In February Nestlé and Unilever both published a list of all their direct and indirect palm oil suppliers and mills. These two consumer goods companies are major players in the global palm oil industry, and purchase about four percent of palm oil production globally. Most of the larger palm oil traders and refiners, such as …
Over the past two weeks, two green bonds were issued in Indonesia. The Government of Indonesia issued a USD 1.25 billion green sukuk bond – a government first – while Tropical Landscapes Finance Facility (TLFF) issued a USD 95 million sustainability bond. Both bonds target some of their proceeds towards sustainable landscapes, but these two …
Download Report Here (PDF) | Read TBLA’s response to the report, and our reply Summary An estimated 75 percent of TBLA’s landbank is contested. TBLA’s recent peat clearance violates Indonesia’s peat moratorium. As a result of non-compliance with clients’ NDPE sourcing policies, 10 percent of TBLA’s revenues are at risk. Tunas Baru Lampung (TBLA) is an …
Chain Reaction Research, a joint effort between Climate Advisers, Aidenvironment and Profundo published a financial risk assessment report entitled “Tunas Baru Lampung: Contested Land and Peat Clearing Could Drive Substantial Value Loss.” on 14 March 2018. On March 16 2018, TBLA posted its rebuttal on the company’s website. We appreciate the company’s openness for further …
Download Report Here (PDF) Lembaga Tabung Haji is a Malaysian Islamic financial institution, with over USD 16 billion in assets under management. TH Plantations (THP) is Lembaga Tabung Haji’s publicly traded palm oil arm, with 32 palm oil plantations in Malaysia and Indonesia. It has a total landbank of 102,000 ha, of which 61,104 ha …
In 2018, corporate palm oil buyers concerned about reputational and financial risks are looking for sellers whose product is covered by reliable No Deforestation, No Peat, No Exploitation (NDPE) policies. But the Government of Indonesia has proposed moving in the opposite direction, loosening requirements for a certification program known as the Indonesian Sustainable Palm Oil …
On January 24, PepsiCo announced that the company and its joint venture with Indofood Sukses Makmur, IndoFood Fritolay Makamur (IFL), had suspended purchasing palm oil from Indofood Agri Resources (IndoAgri). Pepsi stated it made this procurement decision because “PepsiCo is very concerned about the allegations that our policies and commitments on palm oil, forestry …
On January 19, the Wall Street Journal reported that ADM was considering making a hostile takeover bid for Bunge similar to Glencore’s unsolicited bid in May 2017 that led to Glencore and Bunge agreeing to a “standstill” agreement that prevents Bunge from further unsolicited bids. J.P. Morgan analyst Ann Duignan reported that this agreement “ends …
Deforestation, stop work orders and acquisition review at Asian Plantations As shown in Figure 1 (below), Felda Global Ventures’ wholly-owned subsidiary, Asian Plantations, has deforested at least 270 hectares (ha) of potential High Carbon Stock (HCS) forest since September 2017 on its Grand Performance concession. Neither Felda Global Ventures or Asian Plantations have verified Grand …
On November 9, the U.S. Department of Commerce announced final countervailing duties on imported biodiesel from Indonesia and Argentina. Countervailing duties (CVD) are an import duty imposed by countries when another country exports products that allegedly are subsidized by the exporting country. This CVD decision impacts two Indonesian palm oil biodiesel exporters that import into …
