On January 22, 2019, Frontpage Africa reported that Sime Darby put its Liberian plantation up for sale. According to the news story, Sime Darby decided on this path as the Liberian government did not meet its obligations. The decision likely relates to the stipulation in Sime Darby’s 2009 concession agreement that states the 220,000 ha …
COFCO, a major Chinese company active in agricultural markets, released a statement in late January at the World Economic Form (WEF) in support of shoring up “sustainable” practices and curbing deforestation in commodity supply chains. COFCO’s CEO, Jun Lyu, warned industry that failure to curb climate change could lead to poor crop production and limit …
Ten growers in Malaysia, Indonesia and Papua New Guinea were responsible for almost 35,000 hectares (ha) of deforestation in 2018, according to analysis by Chain Reaction Research (CRR). This total represents around 47 percent of the 74,000 ha of deforestation that can be attributed to palm oil companies in 2018 in Malaysia, Indonesia (Kalimantan, Sumatra, …
Faced with investor pressure, food service provider Aramark announced January 23, 2019 that it plans to put into effect a no-deforestation commitment by 2025. As a result, Green Century Capital Management withdrew its shareholder resolution it had filed with Aramark. The company, headquartered in Philadelphia, says it will implement a No Deforestation, No Peat, No …
AAK is a vegetable oils producer, with its headquarters in Malmö, Sweden. The company has 20 production facilities worldwide, sales offices in more than 25 countries and a total workforce of 3,500 employees. In 2017, its revenue was equivalent to USD 3.2 billion in 2017. Within the world’s palm oil supply chain, AAK is positioned …
Since the palm oil sector is capital intensive and needs long-term financing, palm oil companies depend on bank loans. By investing in banks that provide loans to the palm oil industry, investors may indirectly face deforestation-related risks. These risks are magnified when a bank’s exposure to palm oil companies with sustainability risks is relatively high …
Peru’s largest consumer goods company Alicorp is facing criticism over a recent report that the company is sourcing palm oil from deforested plantations. Research organization Convoca published a report on November 30, 2018 that Alicorp has been purchasing palm oil that is linked to deforestation. Convoca says that Alicorp has bought palm oil that originated at …
On 15 November 2018, the Roundtable for Responsible Palm Oil (RSPO) adopted a resolution that requires its members involved in primary procurement to publish their third-party supplying mill lists. The resolution was submitted by Chain Reaction Research partner Aidenvironment and supported by Sime Darby, Wilmar, Musim Mas, Orangutan Land Trust and The Zoological Society of …
Large palm oil refiners have adopted sourcing policies that require their suppliers to refrain from clearing forests, using peatland or exploiting people. A November 2017 analysis by Chain Reaction Research showed that 74 percent of Indonesian and Malaysian refining capacity is covered by such No Deforestation, No Peat, No Exploitation (NDPE) policies. This report looks …
The Roundtable on Sustainable Palm Oil (RSPO) has sanctioned Jakarta-based PT PP London Sumatra Indonesia Tbk (Lonsom), a subsidiary of Indofood Agri Resources (IndoAgri), for labour rights violations by revoking its sustainability certificate for selling palm oil and calling for audits at four of the company’s sites. This action comes a little over two years …
