World Bank, non-profits make nice with palm oil

Becca Madsen on March 14, 2011 Comment

The World Bank is set to release a strategy for lifting its ban of palm oil investments in March of 2011 to a limited set of projects that protect high conservation value forests and provide profit-sharing with local communities. BusinessGreen provides background on the big-picture issues surrounding palm oil development, including deforestation and greenhouse gas emissions, the Roundtable on Sustainable Palm Oil (RSPO) and advances in sustainability, criticisms of this voluntary RSPO standards approach, and consumer demand for sustainably-sourced palm oil.

Meanwhile, MongaBay profiles a new agreement between the #2 palm oil producer in the world (Golden Agri-Resources Limited, or GAR) and The Forest Trust (a non-profit focused on greening company supply chains). GAR is in need of a serious reputation make-over. One of the companies it owns - Sinar Mas Agro Resources and Technology - has been the target of negative campaigns by non-profits and as a result lost major customers like Unilever, Kraft, Nestle, Burger King, and General Mills.

In the agreement with The Forest Trust, "GAR will establish a forest conservation policy that bans development of peatlands and high carbon stock and high conservation value (HCV) forests. The policy also includes social safeguards including free, prior and informed consent (FPIC) for indigenous and local communities as well as compliance with Indonesian laws and RSPO Principles and Criteria. The policy will apply for all plantations GAR owns, manages, or invests in."