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 …
Ten growers in Malaysia, Indonesia and Papua New Guinea have been responsible for almost 16,000 ha of deforestation in the first nine months of 2018, according to an analysis by Chain Reaction Research (CRR) based on new data using satellite images from Aidenvironment. Most of the companies on the list of the top deforesters have …
Foresthints.news reports that, on August 25-26, the Indonesian Environment and Forestry Ministry sealed four of the five palm oil concessions owned by GAMA Plantation in West Kalimantan’s Kubu Raya regency — PT SUM, PT PLD, PT AAN, and PT RJP. Foresthints says that law enforcement acted due to continuing peat fires on these concessions. This sealing …
Approximately 18 percent of global greenhouse gas emissions comes from deforestation. Palm oil and soybeans are two of the four main crops driving deforestation, next to other environmental and social problems. Investor awareness regarding the material risks emerging in the palm oil sector has grown, but soy-related risks are not yet widely recognised. This paper …
On August 21, 2018, Malaysia-based Sime Darby Plantation Berhad (SDP) signed a Memorandum of Understanding (MOU) with China’s COFCO Group Co. Ltd. to cooperate on palm oil projects. Both sides plan to work together to conduct research on sustainable palm oil, and SDP is seeking to further penetrate the growing Chinese market. SDP and COFCO …
A letter sent from investors to the Roundtable on Sustainable Palm Oil (RSPO), dated August 1, 2018, highlights growing demand in the investment and financial communities for the palm oil sector to alter its habits and strengthen its sustainability practices. The letter came from 90 institutional investors, which manage some USD 6.7 trillion of assets, …
