The PRI-coordinated Investor Working Group on Sustainable Palm Oil has, since 2011, been:
- raising investor awareness of the ESG issues within the palm oil value chain;
- providing a unified investor voice in support of sustainable palm oil;
- engaging with companies across the value chain in support of more sustainable practices.
Initially engaging major buyers of palm oil and retailers of palm oil-based products, in 2013 the group shifted attention to engaging the major palm oil growers, processors and traders, and more recently the ASEAN banks that are key lenders to the industry.
The group comprises more than 50 PRI signatories.
Palm oil: What’s the issue?
Palm oil is widely used due to boasting several benefits over other vegetable oils, 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.
Investor expectations statement
More than 50 investment organisations with approximately US$8 trillion in assets under management have endorsed a statement laying out their expectations of companies operating across the palm oil value chain and highlighting their continued support for a sustainable palm oil industry.
To find out more this working group and how your organisation could be involved, please contact us.
- PDF, Size 1.02 mb