A group of over 50 signatories coordinated by the PRI, formed an investor working group (IWG) on sustainable palm oil, which aimed to raise awareness of these issues among investors, provide a unified investor voice in support of sustainable palm oil and the Roundtable on Sustainable Palm Oil (RSPO), and engage with companies in support of more sustainable practices.
The PRI investor working group on sustainable palm oil was formed in 2011, the following aims:
- To raise awareness amongst investors of the ESG issues that arise within the palm oil value chain, including deforestation, land and labour rights issues, and climate risks.
- To provide a unified investor voice in support of sustainable palm oil.
- To engage with companies across the value chain in support of more sustainable practices and to promote a sustainable industry, in addition to improving companies’ disclosure and management of the ESG risks associated with the industry.
Why investors should care
Palm oil is the most widely used vegetable oil and boasts a number of advantages compared to its substitutes, including versatility, low cost and high yield. It has contributed significantly to economic development in a number of countries, in particular Indonesia and Malaysia, which together produce over 85% of the world’s crude palm oil. However, the development of palm oil plantations has been linked to significant negative social and environmental impacts that pose risks to investors, including widespread deforestation, increased greenhouse gas emissions, social conflicts and damage to ecosystem services.
Legal & General Investment Management (Holdings)
LionTrust Investment Partners
Local Government Superannuation Scheme
Manulife Investment Management
New York State Common Retirement Fund
New Zealand Superannuation Fund
Nikko Asset Management
NN Investment Partners
PIRC Limited (on behalf of LAPFF)
QBE Insurance Group Limited
Resona Asset Management
Skandinaviska Enskilda Banken (SEB) AB
Storebrand Asset Management
Sumitomo Mitsui Trust Asset Management
Trillium Asset Management
Triodos Investment Management B.V.
Union Asset Management Holding AG
Value Square NV
Wells Capital Management
Engagement focus companies