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8/8/2019 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.