WWF - Palm oil publications

REPORT: Palm oil market and sustainability in India

2013-02-01

"Palm Oil Market and Sustainability in India" is a new WWF report that looks at the global palm oil market and sustainability trends through an Indian lens. It provides an up to date look at palm oil production and market trends, with a focus on India's role as the world's biggest importer of palm oil.

The report underscores the negative environmental and social impacts of unsustainable palm oil plantations and highlights initiatives underway to address these issues, such as the Roundtable for Sustainable Palm Oil (RSPO).

It also focuses on the actions that the Indian government and companies operating in India can take to support sustainability in the palm oil sector.

India is the world's largest consumer of palm oil and is responsible for 23% of the global consumption in 2011-12. It is highly dependent on Indonesia for its palm oil supply, with Indonesia supplying almost 73% of India's local demand. The country therefore plays a key role in the global trade of palm oil and likewise can play a key role in making that trade more sustainable.

REPORT: Profitability and Sustainability in Palm Oil Production

2012-05-02

Profitably and Sustainability in Palm Oil Production is a first-time study that comprehensively examines the financial costs and benefits of producing sustainable palm oil under the guidelines set out by the Roundtable on Sustainable Palm Oil (RSPO). The report was produced jointly by WWF, CDC, the UK's development finance institution, and the FMO, the Dutch development bank.

The report finds that economic benefits outweigh the financial costs of pursuing sustainable palm oil operations.

"Our research found that many firms who switched to producing sustainable palm oil – which is good for people and the environment – reaped significant return on their investments," said WWF's Joshua Levin, the report's lead author. "In some cases, switching to sustainable production was economically transformative for the business. Producers, buyers, and investors should see sustainable palm oil as a serious business opportunity."

The growing demand for palm oil is adding to the already severe pressure on remaining rainforest areas of the world, and is threatening the survival of species such as the orang-utan, the Sumatran tiger, rhino and elephant. Forest loss and the draining of peatlands for palm oil plantations is also contributing to climate change and displacing local people who rely on the forest for food and shelter.

The report shows that the business benefits gained from achieving RSPO certification "typically outweigh the costs of implementation—in many cases significantly—yet often through unexpected and indirect channels."

For example, while many firms were initially attracted to RSPO for the price premiums commanded by certified sustainable palm oil, the larger financial gain often turned out to be resulting improvements in operations, documentation systems, labor relations, and other internal factors. In fact, each major category of benefits was, in and of itself, capable of outweighing RSPO implementation costs, according to the report.

The report's research shows that adopting sustainable practices, even in a high impact industry like palm oil, can result in net financial benefits to producers—providing gains for people, the planet and the bottom line.

WWF engaged with other NGOs and the palm oil industry to launch the RSPO in 2003. Since then, WWF has worked to ensure that the RSPO standards contain robust social and environmental criteria, including a prohibition on the conversion of valuable forests. Certified Sustainable Palm Oil has been available since November 2008 and now makes up more than 10 percent of the global palm oil market. It provides assurance that valuable tropical forests have not been cleared and that environmental and social safeguards have been met during the production of the palm oil.

"This study shows that getting RSPO certified makes good business sense as well as good environmental and social sense for growers. WWF hopes that the findings will persuade all producers to join the RSPO and to start getting certified." added Adam Harrison, WWF's representative on the Executive Board of the RSPO. "But the responsibility for making the industry sustainable also lies with those companies that buy and use palm oil. WWF urges them to immediately commit to increase purchases of certified sustainable palm oil and to ensure that 100% of their palm oil use is certified by 2015."

For further information:

Ian Morrison Media & External Affairs, WWF - US, +1 202-372-6373, Ian.Morrison@wwfus.org

Chris Chaplin, Media Officer Asia Pacific, WWF International, + 65 9826 3802, cchaplin@wwf.sg

About WWF
WWF is one of the world's largest and most respected independent conservation organizations, with over 5 million supporters and a global network active in over 100 countries. WWF's mission is to stop the degradation of the earth's natural environment and to build a future in which humans live in harmony with nature, by conserving the world's biological diversity, ensuring that the use of renewable natural resources is sustainable, and promoting the reduction of pollution and wasteful consumption.

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REPORT: Oil Palm Development in Cameroon

2012-04-30

The paper, available in English and French, targeted at government, private sector and civil society, seeks to stimulate a debate regarding the palm oil industry's growing demand for large tracts of land in Cameroon, notably in forest areas.

The government of Cameroon has committed to become an emerging economy by 2035, and the agricultural sector has a major role to play in achieving this goal. Cameroon is committed to expand its production of oil, and to address its current net balance of trade (as of 2012, Cameroon imports 50,000 tons of palm oil per year).

There are concerns that leasing large tracts of forest to the international agricultural industry is not the way to address the demand for palm oil. WWF, together with IRD and CIFOR, have prepared this briefing paper to stimulate a debate around the issue and to support the government with constructive ideas on how palm oil expansion can be achieved sustainably in order to support the country's economic growth strategy.

The paper calls for an emphasis on a sustainable oil palm industry, specifically on:

finding suitable degraded lands to expand oil palm plantations
focusing on improving yields
promoting a small-holder approach
improving transparency
adopting the principles of the Roundtable on Sustainable Palm Oil (RSPO)

REPORT: Palm Oil Investor Review 2012

2012-04-29

Singapore - Environmental and social impacts of palm oil plantations could pose a material risk to investment in the fast growing sector, according to an investor survey released by WWF to a recent high-level meeting of investors and producers.

WWF's first-of-its-kind Palm Oil Investor Review 2012 underlines how growing concern over deforestation, biodiversity loss and community conflict could impact the industry and shows the intensifying spotlight being placed by investors on the sustainability of the palm oil industry.

More than 50 million tonnes of palm oil are used worldwide each year in everyday products including food and cosmetics. From 2010 to 2020, this volume is projected to increase by over 65%. The growing demand for palm oil has resulted in rapid and poorly managed expansion of production, causing deforestation, species loss, greenhouse gas emissions and social conflicts with local communities.

"Investors are increasingly aware of the strong link between sustainability and long term investment success," said WWF's Jeanne Stampe, co-author of the report. "Investee companies that integrate sustainability into the core strategy and operations are better able to mitigate risks and exploit opportunities, thereby deriving business benefits and delivering better investment performance.

WWF surveyed 35 key palm oil sector investors to assess their views and management of the sustainability challenges inherent in the palm oil industry.

Nearly two thirds of the investors surveyed are experiencing increasing demand for Environmental, Social and Governance (ESG) screens from their institutional clients and this is magnifying their focus on ESG issues. Even passive investors such as index funds are starting to show interest in new ESG overlays.

While a larger majority of investors (69%) already apply a responsible investment policy, many of these policies do not extend beyond governance, however over 50% of investors would consider creating dedicated policies e.g. a broader sustainable land-use policy.

Investors do face internal organizational constraints in addressing ESG risks such as the lack of internal ESG capabilities or firm-wide access to internal ESG analysts, but several are actively looking at internal strategic options to address these constraints, for example formulating centralised ESG risk functions and boosting internal ESG analyst teams.

"The palm oil sector presents an attractive growth proposition for investors, but ESG issues and the lack of company disclosure still cloud the ability of many to invest," said Stampe.

According to investors, reputational risk, poor environmental performance and lack of company ESG disclosure pose the greatest challenges to greater investment into the sector and the key factors to overcome these are availability of key data, the strengthening of the RSPO, demonstrable progress by its members toward certification and legislative changes that support the RSPO.

Investors see the Roundtable on Sustainable Palm Oil (RSPO) as the most influential initiative and the de facto standard for investment screens, but want it to cover more issues such as corruption and have "more teeth", to ensure that members make and meet their commitments towards sustainable palm oil.

WWF support

WWF sees the financial sector as an important driver of sustainable palm oil production and trade. "Investors are uniquely placed to influence investee companies to adopt sustainable practices through active engagement and exercise of proxy voting rights, and through directing their investment capital towards sustainable palm oil producers, " said Stampe.

The report provides in-depth recommendations to assist investors to overcome some of these challenges so as to maximise their ability to guide the industry. WWF will continue to support the financial sector by providing information and guidance through tools, research updates, and workshops with finance sector partners.

"If we all – investors, the RSPO and stakeholders such as WWF – work together, we can ensure that the palm oil industry expands in a sustainable way, so that long-term investment returns are enhanced and emerging economies benefit from sustainable development." said Jeanne Stampe.

For further information:

Chris Chaplin - Media Officer Asia Pacific, WWF International,
+86 10 6511 6272, Mobile: +86 13911747472, cchaplin@wwf.sg

BROCHURE: The Journey Towards Sustainable Palm oil in India

2012-03-02

Palm oil is a common ingredient in a wide range of consumer good products found in India.

However, the use of this vegetable oil is linked to global warming and to the loss of some of the most fragile tropical rainforests.

How can Indian companies be part of the solution and ensure they have access to a supply of sustainable palm oil well into the future?

BROCHURE: The Journey Towards Sustainable Palm oil in China

2012-03-02

Palm oil is a common ingredient in a considerable number of consumer good products found in China.

The bad news is that the use of this vegetable oil is linked to global warming and to the loss of some of the most fragile tropical rainforests on Earth.

How can Chinese companies be part of the solution and ensure they have access to a supply of sustainable palm oil well into the future?

INFORMATION: The RSPO New Planting Procedure: Ensuring Responsible Expansion by Palm Oil Producers

2012-01-10

In January 2010, the Roundtable on Sustainable Palm Oil introduced a new procedure to make sure that members which expand their plantations do so responsibly.

Introduced to help show that the RSPO is effective in controlling damaging deforestation, the so-called New Planting Procedure (NPP) is not an addition to the RSPO guidelines for sustainable palm oil production, but rather helps reinforce the RSPO's already existing criteria governing responsible expansion.

In its first year, growers and companies were slow to adopt the NPP, claiming it is time-consuming, poorly understood and unnecessary.

The NPP was proposed to the RSPO General Assembly in November 2008 by WWF and New Britain Palm Oil (an RSPO member and palm oil producer). Formalized in May 2009, it was approved by the RSPO Executive Board four months later and was implemented from January 2010. The aim is to ensure that the social and environmental requirements of the RSPO are taken into account before new plantations are developed.

REPORT: WWF Palm Oil Buyers' Scorecard 2011

2011-11-24

The Palm Oil Buyers' Scorecard 2011 measures the performance of 132 major retailers and consumer goods manufacturers against 4 areas which show whether these companies are acting responsibly.

The Scorecard focuses on European companies, since they are leading the way in transforming the market for palm oil, and were the first to commit to the Roundtable on Sustainable Palm Oil (RSPO).

However, it also looks at other markets such as Australia and Japan where some progress is being made. We also compared the performance of some companies assessed in 2011 and in our previous Scorecard in 2009.

GUIDELINES : Responsible purchasing of palm oil: a step-wise approach

2010-03-11

The aim is to help companies to promote and support the production and use of sustainable palm oil and to minimize the usage of palm oil from plantations that have been established on cleared forests, or from plantations with unacceptable social and environmental standards and/or unresolved land tenure conflicts.

New guide for financial institutions: The Palm Oil Financing Handbook

2008-12-20

How can banks and investors reduce their risks in the palm oil sector?
How can financial institutions encourage sustainable palm oil production?
These two questions are the starting point for The Palm Oil Financing Handbook, which aims to help financial institutions create or strengthen their own responsible palm oil finance and investment policies. The handbook offers step-by-step advice on everything from defining the scope of such a policy, to developing appropriate screening criteria and helping client or investee companies comply with the policy. Read more

Download The Palm Oil Financing Handbook here!

Palm oil, soy and tropical forests: a strategy for life

2008-10-09

Between 2000 and 2006, the area harvested for soy and palm oilglobally increased by almost 22 million hectares—an area twice thesize of Cuba. Today this expansion continues unabated, and in manyplaces is occurring at the expense of natural rainforests and thepeople who depend on them to survive.

Why is this happening? A massive demand for soy and palm oil, whichare used in a wide range of everyday products including animal feed,margarine, ice cream, cosmetics, detergents and biofuels, is drivingthese trends. Today, agricultural expansion is actually a much moreserious threat to forests than timber trade.

There are solutions to deal with the environmental problems caused bythese crops. Companies, investors, governments and consumers shouldencourage soy and oil palm cultivation that protects the environmentand people's livelihoods.

Download new WWF brochure to learn more.

Guidelines for Better Management Practices on Avoidance, Mitigation and Management of Human-Orangutan Conflict in and around Oil Palm Plantations

2007-05-11

In 2006, Indonesia and Malaysia accounted for 83% and 89% of global exports of palm oil respectively, with export trends expected to double by the year 2020. This has led to the expansion of oil palm. While oil palm production is a major source of income for Indonesia, and some oil palm plantations are well managed, others have imposed social and environmental costs.

It is recognized that there are environmental pressures on oil palm expansion to areas having high conservation values, including orangutan habitat, causing a significant decline in orangutan populations, particularly as palm oil can only be cultivated in tropical countries such as Indonesia and Malaysia.

It has been demonstrated that oil palm plantations can only support 0 to 20% of the mammals, reptiles and birds that the land supported prior to conversion. Where natural ecosystems have been converted to other land uses, conflicts arise between humans and wildlife, resulting in wildlife being killed, and poached for trade. This includes orangutans, the only great ape found in Asia. Today, orangutans are threatened by extinction in the wild.

Orangutans and many other species are being captured, and often end up injured, starving, or dead. Unplanned forest conversion is exacerbating this situation, completely disregarding the importance of biodiversity as genetic resource for human welfare.

A key issue that needs to be addressed is preventing the increase of conflicts between orangutans and humans. To this end, several conservation organizations and academic institutions have formed a communication forum to develop orangutan rescue guidelines for use by oil palm companies.

These technical guidelines were compiled as guiding principles for Better Management Practices (BMP) of human-orangutan conflict management, including the protection of HCVF (High Conservation Value Forests) areas within oil palm plantations. This document aims to help industrial stakeholders identify the right steps to adopt BMP, which is of clear benefit for both conservation and industrial activities.

High Conservation Value Forests: The concept in theory and practice

2007-02-05

This brochure will interest anyone seeking solutions for forest use that look at not only the economic value of forests but also the critical social and ecosystem values and services which forests provide to people and nature.

Readers will be able to learn about the concept of High Conservation Value Forests (HCVFs) and how it has been applied throughout the world. They will also be able to see how the concept has been used in many different settings and by a wide range of stakeholder groups, including:

government policy-makers involved in conservation, forestry and landscape planning;
forest managers and owners interested in responsible forest management and certification;
investors and donors concerned with reducing the social and environmental risks of their support to forest sector projects; and
organizations working in conservation and sustainable development.

The brochure also includes a brief discussion of how the HCVF concept and its uses may develop in the future.

In the last five years, the HCVF concept has been picked up by many groups around the world and used in many different applications. This rapid expansion has been accompanied by exciting innovations but has also brought challenges in maintaining consistency in how the concept has been used and clarity in how it has been understood. It has also made it difficult to keep track of all the innovation and experimentation going on.

The aim of this brochure is therefore to clarify the concept, show its strengths and limitations, illustrate how it has been applied throughout the world, and look forward to how the concept may evolve in the future.

Realising Sustainable Oil Palm Development in Indonesia – Challenges and Opportunities

2006-09-11

Paper on sustainable palm oil presented by Fitrian Ardiansyah (WWF-Indonesia) at the International Oil Palm Conference (IOPC) in June 2006 in Bali.

Guidelines to better manage Human-Elephant Conflicts in Indonesian and Malaysian oil-palm plantations

2005-07-25

Guidelines on the Better Management Practices for the Mitigation and Management of Human-Elephant Conflict in and around Oil-Palm Plantations in Indonesia and Malaysia

By Daniel CHONG Kah Fui and DAYANG NORWANA binti Awang Ali Bema, WWF-Malaysia, 2005

This guide aims to present ways for the mitigation and management of Human-Elephant Conflict in oil-palm plantations in Indonesia and Malaysia through the adoption of better management practices (BMPs).

Multi-stakeholder Governance: A Brief Guide

2005-03-09

Factsheets: High Conservation Value Forests - The benefits of the HCVF approach

2004-09-29

Framework for BMP Development and Documentation and BMP on Mitigation of Human Elephant Conflict (Phase 1)

2004-03-27

Where does your palm oil come from? From lipstick to ice cream: a survey of palm oil use and supply chain management.

2003-12-22

Valuing Forests on the Ground - an example from High Conservation Value Forests (HCVFs) assessment in Riau, Sumatra, Indonesia

2003-08-01