A deeper look into major palm oil groups operating in Indonesia
Alicorp, the largest Peruvian consumer goods company and a subsidiary of the Romero Group conglomerate, exemplifies a company facing the growing ESG risks — and potential opportunities — with an outsized reliance on land use for its operations. Following the submission of complaints to the Roundtable on Sustainable Palm Oil (RSPO) against the company in 2019, Alicorp has suffered financial and reputational damage that culminated in Norges Bank Investment Management (NBIM), the Norwegian sovereign wealth fund, divesting $12 million from Alicorp in March 2020.
Since 2010, palm oil production in Peru grew by the fastest rate in the last four decades.
The three mills mapped below sourced palm from plantations that were once the subject of an RSPO complaint before changing ownership. Alicorp sourced from those mills and saw financial blowback.
Daily close, converted to U.S. Dollars.