Indonesia, the largest producer and exporter of palm oil in the world, is facing one of the worst haze crises in over a decade due to burning forests to clear land for palm oil, and is consequently on track to be one of the top carbon polluters this year. This after major strides in recent years toward ending deforestation, including commitments and policies by many of the top Indonesian palm oil suppliers. 
For years Friends Fiduciary has joined efforts and campaigns to raise awareness about palm oil production sustainability risks which threaten shareholder value. The detrimental environmental impact of unsustainable palm oil production, we believe, puts the industry’s social license to operate and would access at potential risk. Past campaigns led to improvements in every stage of the supply chain from palm oil suppliers to end users. However, there remain groups, even within the Indonesian government, that oppose industry efforts to curb deforestation. So FFC joined other investors to urge Indonesia’s President, Joko Widodo, to adopt regulatory reforms that support forest conservation and haze prevention, to protect their forests and peatlands, and to improve Indonesians’ health and environment. Further, as investors, we asked the administration to support companies that contribute to economic well-being without further degrading local communities or the environment, and expressed our commitment to invest in companies and countries that are actively addressing sustainability risks facing our global economy.
