Green the Film Facts

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    Further Informations

    Theworlddemandforpalmoilisgreedy.Itisforecasttoincreasefromitspresent

    22.5milliontonsayearto40milliontonsin2020.India,China,theNetherlandsand

    Germany are the main importers of crude palm oil (CPO), the primary productderived from the palm's fruit and used for a wide range of food and non-food

    products.

    The global trade chain counts on fundsprovided by foreign financial institutions

    fromEurope,theUSandEasternAsia.

    Sumatra,Kalimantan andWest Papuaare themainareas in Indonesiawherebig

    conglomeratessuchastheSalimGroup,theWilmarGroupandtheSinarMasGroup

    operate.Thesearethesameconglomerateswhichcontrollogging,wood-processing

    andpulpandpaperindustries.

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    PALMOIL

    Indonesiaisthelargestpalmoilproducerin

    the world and plans to expand its palm oil

    plantations from the present 7 million

    hectares to20millionhectares in the years

    tocome.

    WHEREDOESPALMOILGO?

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    SELECTIVELISTOFPRODUCTSINWHICHPALMOILANDDERIVATESARECOMMONLYUSED

    Foodandbeverages

    Fryingoilinprocessedfoods

    (e.g.forchips,doughnutsandfries)Tablemargarine

    Shorteningforbakedgoods(cakes,biscuits,pastriesetc.)

    Icecream

    Saladdressing

    Peanutbutter

    Vanaspati(vegetableghee)

    Coffeewhitener

    Cosmeticsandpharmaceuticals

    LipstickSkinlotion

    Sunblock

    Shavingcream

    Bathoil

    Perfume(assolvent)

    Cleaningproducts

    Soaps

    Detergents

    Surfactants

    Industrialchemicalintermediates

    Fattyacids

    Fattyamides

    Fattyalcohol

    Glycerine

    Methylesters

    Metallicsoap

    Epoxyplasticizers

    Others

    Paint

    Candles

    Agro-fuels

    Biodiesel

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    WHOCONTROLSTHEMARKET?

    Palmplantationgroups Buyers Brands

    SinarMasGroup(GoldenAgriResources-AsiaPulpandPaper,Indonesia/Singapore)

    TheSinarMas Group, a subsidiary of the Widjaja family-owned Singapore listed Golden Agri Resources

    (GAR), is one of Indonesias biggest plantations companies and has been responsible for massive

    deforestationacrossIndonesia.InMarch2009,GARclaimedtocultivate396,000haofoilpalmplantations

    inIndonesia,makingitoneofthelargestlistedverticallyintegratedoilpalmplantationsandproducersof

    crudeandrefinedpalmproductsintheworld.GARisalsotheparentcompanyofAsiaPulpandPaper(APP),

    Indonesias biggest pulp and paper producer. The companys suppliers control an estimated 1.4 million

    hectaresofforestinIndonesia.InJanuary2007,SinarMasannouncedplanstoinvestUS$5.5billionwitha

    Chinese state-owned firm to develop oil palm-based biodiesel production, centred on Papua and

    Kalimantan.

    SINARMASGROUP(Indonesia)

    Cargill(UnitedStates)

    GardnerSmith(Australia)

    Kuok(Singapore)

    MitsubishiCorporation(Japan)

    KumpulanGuthrie(Malaysia)

    Unilever(Netherland/UnitedKingdom)

    Wilmar(Singapore)

    SalimGroupisIndonesia'sbiggestconglomeratewithassetsincludingIndofoodSuksesMakmur,theworld's

    largestinstantnoodleproducer.ThegroupwasfoundedbySudonoSalim.TheSalimGroupownsmajoroil

    palmplantationsandloggingconcessions.

    SalimGrouphasalsobeeninvolvedinPropertyDevelopmentandLeisureIndustryforaround30years.The

    businessesincludehotelandresortdevelopment,golfcourses,realestates,commercialbuildings,shopping

    centersandindustrialestates.

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    SALIM(Indonesia)

    Cargill(UnitedStates)

    GardnerSmith(Australia)

    LotteTrading

    (Singapore)

    Nabisco(UnitedStates)

    Procter&Gamble(UnitedStates)

    Unilever(Netherland/UnitedKingdom)

    SafilAclan

    (France)

    Wilmar International Limited is a Singapore-based investment holding company engaged in providing

    managementservicestoitssubsidiarycompanies.WilmarInternationalanditssubsidiariesoperatepalmoil

    plantationsandrefinerymills.Theyarealsoinvolvedinprocessingandmerchandisingarangeofedibleoils

    andlaurics-relatedproducts.

    Savola(SaudiArabia)

    Nestl(Switzerland)

    VVF(India)

    Procter&Gamble(Unitedsates)

    Unilever(Netherland/UnitedKingdom)

    WILMAR(UnitedStates/China)

    NAPAN&RISJADSONPT PP London Sumatra Indonesia Tbk. (LonSum)

    The group exportsmuch of its Crude Palm Oil (CPO) production via North Sumatra.. Napan group is focusedon energy mining and plantation sector in Indonesia. The groups pilot program includes an establishedplantation of more than 200HA, which is currently generating fuel for equipment and haulage truck.

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    NAPAN&RISJADSON

    (Indonesia)

    CadburyShweppes(UnitedKingdom)

    Wilmar(Singapore)

    Cargill(UnitedStates)

    ItoShojiCo.(Japan)

    GardnerSmith(Australia)

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    BANKSINVOLVED

    Behindthecorporatesdestroyingtherainforestarethebanksfinancingthem.

    Themajorbanksinvestingin

    IndonesianPalmoil

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    THERSPO(RoundtableforSustainablePalmOil)

    WHATISRSPO?

    TheRSPOisanassociationcreatedbyorganizationscarryingoutactivitiesinandaroundtheentire

    supplychainforpalmoiltopromotethegrowthanduseofsustainablepalmoilthroughcooperation

    withinthesupplychainandopendialoguewithitsstakeholders.TheRSPOaimstobringtogether

    membersofthecommunityworkingonpalmoiltodiscussandtocooperatetowardsthiscommon

    goal.

    (http://www.rspo.org/General_Information_on_the_RSPO.aspx)Thatistheofficialdefinition,butwhatisRSPOinfacts?Whatisithiding?Whoisinvolvedandin

    whichcontext?

    Established in 2001, the RSPO was designed to set clear ethical and ecological standards for

    producing palm oil, so no one would have their land stolen from them or have their forestsdemolished.

    Overtheyears,thelistofmembershasgrownsoitnowincludesfamiliarglobalbrandnamessuchas

    Unilever,Nestle,Tesco,andCadburysaswellas other lesswell-knowncompaniesCargill, ADM,

    DutaPalma,SinarMas,AsianAgriandotherpalmoilproducersandtraders.

    WHYANORGANISATIONWHICHREGULATESPALMOILPRODUCTIONISNEEDED?

    Basically, the industrial production of palm oil is closely tied to large-scale monocultures which

    requiretheuseoflargequantitiesofinputssuchasfertilizers,herbicidesandpesticides,withthe

    consequent impacts on the health of workers and local residents and the pollution of the

    environment.

    Palm oil production is engaged in widespread illegal deforestation and peat land clearance in

    Indonesia, practiceswhich releasevast amountsof carbondioxide into theatmosphere andhelp

    Indonesiawinthetitleoftheworldsthirdlargestgreenhousegasemitter,afterChinaandtheUS.

    THERSPOCRITERIA

    Thekeyminimum-criteriaforpartialcertification(setoutinsection4.2.4oftheRSPOCertification

    Systemsdocument)are:

    Nosignificantlandconflicts. NoreplacementofprimaryforestoranyareacontainingHighConservationValue.

    Nolabordisputesthatarenotbeingresolvedthroughanagreedprocess.

    Noevidenceofnon-compliancewithlawinanyofthenon-certifiedholdings.

    InfactstheRSPOstipulatesthatcuttingdownprimaryrainforestforconvertingthelandtopalmtree

    monoculture in NOT sustainable. It does however also stipulate that converting a secondary

    (degraded)forestforpalmtreemonocultureisconsideredasSUSTAINABLE.

    Inshort,anyprimaryforestofIndonesiacanfirstbeloggedbythewoodindustrytothenbecome

    eligibleasasustainablemonocultureofpalmtreesproducingsustainablepalmoil.

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    ItisprobablysafetosaythattheRSPOisabeautifulexampleofgreenwashing.Thestampofthe

    WWFmakesitevengreener.

    REALITYOFFACTS

    ItisobviousthatthemajorityofthemembersandaffiliatemembersoftheRSPOdonotquestionthe

    expansion of oil palm monocultures. On the contrary, they are actively seeking to boost both

    productionandconsumption.Whileitistruethatmanyaspectsoftheproductionprocesscanbe

    improved,itisequallytruethatthemodelasawhole,evenwiththeseimprovements,continuesto

    beunsustainable.

    RSPOmembercompaniesoperatinginIndonesiaareabletousetheorganizationtoburnishtheir

    greencredentialswhilesimultaneouslydestroyingrainforestswithimpunity.

    Itsmembersincludesomeverywell-knownnamesthataretypicallyassociatedwithnegativesocial

    andenvironmentalimpacts(Cargill,Unilever,Cognis,theInternationalFinanceCorporation,British

    Petroleum,SyngentaandBayer).

    Membersdonotrespecttheircommitments

    MembershipoftheRSPOaloneisnotsufficientproofofacompanysenvironmentalcredentials.

    Currently the RSPO criteria only include vague guidelines on avoiding establishment palm oil

    plantations on peat lands. There are also no criteria on greenhouse gas emissions during the

    productionofpalmoil.

    Moreover,whileasupplyofsustainablepalmoil(CSPO)existsandisavailable,only10ofthe59

    membercompaniesoftheRSPOactuallypurchaseitanduseit.

    TheexempleofSinarMas,activeRSPOmember

    In2008,SinarMasbrandeditselfasIndonesiaslargestoilpalmplantationcompany.

    In December 2009 Unilever, the worlds largest palm oil user, announced the suspension of its

    contracts with Sinar Mas in light of the evidence of greenwashing. However, major brands

    includingNestle,Kraft,andProcterandGamblecontinuetobuySinarMaspalmoil.

    Soifwithinthepalmoilindustrytheresawarenessofthepotentialdamagetheycouldcausetoboth

    peopleandtheenvironment,whyarewestillfindingevidenceofwholesaleforestdestruction?

    WestillcanfoundbulldozersbelongingtoSinarMasclearinghugetractsnearJayapurainPapua,and

    yetSinarMasisanRSPOmember.Theresobviouslysomethingwrongsomewhere.

    NorestrictionsorpenaltyfromRSPO

    Asitcurrentlyexists,itsstandardsandprinciplesaretooweaktoreallydoanygood.ThemaincauseofthisissueisthattheresnodangerofactuallybeingpenalizedinanywaybytheRSPO.

    WhatkindofcredibilitydoestheRSPOhaveifitturnsablindeyewhenitsmembersareclearing

    hugeareasofforestordrainingandburningpeatlands?

    FutureScenariofortheRSPO

    IftheRSPOreallywantstobetakenseriouslyonsustainability,thenitmusttakeimmediatestepsto

    prohibititsmembersfromconvertinganymoreforestandpeatlandintoplantations.

    WithoutsuchamovetherecanbenosustainablepalmoilproductioninSouthEastAsia;ratherthe

    RSPOwill be creating an illusion of sustainability while pursuing the expansion of plantations to

    supplythedemandcreatedbythecountriessettingmandatorytargetsonbio-fuels.

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    PROPOSITIONS

    Realityonthefieldshowsthatsomethingdrasticneedstobedone,likeanimmediatemoratorium

    onalldeforestationinIndonesiawhiletheresstillsomeforestworthsaving.

    THEMORATORIUMWOULD

    Provide the political space for the establishment ofmechanisms to permanently protectimportantforestandpeatlandareas.

    Encourageproducers toprioritiesallexpansionofpalmoilplantationson nonforestareas

    anderodedlands.

    Thiscallforamoratoriumissupportedbymajorpalmoilusers,likeUnileverandothercompanies.

    Hopefully, these large influencial corporates can push the RSPO to support the moratorium and

    pressure the Indonesian government to take urgent action. The Indonesian president, Susilo

    BambangYudhoyono,istheonlyonewhocanputthismoratoriuminaction.

    THERSPOMUST: Takeconcrete action to stop deforestation andpeat landconversion for sustainable oil

    palmexpansion.

    Ensurethatitsmemberspreventlanddisputes,andproactivelyresolvecurrentconflicts.

    Mustgiveitselfthemeanstopunishmemberswhodonotfollowtheguidelines.

    THEEUROPEANGOVERNMENTSMUST:

    Supportthecallforamoratoriumonfurtherdeforestationandpeatlandsclearance.

    Allocatefundstoprotectforestsandpeatlands.

    Refrain from policies that stimulate the expansion of the palm oil industry, like the

    mandatorytargetforbio-fuels,andsubsidiesforpalmoilinelectricityproduction.

    PALMOILCONSUMERSMUST:

    Stopconsumingpalmoilasmuchaspossible.

    Demand that the brands using palm oil support a moratorium on forest and peat land

    clearance

    Demand that thebrandsusingpalmoilimmediately cancelcontractswith anydestructive

    companylikeSinarMas.

    PALMOILPRODUCERSMUST:

    Implementanimmediatemoratoriumonforestandpeatlandclearance.

    Useonlywastelandtoexpandfurthertheirplantations.

    INVESTORSWHOFINANCIALLYSUPPORTTHEPALMOILSECTORMUST:

    Stopallfinancingofpalmoilcompaniesuntiltheyimplementamoratoriumonfurtherforest

    clearance.

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    Therefore,whatis most importantnow is to intensify these struggles andcampaigns to curb the

    advanceofthisdestructiveindustry.Weneedswiftactiontobringdeforestationtoanend.