Jhonlin Group, one of the largest deforesters for oil palm plantation development in Indonesia in the last few years, has reportedly completed the construction of a new biodiesel plant, PT Jhonlin Agro Raya (PT JAR), in Tanah Bambu district, South Kalimantan. The plant, which will mainly serve Indonesia’s domestic biofuel sector, can process 60 metric …
Analysis by Chain Reaction Research (CRR) shows that 10 palm oil companies were responsible for approximately 5,000 hectares (ha) of forest clearing during the first six months of 2021 in Indonesia, Malaysia, and Papua New Guinea. The figure is approximately 43 percent of the total 11,500 ha of deforestation detected within known oil palm concessions …
In the fourth quarter of 2020, the U.S. Customs and Border Protection (CBP), a federal law enforcement agency, issued Withhold Release Orders (WRO) on two Malaysian palm oil companies – Sime Darby Plantations and Felda Global Ventures (FGV). These actions banned palm oil from the two companies from entering the United States. Since then, both …
A new report by WWF sheds light on the low uptake of Roundtable on Sustainable Palm Oil (RSPO) certified palm oil in Asian markets, predominantly in the east, south, and southeast regions. The report identifies that the ongoing discussion on certified palm oil is still driven by Western markets. Only 3-4 percent of the total …
Indonesia is among the world’s largest mining countries. It is also a country of conglomerate companies with interests in various businesses, including deforestation-related sectors such as oil palm, industrial trees and mining. This report aims to shed a light on overlapping company groups in the Indonesian palm oil and mining sectors. Some large palm oil …
Despite the increase in palm oil refining capacity covered by No Deforestation, No Peat, No Exploitation (NDPE) policies, eight of 25 largest refiners are still operating in the leakage market. This report analyzes the financiers and investors in these companies, updating a study published by Chain Reaction Research (CRR) in 2018. The financial institutions are …
Indonesia’s government responded to the country’s loss of forests and peatlands and the 2015 fire and haze crisis with a forest-clearing ban, a moratorium on issuing of licenses for new oil palm plantations, and tightened peatland regulation. This report analyzes gaps in the moratoria amid looser environmental legislation and recently rising palm oil prices, and …
The palm oil value chain contains a number of stakeholder groups, such as smallholders, large plantations, refineries, the fast-moving consumer good (FMCG) industry, the oleochemical and pharmaceutical industry, and the retail and food service sector. In every step of the chain, palm oil is further processed or is embedded in products which contain other ingredients, …
The oil palm and the industrial tree sectors are the two largest plantation sectors in Indonesia and Malaysia. In both countries, it is common for companies to operate plantations in both sectors. In the last few years, palm oil buyers with No Deforestation, No Peat, No Exploitation (NDPE) policies have increasingly removed deforestation-linked palm oil …
Chain Reaction Research (CRR) and Forests & Finance held a webinar on July 22nd, 2021 looking into their recent research of who provides financing to companies in palm oil supply chains tied to deforestation. The session covered CRR’s report on the share of palm oil refining covered by NDPE policies. Forests & Finance shared an …
Japan is a large buyer of palm oil and timber products from Indonesia and Malaysia. While the country has promoted sustainability ahead of the 2021 Tokyo Olympics, sourcing policies are still inadequate. Against this backdrop, Japan’s large demand for palm oil and plywood is linked to deforestation and leakage markets for both commodities. Japan is …
On April 15th, the Zoological Society of London SPOTT (ZSL SPOTT), Chain Reaction Research (CRR), and Orbitas hosted a webinar to discuss financiers should analyze a broad range of risks amongst palm oil companies in Indonesia as well as the whole supply chain to inform their ESG investment and lending strategies. Combining company transparency and …
Chain Reaction Research (CRR) strives to provide objective insight and unbiased analysis on market trends and company and investor risk for its readers. CRR determines content based on what is considered to be of broad interest to readers and whether it can provide candid, high-level debate.
Chain Reaction Research conducts free sustainability risk analysis for financial analysts, credit analysts, commercial bankers, institutional investors, corporations, and other stakeholders. Our special focus is demonstrating that deforestation is material financial risk. We focus on tropical deforestation-related commodities including palm oil, soy, cattle, coffee, cacao, timber pulp and paper, and other products. We are funded by the David and Lucile Packard Foundation, the International Climate and Forest Initiative (NICFI) scheme managed by the Norwegian Agency for Development Cooperation (Norad), and the Moore Charitable Foundation. Chain Reaction Research statements and materials do not necessarily reflect the standpoints of the Packard Foundation, the Moore Foundation or Norad.
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