Can palm oil move past its bad reputation?

02 Mar 2014
A new report explores innovative steps being taken by several of the industry’s largest firms to improve social and environmental practices, Mongabay.com reported.  
 
Indonesia’s palm oil industry has gained a notorious reputation in recent years. Palm oil companies are routinely accused of clearing primary forests, destroying the habitats of endangered species, releasing massive amounts of carbon by draining peat swamps and fueling land conflicts with local communities.
 
In the face of this widespread criticism, some palm oil companies are exploring ways to clean up their operations by implementing innovative programs to minimize harm to the environment and ensure local communities benefit from palm oil investments, according to a new study.
 
In a report released last month, Daemeter Consulting explored six programs being carried out by some of the biggest players in Indonesia’s palm oil industry – Asian Agri, Astra Agro Lestari, Musim Mas, Cargill, PT Rea and Wilmar.
 
The programs featured in the report, which was funded by the Climate and Land Use Alliance, address some of the most serious criticisms leveled against the industry.
 
Some are designed to reduce pollution and carbon emissions, while others help support local communities, increase yields or protect key habitats that house some of Indonesia’s most threatened species.
 
And, according to the report, they show that improving practices in the palm oil industry is not only possible, but in some cases can help increase profits by giving companies access to buyers demanding sustainably-produced products.
 
“Sustainability is increasingly seen by industry as a source of innovation and growth rather than simply risk management,” Gary Paoli, the lead author of the 73-page report, Best Management Practices in the Indonesian Palm Oil Industry, said in a statement accompanying the report’s release on Feb. 12.
 
“These trends should be rewarded and strengthened,” Paoli added.
 
For the complete article, see here. For Daemeter's report Best Management Practices in the Indonesian Palm Oil Industry: Case Studies, see here.