World Economic Forum Promoting New Avenues
Palm oil is the fastest-growing commodity on the planet. Sales are expected to exceed $88 billion by 2022. Unfortunately, the industry and its supporters are still blowing smoke about deforestation, biodiversity and climate change. There’s a better way forward and we can help make it a reality.
Palm oil is one of the most controversial commodities. It’s driving deforestation on a massive scale across Southeast Asia, South America and Africa. Deforestation is a major contributor to global warming, land-use change and wildlife extinction.
Indonesia is the world’s largest producer of crude palm oil. Approximately 45 million acres of land in Indonesia has been licensed for palm oil development. Unfortunately, licenses mean very little in the land of smoke and mirrors. Even protected areas, such as the Leuser National Park, are under siege. RSPO members aren’t defending biodiversity or the forests. They only protect themselves from the truth.
Palm oil is derived from the fruit harvested from date palm trees. Presently, more than 95 percent of palm oil is produced in Indonesia and Malaysia. It is marketed as a low-cost form of vegetable oil. It’s used in the majority of consumer goods, including food and personal products, such as lotion and soaps. It’s also marketed as a biofuel. Multinational corporations, including Unilever, PepsiCo, Kellogg’s, Ferrero and many others are under fire from customers and stockholders for supporting deforestation. These companies and the palm oil industry have gone to great lengths for years to cover their tracks and green wash their supply chain with claims of so-called sustainable palm oil. There is no such thing as sustainable palm oil. It’s no more sustainable than crude oil or coal.
The Roundtable On Sustainable Palm Oil (RSPO) was set up in 2004 following a series of meetings between WWF and palm oil companies. According to WWF, “One of the huge successes of the Roundtable is the development of a certification system for sustainable palm oil.” Unfortunately, that certification system was riddled with fraud and abuse. It’s a label bought not earned.
In 2015, a report by the Environmental Investigation Agency and Grassroots exposed serious problems in the RSPO certification system. Auditing firms that are supposed to monitor palm oil companies’ operations are colluding with the companies to hide violations.
The latest trend is called Certified Sustainable Palm Oil (CSPO). Call it what you will—palm oil plantations and biodiversity do not mix. Animals that enter palm oil plantations are killed. In many cases, bounties have been put on endangered orangutans, elephants and Sumatran tigers. Indonesia has already pushed two tiger species into extinction. The Sumatran tiger could easily follow the Java tiger and Bali tiger into the history books thanks to an industry with no reverence or conscience.
In 2013, Greenpeace produced a report titled “Certifying Destruction,” which highlighted some of the tactics being used to shield the truth about this massive industry. A similar report came out again in 2015 by EIA. In a similar vein, PepsiCo recently released a report in an attempt to cover its tracks. Rainforest Action Network pounced on the report this week as another attempt to cover up the blood in its supply chain.
A report released by Rainforest Action Network (RAN) in April 2017, titled “Profits over People and the Planet, Not ‘Performance with Purpose’; Exposing PepsiCo’s Real Agenda,” revealed PepsiCo’s connections to Conflict Palm Oil suppliers, which are driving deforestation, climate emissions, and human and labor rights abuses across Indonesia, Malaysia, and Latin America. Today’s release by PepsiCo lacks a meaningful response to the issues raised in RAN’s report.
“PepsiCo’s latest “Palm Oil Action Plan Progress Report” is a masterful attempt to window dress its lack of progress in addressing the systemic environmental and human rights violations in its palm oil supply chain and in the operations of its joint venture partner Indofood. In the real world, forests continue to fall and workers continue to be exploited for the production of palm oil used in PepsiCo’s products.
“While PepsiCo openly acknowledges in its report that deforestation and labor rights violations are rampant in the palm oil industry, the company has once again failed to set a deadline to end these abuses in its own supply chains,” said Robin Averbeck, Senior Campaigner of RAN. “Instead, PepsiCo hides behind false claims of sustainability made by the RSPO––the same certification system that has continued to certify its controversial partner Indofood, despite its ongoing exploitation of workers exposed by RAN, Indonesian labor rights organization OPPUK, and International Labor Rights Forum in June 2016.”
“PepsiCo needs to stop the corporate green wash and start enforcing an end to rainforest destruction and the violation of workers and communities’ rights in its supply chain and the plantations controlled by its partner Indofood. Until it does so, PepsiCo and its financial backers will be exposed to campaigns that demand real outcomes on the ground.”
The palm oil industry and its pimps throughout the supply chain, including the RSPO, continue throwing misinformation into the market to placate investors, wholesale buyers and consumers of products that contain palm oil. Meanwhile, RSPO members continue to rape and pillage virgin rain forests and peat lands as they produce more than half of global palm oil supplies.
European nations are threatening to ban palm oil as a “renewable biofuel” in an attempt to reduce demand and force meaningful changes in the palm oil industry. Indonesia and Malaysia are digging in to keep palm oil production and consumption at an all-time high. The industry accounts for billions of dollars per year for the countries’ tycoons and cronies.
As all of this fraud indicates, the palm oil industry and palm oil buyers are desperately seeking solutions, while deforestation and its contribution to wildlife extinction continue. According to a report from the World Economic Forum, the push to get commodity producers, including beef and soy, out of the world’s last rain forests represents a multi-billion dollar opportunity. The good news is that an alternative production model exists that isn’t dependent on rain forest destruction. Cities around the world in the tropics, subtropics and deserts represent a powerful opportunity to expand the footprint of palm oil production, while promoting urban agroforestry, sustainability, resiliency and economic development. It can also cut shipping costs by decentralizing the production so that it’s closer to the buyers, such as PepsiCo and others. It’s a win-win opportunity for all stakeholders and stockholders. We need a leader to step forward to demonstrate the benefits of urban agroforestry. It’s a deforestation-free production model that offers valuable benefits.
This initiative will make cities more productive, livable, sustainable and resilient. Some of the new palm trees can help combat the urban heat island effect on our streets and highways. Others can reduce energy demands by sheltering homes, schools and office buildings. Strategically placed trees also can shade parks, golf courses, parks, school grounds and rooftops, while absorbing and sequestering tons of carbon dioxide. Farms and ranches will have an incentive to line their fence lines with a new cash crop. Most importantly, we can create jobs, educational opportunities and sustainable palm oil worth millions of dollars every year just by being resourceful and innovative.