Indonesian palm oil corporations not appearing quick sufficient on promise to not minimize deforestation: report

  • A brand new report from London-based non-profit CDP says solely 22% of corporations sourcing or producing palm oil in Indonesia do not need public and complete deforestation insurance policies.
  • The report additionally discovered that solely 28% of corporations have sturdy public non-deforestation commitments that cowl 100% of manufacturing and embrace a cutoff date earlier than 2020.
  • Within the gentle of the report, specialists are calling on extra corporations to undertake stronger deforestation insurance policies that incorporate societal parts, together with remediation, restoration, compensation for previous damages, and/or rights and/or rights of native communities. Dedication to guard livelihoods.

JAKARTA — Lower than 1 / 4 of corporations producing or sourcing palm oil from Indonesia have forest-related insurance policies in step with greatest practices, a brand new report says.

The report by CDP, a worldwide nonprofit that promotes environmental reporting and threat administration by corporations and cities, analyzes information supplied by 167 corporations.

Whereas 86% of corporations had set a forest coverage, solely 22% conformed to greatest practices, which the group defines as dedicated to ending deforestation and the transformation of pure ecosystems; no crops on peatlands; to conduct restoration and/or present compensation for previous damages; and shield the rights and livelihoods of native communities.

“The low variety of corporations with sturdy insurance policies aligned with greatest practices signifies a associated absence of intent to remove forest loss from company worth chains,” the report stated.

That determine was up from 14% in 2021, however progress is just not sufficient to satisfy Indonesia’s aim of turning its forests right into a carbon sink by 2030, based on Rini Setiavati, senior supervisor of forests at CDP.

“If we now have a aim of a forest constructive future by 2030, we’d like it in an enormous means,” Rini instructed Mongabe. “We’d like 90% of corporations, not 22%, to have sturdy insurance policies, and never simply insurance policies and dedication, however bold objectives and robust implementation as nicely.”

Over the previous a number of a long time, palm oil has been a serious driver of deforestation in Indonesia, which is the world’s largest producer of the ever-present commodity. not too long ago research discovered that business was accountable for a few third of the nation’s forest loss from 2001 to 2019, though deforestation associated to palm oil final occurred in 2016 and has fallen lately.

Consequently, many corporations that plant or course of, commerce or use palm oil have pledged to interrupt the hyperlink between deforestation and their provide chain.

“Whereas corporations are transferring in the proper course, extra motion is required to maintain this pattern,” stated Thomas Maddox, international director of forests and lands at CPD.

Regardless of a checkered document, company zero-deforestation insurance policies have proven some success, based on Harry Poornomo, a scientist on the Heart for Worldwide Forestry Analysis (CIFOR).

“Our research in South Sumatra Province exhibits that commitments from the general public sector can considerably scale back deforestation, but when they’re mixed with commitments from the personal sector, it will possibly [further] Much less deforestation,” he instructed Mongabe. “That is why commitments matter and should be scaled up, expanded, monitored, and rewarded and inspired.”

A palm oil plantation in East Kalimantan. Picture by Nanang Suzanna.

Firm’s response

Most corporations had been unable to trace the origins of their palm oil provides, a key situation for making good on a dedication to not deforestation.

Solely 9% of corporations had been in a position to absolutely hint their provide chain as much as the mill stage, and solely 4% had been in a position to take action as much as the plantation stage.

One agency that claims to have achieved full traceability is Golden Agri-Assets, a department of Indonesia’s Sinarmas Group, which has zero-deforestation after years of getting one in all Indonesia’s most prolific forests. One of many first enterprise teams to subject a pledge.

“From our facet, complexity [that comes from implementing a zero-deforestation policy] Not very large. We’ve no plans to open [new] Plantation in Papua and different locations,” Agus Purnamo, one in all Sinarmas’ high palm oil executives, instructed Mongabe on the sidelines of a latest occasion in Jakarta. “Due to this fact, if our consumers demand [zero-deforestation], we are able to accomplish that. but it surely can’t be utilized for [other companies] whose plantations and mills are positioned in disturbed locations.

He stated that additional progress on this space would rely upon the coverage and regulation enforcement of the federal government.

“If it is a voluntary dedication [to adopt zero-deforestation policies]in order that’s the utmost we now have now,” Agus stated. “We will not ask extra corporations to volunteer. [in adopting zero-deforestation policies] As a result of everybody has their very own issues.”

In line with Mardi Minangsari, head of Indonesian NGO Kaom Telpak, even when corporations lack the power to satisfy their commitments, the adoption of insurance policies will create alternatives for forest conservation.

“Having NDPE commitments is step one,” she stated, utilizing an acronym which means “no deforestation, no peat and no exploitation.”

“I actually help [the adoption of such policies] As a result of it means we are able to additionally assist them by offering experiences on deforestation, battle and different points, Mardi stated. “Generally, corporations do not have sufficient capability, particularly with large plantations, to see what’s taking place of their concessions.”

CDP’s Rini stated the federal government might subject rules that require better transparency and accountability from corporations to encourage them to undertake or strengthen their NDPE commitments.

“If corporations are doing higher in sustainability, it will possibly contribute to the achievement of nationwide environmental objectives,” she stated.


Gaveau, D. L., Locatelli, B., Salim, M. A., Manurung, T., Descals, A., Engelsson, A., … Sheel, D. (2022). Deforestation in Indonesia has been attributable to a decline in palm oil growth and low oil costs. yet another, 17(3) E0266178. DOI: 10.1371/journal.pone.0266178

Banner picture: Palm oil plantations in West Kalimantan, Indonesia. Picture by Nanang Suzana/CIFOR through Flickr (CC BY-NC-ND 2.0).

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agribusiness, agriculture, enterprise, company environmental transgressors, company environmental violators, company accountability, company, deforestation, drivers of deforestation, surroundings, forest loss, forest, palm oil, plantations, rainforest deforestation, rainforest destruction , rainforest, menace to rainforests, tropical forest, zero deforestation commitments


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