption capacity, accelerating global warming. The complaint also mentions the Glasgow Forest Pledge, under which several multinational companies have pledged to reduce their deforestation impact. The allegations are based on, among other things, two reports by the NGO Earthsight.