Indonesia’s state-owned energy company Pertamina has ended an agreement with Italian Eni to build a refinery to turn palm oil into biodiesel. The end of the partnership, which was agreed last year, is a consequence of Eni’s stricter sustainability standards. The standards were stronger than Pertamina was willing to accept. Pertamina and Eni, under a joint venture, …
The trend to integrate sustainability factors into financial regulatory frameworks is creating compliance, legal and reputational risks for local banks and investors financing forest-risk commodities in tropical countries. International banks and investors exposed to these supply chains may also be affected. Based on public sources and interviews, this report analyses the integration of sustainability in …
This month India began boycotting Malaysian palm oil, a move that could increase the country’s reliance on volumes from Indonesia. This development could lead to greater leakage risks, as India may purchase more volumes from non-NDPE sellers in Indonesia. Deforestation rates for oil palm are higher in Indonesia than in Malaysia. With a majority of …
Agriculture giant Bunge recently announced that it closed its first sustainability-linked revolving credit facility, worth USD 1.75 billion. The new facility agreement links Bunge’s interest rate to its performance on five sustainability targets. These involve cutting greenhouse gas emissions with improved industrial efficiency; increased traceability on its agricultural commodity supply chains; and increased sustainable practices …
By revenue, Walmart is the largest company in the world, employing about 2.2 million people and serving over 265 million customers a week. Private-label products sold by Walmart contain commodities that contribute to deforestation. For the forest-risk commodities – palm oil, pulp and paper, soy, and beef – Walmart has set zero net deforestation goals for 2020. Although …
Oil palm plantation development and its effects on land clearing has likely impacted areas of critical value to local communities. While palm growers have made progress in quantifying and compensating loss for areas with environmental value, they have made less headway regarding compensation for clearing of land with social and cultural values. If palm growers …
The expansion of the palm oil industry in the last ten years was partially in response to the anticipated demand for biofuels worldwide. The expected EU biodiesel boom did not materialize, resulting in a systemic oversupply of palm oil in Southeast Asia. A number of recent policy initiatives may bring about significant shifts in the …
Procter & Gamble (P&G) is a NYSE-listed multinational consumer goods company headquartered in Cincinnati, Ohio. P&G provides branded products and services in the home and personal care sectors in more than 180 countries. The company has a No Deforestation, No Peat, No Exploitation (NDPE) policy that covers all third-party suppliers, and it has committed to …
It has now been 25 years since the start of strong growth in the Southeast Asian palm oil industry. Independent smallholders are crucial in the supply chain of large palm oil companies as they generate up to 40 percent of the global Fresh Fruit Bunch (FFB) supply. However, independent smallholders are facing declining yields per …
France’s constitutional court upheld the country’s efforts to restrict the use of palm oil in biofuels. On October 11, 2019, oil major Total lost its fight in French court to utilize tax breaks for palm oil use for biofuels. The court’s ruling is a major blow to Total, which will lose USD 88 million at …
