FFC, as part of a coalition of investors representing nearly $270 billion in assets under management, supports palm oil that can be traced to growers not engaged in deforestation, peatland development,
and/or human rights violations. In the coming weeks, major palm oil producers, traders, consumers and financiers will be convening to build support for emerging standards that go above and beyond current Roundtable on Sustainable Palm Oil (RSPO) standards. FFC supports these efforts, and urges companies at all levels in the industry to mitigate the serious environmental, social and business risks associated with current palm oil development practices. The most widely used vegetable oil in the world, palm oil is mostly produced in Indonesia and Malaysia. Its production is the leading driver for deforestation in both countries, threatening diverse rainforest ecosystems that are host to many endangered species, including the Orangutan. Conversion of peat (stored carbon) swamp forest into oil palm tree plantations is also greenhouse-gas-intensive. Furthermore, the palm oil industry is listed as one of the most notorious for using child and forced labor, according to the U.S. Department of Labor. Increasing media attention and consumer awareness concerning palm oil is reflected by 20 major snack and food companies currently being publicly targeted in NGO-led campaigns that link their brands to tropical deforestation. Recently, a Bloomberg Businessweek exposé detailed evidence of slavery on plantations that sell palm oil to some of the worlds largest brands. FFC urges companies at all levels of their supply chains to champion the emerging standards for palm oil production. Supporting greater social and environmental responsibility is a practice that can also sustain and boost brand reputation. To view the letter sent to producers, click here To view the letter sent to financiers, click here To view the letter sent to consumer-facing brands, click here
