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 …
On July 7, 2020, PT Pradiksi Gunatama held an Initial Public Offering (IPO) on the Indonesia Stock Exchange. On the day the IPO went public, the Indonesia Stock Exchange reported a 34.78 percent increase in the company’s share price. The IPO raised proceeds of IDR 103 billion (over USD 7 million). The company plans to use …
A palm oil company clearing forest in the Malaysian state of Sabah, Aspirasi Kristal Sdn Bhd, has ownership links to the Malaysian palm oil grower and trader IOI Corporation. In 2011, the State Government of Sabah granted a 5,033 hectare (ha) concession to Aspirasi Kristal Sdn Bhd. The concession is within the Bonggaya Forest Reserve, …
Fast Moving Consumer Good (FMCG) companies have increasingly developed zero-deforestation or NDPE policies. Still, deforestation continues to show up in the supply chain of various FMCGs for which palm oil and its derivatives are a material input. Weak monitoring and verification mechanisms at times allow leakage of deforestation-linked palm oil into supply chains and consequently …
Palm oil spot markets have become a backdoor that has allowed non-compliant producers to enter into the supply chains of companies with No Deforestation, No Peatland, and No Exploitation policies. The spot market’s nature allows palm products to cross many hands before reaching their final destinations, making due diligence difficult. Chain Reaction Research (CRR) analysts …
The palm oil industry has seen considerable transformation in the last few years, as suppliers that are not compliant with NDPE policies have been increasingly excluded from supply chains. However, these gains are undermined when the same suppliers enter supply chains via spot purchases. Yet, little is known about the spot market. This paper seeks …
On June 15th, the consumer goods company Unilever announced new measures to combat climate change and protect biodiversity. The measures commit Unilever to a deforestation-free palm oil supply chain by 2023 and net-zero emissions by 2039. The company plans the establishment of a EUR 1 billion (USD 1.12 billion) Climate & Nature Fund, which will …
