A deeper look into major palm oil groups operating in Indonesia
A report on five companies — Batu Kawan, Astra Agro Lestari, IJM Plantations, Indofood Agri, and Anglo Eastern Plantations — that have not taken the step toward greater transparency and sustainability by joining or complying with the Roundtable on Sustainable Palm Oil (RSPO), an industry certification body.
From 2012-2018, publicly traded palm oil growers in South East Asia, that are members of the RSPO, have outperformed laggards by 25 percent. The divergence between the two groups became more pronounced in 2015, when the NDPE market started to mature and NGO campaigns intensified against companies tied to deforestation.
Aggregated daily closing prices, 12/21/2012-4/25/2019
Based on public data, these companies are among the most linked to deforestation globally. The list is incomplete due to gaps in disclosures. U.S. financial institutions have the greatest amount of capital exposed to deforestation.
The majority of major suppliers identified in this Deep Dive are not certified members of the RSPO demonstrating that there is a sizeable market to allow plantations and traders to continue business-as-usual with unsustainable practices. Below, available data on the top five sellers by revenue generated selling to the companies analyzed in this report.
Despite pressure from major companies there remains a market for unsustainable palm oil. This Deep Dive identified that most palm oil buyers are not RSPO certified. Below, available data on the top five buyers by cost paid to the companies reviewed in this report.
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