Analysis by WWF experts found that two of the world’s largest palm oil companies—Asian Agri and Wilmar—purchased palm oil fruit that was illegally grown within the boundaries of the Tesso Nilo Forest Complex, an area that includes Tesso Nilo National Park and surrounding forest concessions where it is illegal to plant palm oil.
A rapidly growing global population, accelerating consumption, dietary shifts, climate change and other factors are driving unprecedented price volatility, resource shortages, and other risks in soft commodity supply chains. These challenges pose material, reputational, and systemic risk to investors.WWF seeks to untangle this complexity. Providing distilled guidance based on leading industry practice, The 2050 Criteria is designed to serve as a field guide for investors to access mainstream agricultural, forest, and seafood commodities in a responsible manner.
A first-of-its-kind study for both the palm oil industry and agricultural commodities in general, Profitability and Sustainability in Palm Oil Production comprehensively examines the financial costs and benefits of adopting certification. The report was produced jointly by WWF, CDC, the UK’s development finance institution, and FMO, the Dutch development bank.
Analysis by WWF of palm oil production in Kalimantan, Indonesia, found that by pursuing a strategy of yield intensification and planting on degraded lands, the palm oil industry would effectively be able to tackle financial hurdles, minimize impact on biodiversity, and meet climate change criteria in terms of carbon payback without further deforestation.