Despite the increase in palm oil refining capacity covered by No Deforestation, No Peat, No Exploitation (NDPE) policies, eight of 25 largest refiners are still operating in the leakage market. This report analyzes the financiers and investors in these companies, updating a study published by Chain Reaction Research (CRR) in 2018. The financial institutions are …
Indonesia’s government responded to the country’s loss of forests and peatlands and the 2015 fire and haze crisis with a forest-clearing ban, a moratorium on issuing of licenses for new oil palm plantations, and tightened peatland regulation. This report analyzes gaps in the moratoria amid looser environmental legislation and recently rising palm oil prices, and …
The palm oil value chain contains a number of stakeholder groups, such as smallholders, large plantations, refineries, the fast-moving consumer good (FMCG) industry, the oleochemical and pharmaceutical industry, and the retail and food service sector. In every step of the chain, palm oil is further processed or is embedded in products which contain other ingredients, …
Malaysia is the world’s second-largest palm oil producer, after Indonesia. Peninsular Malaysia accounts for more than 12 percent of world production and produces approximately half of Malaysia’s palm oil. It also hosts a large number of forests rich in biodiversity and large carbon stock. How are Peninsular Malaysia’s forests protected from more deforestation for oil …
This report discusses the role of Japan in the worldwide palm oil and timber market, looking particularly at the country’s position as a buyer and financier of unsustainable palm oil and plywood. Download the PDF here: Japan: Major Financier and Buyer of Leakage Palm Oil and Plywood Download the Indonesian version here: Japan: Major Financier …
The Cerrado biome, a vast, biodiverse tropical savannah in Brazil, is under threat from commodity-driven deforestation. Soy expansion and cattle ranching are direct drivers of forest loss in the Cerrado. This report presents new data on specific actors linked to Cerrado deforestation in 2020, including the quantified risk exposure of the largest soy traders, meatpackers, …
China is a key market for palm oil (PO), palm kernel oil (PKO) and derivatives from Indonesia and Malaysia. This paper maps the role of the Chinese market and Chinese actors along the palm oil supply chain, from upstream production to midstream trading to downstream consumption, as well as the position of Chinese financial institutions …
In 2017, the Task Force for Climate-Related Financial Disclosure (TCFD) released its recommendations for climate-related disclosures in financial filings. The TCFD has since become the de facto global standard for the financial sector to report on climate change risks. This paper presents a framework for assessing deforestation-related risks in agricultural commodity supply chains that is …
The beef and soy sectors have been two of the major drivers of deforestation in the Brazilian Amazon and Cerrado biomes in recent years. Financial institutions with exposure to these sectors may be inadvertently contributing to climate change and biodiversity loss. As global stakeholders react to these threats, financial institutions may become increasingly more exposed …
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 …
