This report discusses the role of South Korean companies in the worldwide palm oil market and the country’s position as an owner of oil palm concessions, a buyer of palm oil products, and a financier of palm oil operations. The analysis highlights the country’s role in the palm oil “leakage market,” which trades unsustainable palm …
Companies and their financiers are exposed to a variety of financial risks when linked to deforestation, ranging from reputational damage to reduced market access. Of the companies that disclosed information on involvement with forest-risk commodities in CDP’s 2018 survey, two-thirds conducted risk assessments of forest-related issues and 92 percent of risk assessments identified substantive business …
In an unprecedented move, BlackRock voted in favor of a shareholder resolution requesting an assessment report to identify further opportunities to combat deforestation and degradation of intact forests in Proctor & Gamble (P&G) supply chains. BlackRock, State Street, and Vanguard, the “Big Three” asset managers, have a combined USD 62 billion in P&G stakes (as …
On October 5, 2020, the Indonesian House of Representatives and executive branch passed a controversial omnibus law. Intended to foster economic investment, the law has generated protests within Indonesia and international condemnation. Concern has focused on the weakening of environmental and labor standards. The omnibus law, which amends 79 existing laws and removes thousands of …
On September 30, 2020, the U.S. Customs and Border Protection (CBP) issued a Withhold Release Order (WRO) on palm oil products produced by Malaysian Felda Global Ventures (FGV) over concerns of alleged forced labor issues. FGV is a Bursa Malaysia-listed palm oil company with plantations, milling, and refining facilities. The WRO also covers its joint …
The head of government in the Malaysian state of Sarawak, Abang Johari Openg, told delegates at a conference in Thailand on September 26 that the Sarawak government will acquire all oil palm plantations belonging to Tabung Haji and its subsidiary TH Plantations. Negotiations between the state government and TH Plantations are in the final stages, …
This Chain was updated on September 28 based on the latest from United Malacca, which had planned on proceeding with the development of a 60,000-hectare industrial tree plantation in Sulawesi despite market risks. United Malacca has now issued a stop work order on the concession, PT Wana Rindang Lestari. In an announcement made on the …
In early September 2020, Mondelēz International announced enhanced traceability of its palm oil sourcing policy, including independent verification. This action followed Unilever’s June 2020 announcement of its extra measures to help transform the palm oil industry. These developments have occurred against the background of the Consumer Goods Forum (CGF) targeting of zero-deforestation in 2020, Fast-Moving …
The United Kingdom and Germany have recently announced new bills aimed at achieving deforestation-free commodity supply chains. The bills also focus on decarbonization of the transportation and energy sectors, and, if enacted, they would help countries meet climate change and greenhouse gas emission reduction targets. At the same time, however, Indonesia plans to implement a …
For the first six months of 2020, Chain Reaction Research (CRR) has detected a total of 19,894 hectares (ha) of deforestation within known oil palm concessions in Indonesia, Malaysia, and Papua New Guinea. Based on satellite imagery from CRR partner Aidenvironment, more than half of the total detected deforestation (57 percent) is attributed to ten …
