On November 24, 2022, the palm oil company Bumitama Agri Ltd issued a statement clarifying its commitment to its No Deforestation, No Peat, No Exploitation (NDPE)
The owner of Agropalma SA, the largest exporter of palm oil in Brazil, is considering the sale of the company. Agropalma is a wholly owned subsidiary of the Alfa Group,
Analysis conducted by CRR partner AidEnvironment shows that Indonesia remains the deforestation hotspot in the Southeast Asia, based on concession data for the first six
Cargill and Bunge, the world’s two largest traders of Brazilian soy, have been recently linked to a contested farm in Brazil, connecting the companies to human rights
A subsidiary of Jhonlin Group, PT Jhonlin Agro Raya (JAR), is currently launching an Initial Public Offering (IPO) through the Indonesia Stock Exchange. According to the
In April 2022, the government of Indonesia introduced a new regulation to ban the export of palm oil. The regulation (Minister of Trade Regulation Number 22/2022)
BrasilAgro, a Brazilian rural real estate firm and soy producer, has plans to convert at least 10,000 hectares (ha) of Cerrado native vegetation for livestock and grain
Investors are continuing to urge governments and companies to take actions to conserve forests and curb commodity-driven deforestation. A group of NGOs and activist
Agropalma SA, the largest exporter of palm oil in Brazil, is facing legal and reputational risks from being ordered to pay a fine due to poor working conditions on two
Deforestation in Indonesia, Malaysia, and Papua New Guinea attributed to the development of oil palm plantations has fallen to its lowest level since 2017. In 2021,
In the past month, there have been two significant developments in Indonesia’s palm oil sector: 1) the increased allocation for the country’s biodiesel program; and
In the aftermath of the COP26 summit in Glasgow in November, energy markets will become even further focused on substitutes for fossil fuels. There will be growing
The recently released PRODES data for 2021 shows deforestation of 13,235 km2 (1,323,500 hectares) in the Legal Amazon, the highest number since 2008 and an increase of
Just two weeks after a watershed announcement by more than 100 countries at COP26 on eliminating deforestation, the EU released a draft law on November 17 that would
Indonesia’s multi-businesses company group, Astra International, is reportedly expanding its gold mine in North Sumatra. This mine is operated by Astra
Commitments coming out of COP26 could represent a structural shift in efforts to conserve forests and tackle commodity-driven deforestation. The announcement that more
An investigation by the Bureau of Investigative Journalism, Greenpeace Unearthed, ITV News, and the Daily Mirror has found links between deforestation in Brazil’s
Jhonlin Group, one of the largest deforesters for oil palm plantation development in Indonesia in the last few years, has reportedly completed the construction of a new
Analysis by Chain Reaction Research (CRR) shows that 10 palm oil companies were responsible for approximately 5,000 hectares (ha) of forest clearing during the first six
In the fourth quarter of 2020, the U.S. Customs and Border Protection (CBP), a federal law enforcement agency, issued Withhold Release Orders (WRO) on two Malaysian palm
A new report by WWF sheds light on the low uptake of Roundtable on Sustainable Palm Oil (RSPO) certified palm oil in Asian markets, predominantly in the east, south, and
Active fires were detected on the Fazenda Perdizes farm on August 24, 2021 in Porto dos Gaúchos, Mato Grosso. The property is owned and operated by SLC Agrícola, the
A new report by Chain Reaction Research (CRR) member Aidenvironment highlights 133,000 hectares (ha) of deforestation since 2016 committed by 10 companies in the
Japanese bank Mitsubishi UFJ Financial Group (MUFG) is the target of the first ever climate change investor resolution that takes issue with high-risk commodities that
In a landmark decision, on May 26, 2021, a Dutch civil court ordered Shell to cut its CO2 emissions by net 45 percent in 2030 compared to 2019 levels. The decision
Japanese trading house Sumitomo Corporation is seeing increasing pressure from NGOs and investors over its climate policies. In particular, the company is under
Beef and soy industries in the Southern Amazon region of Brazil are at risk of almost USD 200 billion of productivity losses due to Amazon deforestation, according to a
There has been a string of recent shareholder votes in favor of companies taking action to adopt or strengthen deforestation commitments. This trend is likely to
A Malaysian conglomerate, Maxim Global, has lost control of its 80,000 hectares (ha) of forest in Papua. The forest forms part of the controversial Tanah Merah project,
Plans by the Selangor State Agricultural Development Corporation (Perbadanan Kemajuan Pertanian Selangor/PKPS) to clear a peat swamp forest in Sabak Bernam District in
A new Greenpeace investigation finds that Brazil’s leading meat processor JBS and its top competitors Marfrig and Minerva purchased cattle from ranchers linked to the
A new lawsuit has been filed against the Casino Group, a major French supermarket chain with Latin American subsidiaries, claiming that the company’s supply chain
Since 2013, Chain Reaction Research (CRR) has provided sustainability risk analysis for financial analysts, credit analysts, commercial bankers, institutional investors,
A new report by CRR member Aidenvironment puts deforestation for industrial trees in Indonesia in the spotlight and also highlights an issue of increasing concern in the
A new report by the Indonesian Consortium for Agrarian Reform (Konsorsium Pembaruan Agraria/KPA) revealed that the COVID-19 pandemic has not slowed the growing number of
The High Carbon Stock Approach (HCSA) has issued a new statement clarifying its procedures for how HCSA assessments should be conducted and how companies can claim to
Pada tahun 2020, Chain Reaction Research menemukan deforestasi di sejumlah area konsesi kelapa sawit di Indonesia, Malaysia, dan Papua Nugini dengan total sekitar 38.000
Chain Reaction Research (CRR) has detected approximately 38,000 hectares (ha) of deforestation on oil palm oil concessions in Indonesia, Malaysia, and Papua New Guinea
A new report by Forest Peoples Programme (FPP) sheds light on the ownership overlap between three Indonesian companies, First Resources, FAP Agri (FAP), and Ciliandry
Brazilian commodity trader Grupo Amaggi recently launched a green bond to expand its presence in the country’s soy market. The company’s USD 750 million green bond
So far in 2021, there appears to be capital market movement from various players in the “big four” forest-risk commodity sectors. Major Palm Oil Company
International corporations and investors have called on major soy traders to agree to a cut-off date for sourcing soy in the Cerrado biome. Signatories to the Cerrado
In December 2020, Indonesia’s Minister of Energy and Resources, Arifin Tasrif, announced at a parliamentary hearing that the country’s target for biofuel production
After banning FGV’s palm oil products from entering the United States over alleged forced labor issues, the U.S. Customs and Border Protection (CBP) agency once again
In a major step forward, eight French grocery store chains late last year signed an agreement to eliminate soy grown on deforested land from their supply chains through
A technical report by Brazil’s land reform agency INCRA has deemed TIAA’s land titles in Brazil to be legally null and void. This conclusion is discussed in a new
A recent article in Mongabay highlighted deforestation by Capitol Group in Indonesia and the lack of transparency and consistency in how companies with No Deforestation,
A new report by Forest Peoples Programme (FPP) sheds light on the ownership overlap between three Indonesian companies, First Resources, FAP Agri (FAP), and Ciliandry
Starting in January, Bremnes Seashore, a major Norwegian salmon producer, will stop purchasing soy from Brazil, posing a market access risk for soy traders. The company,
An investigation by the Bureau of Investigative Journalism (TBIJ) has shown that soy used to feed livestock in the United Kingdom originates from industrial farms in the
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 Rainforest Action Network (RAN) has sent letters to the heads of major financial institutions that may be involved in a USD 2 billion syndicated loan for Indofood
In an unprecedented move, BlackRock voted in favor of a shareholder resolution requesting an assessment report to identify further opportunities to combat deforestation
Widespread fires in Brazil have been the center of media attention for yet again this year. Unlike the Amazon and Pantanal biomes, the Cerrado has seen 9 percent fewer
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
As fire alerts increased sharply in Brazil this summer, investors in key Brazilian meatpackers are seeing their risks grow. Even though four-fifths of Brazilian beef is
Two large wildfires are currently raging at Fazenda Parceiro, an SLC Agricola-controlled farm in the municipality of Formosa do Rio Preto in the Brazilian state of
In the wake of a particularly destructive 2019 fire season, year-to-date fire alerts for 2020 have already surpassed those of last year by 14 percent in the Amazon and
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
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
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
The continued increases in Chinese imports of soy and beef from Brazil have contributed to high deforestation rates in both the Amazon and the Cerrado. In recent years,
Brazilian soy producer SLC Agrícola said that it will stop deforesting in the Cerrado in 2020 and move to increasing productivity on already cleared land. However, its
In early September 2020, Mondelēz International announced enhanced traceability of its palm oil sourcing policy, including independent verification. This action
The United Kingdom and Germany have recently announced new bills aimed at achieving deforestation-free commodity supply chains. The bills also focus on decarbonization
As investors seek to increase the sustainability and resilience of portfolios and financial institutions expand the selection of sustainable funds globally (3,432 as of
The Brazilian government has sent mixed signals regarding the urgency to tackle deforestation in the country. As pressure from international investors has stepped up
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
Brazilian soy exports have risen steeply amid the COVID-19 pandemic as a result of attractive exchange rates, agribusiness expansion, US-China tensions, and efforts to
Investors have recently stepped up their pressure on meatpacking companies operating in the Amazon over deforestation, meeting with government officials, warning of
In a landmark 2019 report, the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services studied changes in biodiversity over five decades and
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
BlackRock Investment Stewardship released a report on sustainability this week, providing an overview of the asset manager’s voting practices and engagement in 2020
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
A number of companies, including high-profile traders, have recently announced progress in efforts to reduce deforestation in the Cerrado soy supply chain. Chinese COFCO
Norwegian Grieg Seafood will not allow any funds from its Green Bond to be used to purchase feed supply from Cargill Aqua Nutrition, which is wholly owned by Cargill
A historic 2019 fire season in Brazil came as a surprise for many and garnered the attention of the entire world. Between July and October of last year, 981,282 fire
On June 15th, the consumer goods company Unilever announced new measures to combat climate change and protect biodiversity. The measures commit Unilever to a
In May 2020, the Finnish consumer good manufacturer Neste Oyj (known as Neste) updated its traceability dashboard. The dashboard provides data on both Neste’s palm
Brazilian soy producer SLC Agrícola continues to move forward with clearing land for cultivation despite increased attention on its operations in the Cerrado. Recent
This Chain is part of a series on how the COVID-19 crisis is affecting agricultural markets and investor flows. Amid widespread outbreaks in crowded meat processing
Marfrig, one of Brazil’s top meatpackers, has seen major changes recently in its shareholder base. Brazilian development bank, the National Bank for Economic and
This Chain is part of a series on how the COVID-19 crisis is affecting agricultural markets and investor flows. The global food chain continues to see major disruptions
This Chain is part of a series on how COVID-19 is affecting agricultural markets and investor flows. Many indigenous groups are now facing threats on multiple fronts: a
BrasilAgro, a publicly-traded farmland investor, has expanded its farmland holdings by 33,500 hectares (ha) in recent months. Native vegetation covers 11,915 ha of this
Mizuho has adopted stricter forest policy financing standards, paving the way for stronger ESG actions in the Japanese banking sector. Mizuho is now the standard by
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
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,
This Chain is the first in a series on how the COVID-19 crisis is affecting agricultural markets and investor flows. The COVID-19 pandemic has demonstrated the
SLC Agricola, the largest listed soybean producer in Brazil, cleared a total of 5,200 hectares (ha) of native vegetation in the first quarter of 2020. The deforestation
Download the Bahasa translated version here. Malaysian palm oil company Tabung Haji (TH) Plantations has submitted an environmental impact assessment (EIA) for the
Major agricultural commodity-producing countries are seeing environmental enforcement rollbacks amid the coronavirus pandemic. In Brazil and Southeast Asia, concerns
China’s reliance on imported soy and beef could continue to rise as the country is facing food shortages and worries persist that the coronavirus pandemic may cause
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
Prima Foods SA, a meatpacker based in Brazil, is planning to launch an initial public offering (IPO). Prima Foods’ share offering is expected to be BRL 1 billion (USD
Recent pressure from investors and NGOs have facilitated downstream actors to either adopt new zero-deforestation commitments or enhance existing pledges. This year is
Carrefour is expanding its operations in Brazil. Last week, Carrefour Brasil said that it is purchasing 30 retail stores from Makro Atacadista SA for almost BRL 2
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
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
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
Brazilian meatpacker JBS has signed a Memorandum of Understanding (MoU) with Chinese company WH Group to boost its sales of fresh meat in China, where consumption is
This month India began boycotting Malaysian palm oil, a move that could increase the country’s reliance on volumes from Indonesia. This development could lead to
Agriculture giant Bunge recently announced that it closed its first sustainability-linked revolving credit facility, worth USD 1.75 billion. The new facility agreement
A group of lawmakers in the U.S. House of Representatives last month sent letters to major U.S.-based financial institutions calling on them to take specific actions to
Key members of the soy industry, major corporations, and actors in the financial community are collaborating on efforts to protect against increased deforestation in
Brazil’s development bank is seeking to sell 50 percent of its stake in meatpacker JBS SA, a move that could bring about major corporate ownership changes. The
An investigation by several NGOs including Friends of the Earth and GRAIN shows that recent fires in Brazil have taken place on farms owned by Harvard University’s
The CEO of Carrefour Brasil, Noël Prioux, sent letters this summer to its main suppliers – Bunge, JBS, Marfrig, Minerva, and Cargill — asking them what concrete
France’s constitutional court upheld the country’s efforts to restrict the use of palm oil in biofuels. On October 11, 2019, oil major Total lost its fight in French
Meatpacker JBS has stopped providing specific details that show the origins of its beef supply. JBS’ “Trust From Origin” website was intended to provide a greater
Significant shifts in soft commodity trade are continuing rapidly. China’s palm oil imports in August reached their highest level in six years at 590,000 tons. At
Dozens of the largest fast-moving consumer goods companies (FMCGs) have pledged to combat deforestation in recent years. Many did so as part of the Consumer Goods Forum
Since the Amazon fires became worldwide news in August, companies operating in Brazil and the country itself have come under increased scrutiny and greater pressure from
Sime Darby aims to sell its assets in Liberia by the end of 2019. The company has been considering a possible sale since early 2019. In February 2019, Chain Reaction
High deforestation rates in Brazil and massive fires in the Amazon have put agricultural companies operating in the country and their investors in the spotlight.
The main drivers of deforestation in Ecuador are similar to those in other countries in the region: The cattle industry; logging (both for fuel and for commercial
In the first six months of 2019, ten companies were responsible for almost 19,000 hectares (ha) of deforestation in Malaysia, Indonesia, and Papua New Guinea. This
Indofood Sukses Makmur’s (Indofood) financial statements for 1H19 show that Citigroup, Standard Chartered and Rabobank no longer offer credit facilities to the
The European Commission (EC) this week released proposals to step up action to reduce deforestation globally and cut the EU’s exposure to deforestation-linked
BlackRock’s recent statement that it is engaging with palm oil companies to better understand the industry’s challenges related to biodiversity and deforestation
FGV Holdings Berhad released a statement in late June contesting a petition to ban importation of its palm oil into the United States. Grant & Eisenhofer ESG, a
Environmental finance firm Sustainable Investment Management (SIM) is launching a green bond initiative on the London Stock Exchange on July 4, 2019 for medium-sized
Institutional investors, asset managers, and other financial actors are increasingly considering certain climate-related risks and opportunities in their investment
JPMorgan Chase released in May its first assessment on the bank’s climate-related risks and opportunities. The assessment is mostly limited to energy and fossil fuels
Kroger, the largest grocery chain in the United States, announced on May 7, 2019 that it will adopt a no-deforestation policy. Kroger’s move is the result of years of
Similar to physical actors along commodity supply chains, investors are facing greater pressure to limit links to deforestation, a trend that could expose them to
Between March 7, 2019 and May 5, 2019, SLC Agrícola, the largest listed soybean producer in Brazil, cleared 1,355 hectares (ha) of native vegetation at its Fazenda
On April 17, 2019, the indigenous Shipibo Community in Peru announced that it filed complaints with the Roundtable for Sustainable Palm Oil (RSPO) against Alicorp and
China’s meat industry is now facing major challenges with African swine fever poised to cut the country’s pig population by a third. The impact of this sharp decline
The Malaysian government announced on April 10, 2019 that the Federal Land Development Authority (FELDA) would be given a cash injection of RM 6.23 billion (USD 1.5
With more reliance on Brazilian beef, Chinese downstream companies in the meat industry are facing risks from supply associated with deforestation. Higher demand for
Korindo Group, the private Indonesian palm oil, rubber and timber company, was suspended by multiple NDPE traders between 2016 and 2018 after evidence of deforestation
The United States, the largest beef consumer in the world, is accelerating a process to reopen beef imports from Brazil, the world’s largest beef exporter. U.S.
The number of cattle slaughtered in Brazil reached 31.86 million heads in 2018, the highest level since 2014. The higher rate of slaughter increases the risk of even
The family behind the Bewani Oil Palm Plantation (BOPPL), one of the largest deforesters in Southeast Asia, has divested from the plantation. This move raises fears of
The withdrawal of Indofood from the Roundtable on Sustainable Palm Oil (RSPO) and the subsequent suspensions of its subsidiaries signal a possible expanding gap between
Major commodity trader Cargill, a privately held company based in the United States, recently updated its plans to eliminate deforestation in all of its agricultural
Cencosud, the fourth largest supermarket chain in Brazil, published a statement to affirm it will source beef from only slaughterhouses that are not linked to Amazon
A group of U.S. Senators recently sent letters on February 4, 2019 to investors and asset managers urging them to take into account deforestation risks in their
Major agricultural commodity traders that operate in Brazil have agreed to a set of principles and transparency measures in an effort to reduce deforestation driven by
On January 22, 2019, Frontpage Africa reported that Sime Darby put its Liberian plantation up for sale. According to the news story, Sime Darby decided on this path as
COFCO, a major Chinese company active in agricultural markets, released a statement in late January at the World Economic Form (WEF) in support of shoring up
Ten growers in Malaysia, Indonesia and Papua New Guinea were responsible for almost 35,000 hectares (ha) of deforestation in 2018, according to analysis by Chain
Faced with investor pressure, food service provider Aramark announced January 23, 2019 that it plans to put into effect a no-deforestation commitment by 2025. As a
Higher Brazilian beef exports to China are likely to test sustainability commitments in both countries. China (including Hong Kong) imported 44 percent of Brazil’s
Major agricultural commodity trader Bunge updated its commitment to sustainability along its grain and oilseeds supply chains last month in an effort to further curb
BrasilAgro continues to clear land on its Chaparral farm in Correntina, a municipality in the Brazilian state of Bahia. In October and November, the company deforested a
Peru’s largest consumer goods company Alicorp is facing criticism over a recent report that the company is sourcing palm oil from deforested plantations. Research
The biggest deforester this year in Southeast Asia has been the Malaysian company Bintulu Lumber Development (BLD), which cleared 1,702 ha of peat and 1,307 ha of peat
On September 6, Mars announced their new Sustainable in a Generation Plan to invest USD one billion in reducing environmental impacts focusing on climate action, water
On 15 November 2018, the Roundtable for Responsible Palm Oil (RSPO) adopted a resolution that requires its members involved in primary procurement to publish their
New satellite images show deforestation occurred just days after adoption of more stringent RSPO requirements. On Thursday November 15, RSPO’s General Assembly adopted
The Roundtable on Sustainable Palm Oil (RSPO) has sanctioned Jakarta-based PT PP London Sumatra Indonesia Tbk (Lonsom), a subsidiary of Indofood Agri Resources
The election of populist Jair Bolsonaro to be president of Brazil will likely increase deforestation in the Amazon and the Cerrado amid higher output from the
Major supermarket retailer Lidl has committed to sourcing sustainable soy for its UK stores starting this month, the company said on October 12, 2018, in an effort to
Higher Chinese soy imports from Brazil could lead to increased levels of deforestation in the Amazon and the Cerrado. The U.S. trade war with China, which includes
Ten growers in Malaysia, Indonesia and Papua New Guinea have been responsible for almost 16,000 ha of deforestation in the first nine months of 2018, according to an
On September 3, 2018, Carrefour announced a new global program with nine actionable steps to encourage better eating habits for its customers through marketing and
Foresthints.news reports that, on August 25-26, the Indonesian Environment and Forestry Ministry sealed four of the five palm oil concessions owned by GAMA Plantation
On August 21, 2018, Malaysia-based Sime Darby Plantation Berhad (SDP) signed a Memorandum of Understanding (MOU) with China’s COFCO Group Co. Ltd. to cooperate on palm
From 2000 through 2011, 68 percent of all foreign capital, or USD 18.4 billion, flowing through nine of the top companies in the beef and soy markets in the Amazon was
A letter sent from investors to the Roundtable on Sustainable Palm Oil (RSPO), dated August 1, 2018, highlights growing demand in the investment and financial
In June 2018, the Bewani Oil Palm Plantation (BOPPL) in West Sepik, Papua New Guinea confirmed that its mill, Vanimo Green Palm Oil Limited, was due to be
Amid the U.S.-China trade war, China is importing more soy from Brazil while the United States exports more soy to the European Union and other outlets, which may
Despite a stop work order, TH Plantations deforested 127 hectares (ha) of peat forest between March 17 and July 25, 2018 (see maps below). Figure 1: 127 ha deforestation
International commodity trader Louis Dreyfus Company (LDC) has committed to “eliminate deforestation” and UK supermarket Tesco has committed to “help achieve zero
CalPERS, the largest U.S. state pension fund with USD 355 billion in assets under management and 1.9 million beneficiaries (as of July 11, 2018), updated its investment
On July 3, 2018, Wilmar International announced the resignation of Martua Sitorus as Non-Independent Non-Executive Director, with effective date of July 15, 2018.
Wilmar and GAMA Group appear to be connected via familial and business links, argue Greenpeace International in its June 25 report. Greenpeace claims the links between
In 1985, 57 percent of the Indonesian island of Sumatra, or 25 million hectares (ha), was covered by natural forest. By 2016, that number decreased to 11 million ha,
Overseas –Chinese Banking Corp (OCBC) stated it would peg Wilmar’s existing USD 200 million revolving credit facility interest rate to sustainability criteria. In
Carrefour will invest USD 1.5 million towards sourcing sustainable beef and the state of Mato Grosso’s initiative, which seeks to restore degraded land and protect
As of Q3 2017, Harvard’s endowment was valued at USD 37.1 billion. This ranked Harvard first out of 1,158 ranked university endowments in the United States. In its
As a result of “Operation Soy Sauce”, Reuters reported May 23, 2018 that the Brazilian government environmental agency Ibama and federal prosecutors have fined
On May 4, 2018, Felda Global Ventures stated publicly that Felda IFFCO had, as of March 12, 2018, sold its 50 percent equity investment in PT Synergy Oil Nusantara (PT
In 2017, Chain Reaction Research analysis showed that 74 percent of SE Asia’s palm oil refining capacity was covered by No Deforestation, No Peat, No Exploitation
Citigroup has canceled its loans to Indofood Agri Resources and its subsidiaries. Citigroup is exiting its overall relationship with Indofood other than specific
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
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 –
The Norwegian Government Pension Fund has slowly ramped up its response to deforestation concerns within its portfolio. The Fund has a history of addressing risks in
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
On January 24, PepsiCo announced that the company and its joint venture with Indofood Sukses Makmur, IndoFood Fritolay Makamur (IFL), had suspended purchasing
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
Deforestation, stop work orders and acquisition review at Asian Plantations As shown in Figure 1 (below), Felda Global Ventures’ wholly-owned subsidiary, Asian
Correction: an earlier version of this article stated that KKR “has not made its sustainability approach known.” In fact, KKR has committed to following Unilever’s
On November 9, the U.S. Department of Commerce announced final countervailing duties on imported biodiesel from Indonesia and Argentina. Countervailing duties (CVD) are
Asian Pacific Resources International (APRIL), one of the world’s largest pulp-and-paper companies, has been linked to deforestation in Indonesia. With the leak of the
Forest Heroes recently released a report, Green Cats: Scoring Palm Oil and Soy Companies on Forest Policies and Transparency, which analyzes the public pledges of 26
JBS has canceled a USD 500 million IPO of processed food subsidiary JBS Foods International BV (JBSFI) planned for 2018. The IPO was initially scheduled to occur in H1
In 2016, Chain Reaction Research reported (“Sime Darby: Liberian Crossroads”) that Malaysian palm oil conglomerate Sime Darby (SIME:MK) would be unable to fully
On September 12, 2017, Bunge announced it will acquire a 70 percent controlling ownership interest in IOI Corporation’s Loders Croklaan for USD 946 million, comprising
On September 6, Mars announced their new Sustainable in a Generation Plan to invest USD one billion in reducing environmental impacts focusing on climate action, water
Following a Board meeting on August 24, Felda Global Venture’s (FGV) executives updated its Sustainability Policy. The new policy states FGV pledged to halt peat
Unilever replied to this research note on August 22. Their reply is below in italics. Reuters reported on July 25 that Unilever is close to selling off its Baking,
On August 10, 2017, Noble Group posted a USD 1.75 billion loss for Q2 2017. Four days later, Moody’s, S&P and Fitch cut Noble Group’s credit rating one or two
Last week, JBS appointed Alfred “Al” Almanza as Global Head of Food Safety and Quality Assurance, reporting directly to JBS Global President of Operations
In the summer of 2016, Chain Reaction Research profiled Noble Group. At the time, Noble’s market cap was around USD 2 billion. Likewise, Moody’s, S&P and Fitch
In June, Ferrero won an EU lawsuit in the Belgian National Court against Ahold Delhaize. Delhaize, before its merger with Ahold in 2015, had run an advertising campaign
July 19, 2017 On June 29, the Financial Stability Board Task Force on Climate-Related Financial Disclosures (TCFD) published their final report including key
Noble Group has had a turbulent previous 2017. Adding to the turmoil, creditor HSBC has pushed for an investigation into Noble’s environmental practices. The
June 12, 2017, Chain Reaction Research analyzed that Unilever’s ongoing trading relation with Sawit Sumbermas Sarana (SSMS) might damage its sustainability reputation.
This June, the Norwegian government voted to ban palm oil-based biofuels in public procurement of fuels and public transport. The Norwegian Parliament – the Storting
In 2013, Noble Group was among the 100 biggest companies in the world by revenue. Since then, its shares have fallen 97 percent since their 2014 highs. Noble Group’s
Moody’s reported on Monday May 8, 2017 that IOI Corporation renewed commitment to complying with Roundtable on Sustainable Palm Oil (RSPO) certification requirements
As of April 28, it appears that Felda Global Ventures’ (FGV) management has yet to acknowledge the company’s possible risk exposure to Government of Indonesia’s
PepsiCo Faces Supply Chain Risks From Conflict Palm Oil Figure: Activists on Monday delivered their demand by draping a massive “Cut Conflict Palm Oil”
New evidence has emerged that Malaysian-based agri-business, Felda Global Ventures (FGV) (USD 1.7 billion market cap), continues to clear peat forest, contrary to its
Unilever Selling its Spreads / Margarine Business Unilever announced April 6, 2017 that it will sell its spreads / margarine business, possibly by Q2 2017. The move came
Mondelēz, Nestlé, Others Make Cocoa Deforestation Commitment 12 of the biggest companies in the cocoa supply chain including Cargill, Olam, Ferrero, The Hershey
Two Rotten Meat and Deforestation Scandals JBS SA, the world’s biggest meatpacking company, halted beef production at all but three of its 36 plants in Brazil last
KLK’s Equatorial Palm Oil Obtains Five-Year Tax Holiday Kuala Lumpur Kepong’s (KLK) Equatorial Palm Oil PLC gained a five-year extension to its tax holiday in
Markets and Traders Bearish The environment committee of the European Parliament last week adopted a resolution, in a 56 to 1 vote, urging the European Commission to
Sime Darby to Split Into Three Corporations in 2018 But No IPO Sime Darby announced that shares of its property and plantation divisions will be distributed to current
Investors With $600 Billion AUM Launch Latin America Forest Protection Initiative Green Century Capital Management announced it has organized 38 investors in the U.S.
Europe’s largest bank HSBC – with $165 billion market capitalization – announced that it is expanding its prohibited businesses commitment in the palm oil
Indofood Agri Resources New Palm Oil Policy Singapore-listed Indofood Agri Resources (IndoAgri) is one of the largest oil palm plantation companies in Indonesia, with a
Unilever Makes Produce & Protect Commitments On January 20, trade media reported that Unilever has signed a three-year Memorandum of Understanding with governments
The London Stock Exchange (LSE) reported that United Cacao Ltd. Managing Director and former Chairman Dennis Melka resigned from his post on Thursday, January 5, 2017.
CDP recently published its annual Global Forests Report analyzing corporate risks and opportunities linked to the four commodities – soy, timber, cattle, and palm oil
Cargill Receives Sustainability Awards from Government of Indonesia Three of Cargill’s palm oil mills recently received Indonesian government awards for achieving
Bloomberg reports today that Dimensional Fund Advisors, a U.S. investment firm with $445 billion of assets under management, has divested two of its portfolios of all
Insas Berhad’s wholly owned subsidiary M&A Securities is the adviser, sponsor, and underwriter for Matang Bhd’s upcoming $3.8 million IPO on the ACE Market of
Feronia, Inc., which trades on the Toronto Stock Exchange, successfully raised $2.5 million in an equity private placement valued at $0.22 per common share with the CDC
Indonesia Strengthens Peatlands Moratorium This week, the Republic of Indonesia revised it peatland regulations targeting a permanent peatland moratorium. According to
KLK Withdraws from Customary Land in Collingwood Bay, Papua New Guinea In December 2012, Kuala Lumpur Kepong Berhad (KLK) bought 51% of the equity in Collingwood
The consequences of the November 8, 2016 U.S. election may result in greater uncertainty regarding future U.S. biofuels imports. As reported in Bloomberg, the incoming
AAK Acquisition CalOils Adopts Zero Deforestation Policies AAK, a leading producer of value added vegetable oils headquartered in Sweden, completed its acquisition of
Meteorological data may demonstrate that environmental conditions such as seasonal water and sunlight deficits are hindering West African palm oil production yields, in
KLK Makes $441 Million Hostile Bid MP Evans Kuala Lumpur Kepong Berhad’s (KLK) $441 million hostile bid for M.P. Evans today sent MP Evans shares up 45 percent to a
The United Nation’s Paris Agreement, requiring all participating countries to make GHG commitments on climate change, will enter into force on November 4th. Under
The Cameroon Development Corporation (CDC) is seeking to increase its palm oil production 67% by 2020, from 270,000 metric tons to 450,000 metric tons. Current
Yesterday, Sime Darby (SIME:MK) raised $571 million in a private placement of 316.4 million shares. The private placement was oversold with demand greater than shares
A New CEO: New Direction? In April 2016, Mr. Zakaria Bin Arshad became Felda Global Ventures (FGV:MK) CEO and Group President. During his tenure, FGV’s shares have
Nigerian Forex Limits Drive Palm Oil Returns Nigeria’s prohibition on importers using foreign exchange reserves to fund capital expenditures and trade finance may be a
BlackRock Calls Out Deforestation as Climate Risk BlackRock, the world’s largest asset manager with close to $5 trillion under management, published “Adapting
Wilmar Expanding JV in Nigeria PZ Wilmar and the Nigerian Institute of Oil Palm Research announced on September 9, 2016 that they signed a Memorandum of Understanding to
KLK Expanding Into Liberia Equatorial Palm Oil PLC (PAL:LN), the London Stock Exchange AIM listed palm oil development and production company announced September 6, 2016
Sampoerna Agro Fined $81 Million for 2014 Fires On August 15, the Government of Indonesia fined Sampoerna Agro $81 million for 2014 forest fires on 3,000 hectares on its
Moody’s maintains negative outlook on IOI while IOI’s Q2 2016 earnings negative Moody’s announced that it is reverting IOI Corporation’s (IOI:MK) credit outlook
Stranded Assets Malaysia and Indonesia produce about 85% to 90% of global palm oil. Palm oil is used in about 50% of all packaged food products in supermarkets. In
IOI Corporation’s (IOI:MK) shares railed 5% to 4.45 ringgit from 4.23 ringgit on the news that the Roundtable on Sustainable Palm Oil (RSPO) informed IOI that it will
Global and SE Asian Supply Update Globally, according to the U.S. Department of Agriculture, global palm oil production over the next two years is forecast to grow by 6
Indonesian Five-Year Moratorium As Chain Reaction Research reported previously, in April Indonesia’s President Joko Widodo proposed a five-year moratorium on new palm
Cargill Suspends IOI According to the Financial Times, the leading global commodity trader Cargill has suspended ties with IOI Corporation (IOI:MK). The move comes after
CPO Prices Collapse 25% Since March 2016 As reported by the Financial Times, near-dated palm oil futures contracts trading on the Bursa Malaysia are now at 2016 lows, as
Buyers paying more for CSPO and IPOP disbanded As covered in previous Chain Reaction Research analysis, IOI Corporation’s (IOI:MK) temporary suspension from the
Brexit Impacts Palm Oil Markets Malaysian palm oil futures decreased last week, partially as a result of a 0.1% forecasted decline in 2016 global GDP to 3.1%, following
In 2015, according to the Government of Indonesia, 2.6 million hectares of Indonesia’s forests burned out of control as a result of dryer weather and deliberately set
Impacts $60 billion in annual public procurement The Government of Norway last week announced a ban on public procurement of products, services and goods that directly
Indofoods’ parent Salim Group has reportedly acquired four palm oil concessions in West Papua. These four plantations are currently clearing forests and setting up
45% of EU Palm Oil Used by Transportation Sector As reported by Transport & Environment, in 2014 45% of all palm oil consumed in Europe was used for biodiesel by the
Indonesian Government Aspirations Moving to Actions Indonesian President Joko Widodo took office at the end of 2014 with a mandate to improve the country’s governance
In response to IOI Corporation’s (IOI:MK) decision to sue the Roundtable on Sustainable Palm Oil (RSPO) last week, several major global corporations, such as Unilever,
IOI Takes RSPO to Court On Monday, IOI Corporation (IOI:MK) announced they were taking the RSPO to court over its decision to temporarily suspend the palm oil giant. IOI
Breaking News: Felda Global Ventures (FGV) Withdraws from RSPO Certification of 58 Mills, Possibly Due to Peatland Deforestation As reported today by Reuters, Yahoo
Indonesian Palm Oil Companies and Gender Equality Chain Reaction Research partner Climate Advisers surveyed the Board of Director membership of the 21 Indonesian
Conflicting messages from Indonesian government confuse global corporates, increasing financial risk to shareholders This past week, the Government of Indonesia issued
This edition of The Chain takes a special country-by-country look at developments in some key palm oil consumer markets.
Palm Prices Up, Production and Consumption Down CPO prices rallied 6.9% during the month of March. Some national governments are viewing the higher prices as sources of
The Roundtable of Sustainable Palm Oil (RSPO) today announced that it was suspending the ability of leading palm oil producer IOI to sell Certified Sustainable Palm Oil
El Niño Impacting SE Asian Palm Oil Prices Throughout Southeast Asia, many palm oil companies are seeing their plantations underperform due to the impact of this
Chicago Mercantile Exchange Delists U.S. Dollar Cash Settled Crude Palm Oil Futures On Monday, December 7, 2015, Chicago Mercantile Exchange Inc. (CME) delisted the
Wilmar update report shows mixed progress on implementation Last week at the World Economic Forum gathering in Davos, agribusiness giant Wilmar International released
Palm oil sector first in pilot project on Indonesian Sustainable Financing On November 23, 2015 eight Indonesian banks committed to implementing sustainable financing
Jokowi bans peatland development in response to haze crisis President Jokowi’s administration has taken its strongest step yet to respond to Indonesia’s ongoing haze
Amidst growing haze crisis, Jokowi calls for moratorium on peatland development The ongoing haze crisis in Indonesia has been called “the biggest climate story on the
The Roundtable on Sustainable Palm Oil (RSPO) has issued a stern warning to IOI Corporation to address serious legal and policy non-compliances in Kalimantan, or face
In February 2015, CRR ranked investment in Kuala Lumpur Kepong (KLK) as “High Risk” among others in view of gaps between sustainability commitments and its high risk
Norges Bank divests from Daewoo International over palm oil deforestation Norges Bank, the central bank of Norway, announced this week its decision to divest funds
First Resources is first major palm oil grower to adopt zero-deforestation policy Singapore-based palm oil company First Resources (FR:SP) committed earlier this month
Bunge cuts off supplier planning to clear peatlands On Tuesday, agribusiness giant Bunge (BG:US) responded to reports that Malaysian palm oil company BLD Plantation Bhd
Astra puts moratorium on deforestation, working toward full policy Indonesian palm oil producer Astra Agro Lestari (AALI:IJ) announced today an immediate moratorium on
Jardine Matheson under fire for deforestation connection, portending increased focus on growers An alliance of campaign organizations launched a major new global
Triputra Agro Persada (Triputra/TAP) is a privately owned Indonesian palm oil and rubber plantation company. The company has a land bank of approximately 300,000
ADM tells suppliers of soy, palm oil to end deforestation Agribusiness giant Archer Daniels Midland (ADM:US) announced yesterday that it will adopt a new No
On 26 February 2015, Chain Reaction Research (CRR) published its sustainability risk analysis of Malaysian palm oil company Kuala Lumpur Kepong (KLK). The report gives
3M makes sustainability commitment, pressure mounts on APRIL Manufacturing giant and “Post-it note” maker 3M (MMM:US) recently announced an updated Pulp and Paper
Santander Bank cuts ties with APRIL over deforestation Santander Bank (SAN:SM) announced last week that it will no longer provide financing to the Singapore-based Asia
IOI Corporation CEO Confirms Forest And Human Rights Policy On Monday, IOI Corporation (IOI:MK) CEO Dato’ Lee Yeow Chor publicly confirmed that its commitment to
Wilmar announces major transparency initiative for palm oil Today, agribusiness giant Wilmar International (WIL:SP) announced a major new transparency initiative, as
KLK commits to High Carbon Stock protection This week, Malaysian palm oil trader Kuala Lumpur Kepong (KLK:MK) announced that it will employ the industry standard for
EDITOR’S NOTE 22 March 2016: Since this edition of The Chain was published, Chain Reaction Research and other analysts revised their numbers due to newly
Analysis of palm oil grower BW Plantation shows significant risks On November 24th, the shareholders of the Indonesian oil palm plantation company PT BW Plantation Tbk.
75% of world’s palm oil now covered by deforestation-free policies Three quarters of the world’s traded palm oil is now covered by zero-deforestation sourcing
Bunge announces forest conservation policy On Monday, agribusiness giant Bunge (BG: US) announced a new policy to end deforestation in its palm oil supply chain.
Indonesian government cracks down on corruption and deforestation The Indonesian government has shown some signs of cracking down on corruption and illegal forest
New York Declaration on Forests At Tuesday’s UN Climate Summit in New York City, world leaders from governments, businesses, and NGOs joined together to announce the
Five large palm oil producers announce HCS moratorium, but questions remain Five major palm oil producers – Sime Darby (SIME:MK), Asian Agri, IOI Corporation (IOI:MK),
Indonesian parliament floats bill to restrict foreign firms; Jokowi on haze The Indonesian parliament introduced a new draft bill to restrict the percentage of
New Singapore Haze Law: On August 5th, the Singaporean parliament approved the Transboundary Haze Pollution Bill, in order to fight haze from deforestation in the
Cargill, one of the world’s largest agribusiness companies and a significant palm oil trader and producer, today announced a new “No Deforestation, No Peat,
In June, Papua New Guinea’s Prime Minister Peter O’Neill announced the cancellation of all illegal agricultural land leases. He also abolished future
We’re preparing an upcoming product that analyzes sustainability and financial risk in the supply chains of Kuala Lumpur Kepong (KLK:MK), a Malaysian multinational
Deutsche Bank drops palm oil supplier Bumitama (BAL:SP): This week, Deutsche Bank announced that it had sold all of its shares in Indonesian palm oil supplier Bumitama
On 12 May 2014, Archer Daniels Midland Company (NYSE: ADM) announced that it will make its palm oil supply chain fully traceable. To do so, ADM will work with Wilmar,
Big moves by international investors this week clearly demonstrate the potential risk of investing in contested land. HSBC Malaysia could be the first foreign bank to
The Prime Minister of Papua New Guinea announced he will cancel controversial land leases that have been exploited by the timber industry – and require all new
In just the past two weeks, four major consumer-facing companies have committed to sourcing deforestation-free palm oil. Following in the footsteps of major palm oil
This week, fires in Indonesia reached levels that match last year’s haze crisis across Southeast Asia. Many of these fires are concentrated on peat soils, which
Last Friday, the palm oil industry crossed an important threshold: Golden Agri-Resources (GAR) announced a decision to source only palm oil produced without
There recently have been a number of breaking updates in the palm oil sector, which reflect rapidly changing market entry requirements on deforestation:
We are writing to announce that Kellogg recently adopted a new palm oil sourcing policy that requires its suppliers to provide fully traceable, no-deforestation,
Asia’s largest agribusiness company, Wilmar International, and consumer products leader Unilever today announced an agreement to protect forests and communities
We wanted to alert you to news on Bumitama Agri Ltd (BAL:SP) that could have a bearing on its market and access to finance. Within the last few days, Bumitama has been
Chain Reaction Research looks forward to providing dispassionate, credible analysis supported by technical and fundamental analysis of commodity supply chains. Please do
