Just before last week’s release of Chain Reaction Research’s (CRR) report on NDPE and palm oil refiners, the large refiner Permata Hijau Group published a list of its suppliers and opened a grievance system. CRR has updated its report accordingly. As a result of this change, effective NDPE coverage by palm oil refiners increased from …
This Chain is part of a series on how COVID-19 is affecting agricultural markets and investor flows. The global biodiesel market has taken major hits from weaker demand, a sharp drop in crude oil prices, and growing palm oil oversupply. The decline in transportation demand as the novel coronavirus has forced global travel to pause …
Palm oil refiners are a strategic bottleneck in the global supply chain. Since 2014, the largest refiners have adopted No Deforestation, No Peat, No Exploitation (NDPE) policies, the strongest private instrument to cut the direct link between deforestation and palm oil. Refiners commit to NDPE policies that cover their plantations and the plantations of their …
Download the Bahasa translated version here. Malaysian palm oil company Tabung Haji (TH) Plantations has submitted an environmental impact assessment (EIA) for the development of 8,094 hectares (ha) of an oil palm plantation in Mukim Tembeling (Jerantut District, state of Pahang, Malaysia). The landowner, Deru Semangat Sdn Bhd, is 55 percent owned by Tabung Haji. …
Major agricultural commodity-producing countries are seeing environmental enforcement rollbacks amid the coronavirus pandemic. In Brazil and Southeast Asia, concerns about worker safety and limited resources have reduced environmental law enforcement, including the protection of forests and indigenous peoples. These developments increase exposure to deforestation risks for agricultural companies and their investors. In Brazil, the country’s …
Editor’s note: We hope that you are healthy and productive as we all grapple with the COVID-19 pandemic and the uncertainty of what is ahead. The CRR team is hard at work to continue bringing you independent sustainability risk analysis. In the coming weeks and months, we’ll be working to provide insightful analysis while also …
Recent pressure from investors and NGOs have facilitated downstream actors to either adopt new zero-deforestation commitments or enhance existing pledges. This year is key for major consumer-facing companies as many have targeted 2020 to completely eliminate deforestation from their supply chains. But the industry as a whole has fallen short of this goal, with some …
Download the Bahasa translated version here. Analysis by Chain Reaction Research (CRR) shows that ten palm oil companies were alone responsible for approximately 39,500 hectares (ha) of deforestation and peat development in Indonesia, Sarawak (Malaysia) and Papua New Guinea in 2019. This total amounts to roughly 44 percent of all deforestation detected within known oil …
BlackRock, the world’s largest asset manager, recently released a report on its engagement with agricultural firms and the risks and opportunities the industry faces connected to environmental and social (E&S) issues. The communication comes just weeks after the investment firm joined the Climate Action 100+ group and emphasized that climate change is now central to …
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, …
