PALM OIL

ANSWER NO 1

Green peace has targeted unilevers dirty palm oil. According to Green peace the
refinery processes palm oil from suppliers that are reportedly destroying
rainforest in Kalimantan and papua, Indonesia. The environmental NGO claims
that unilever the owner of Dove and Tony& Guy is purchasing un ethical oil from
one of the world’s largest oil palm plantation owners Wilmar International. Yes, it
will effect other companies who have supported IPOP.

ANSWER NO 2

A moratorium policy that bans the clearing of primary forests and peatlands has
also proven effective achieving a 45% drop in deforestation inside moratorium
area in 2018 compared to 2002-2016. The government plans to make the
moratorium permanent later this year.

The government estimates that thousands of communities are involved in active

or latent conflicts with companies. The Indonesian sustainable palm oil (ISPO)
system is a policy adopted by the ministry of agriculture on behalf of the
Indonesian government.

The aim is to improve the competitiveness of the Indonesian palm oil in the global
market and to reduce green house gases emission and draw attention to
environmental issues.
SUMMARY:
The four largest palm oil trading companies signed an agreement to end
deforestation, for environmental NGOs, the Indonesian Palm Oil Pledge
represented a dramatic advance in their decades-long efforts to protect the
Indonesian rainforest from further destruction. One year later the situation
appeared to have reversed. Crude palm oil (CPO) became the most highly traded
edible oil. The palm oil boom had significant impact on economic development in
rural Indonesia On the demand side, hundreds of thousands of companies across
the globe bought palm oil or palm oil fractions to include in a wide variety of
products. Between supply and demand, however, six companies: Wilmar, Musim
Mas, Golden Agri, Cargill, IOI, and Bunge accounted for over 90% of the global
trade. If they could be convinced to “green” not only their own operations but also
that of their suppliers, perhaps the problems in the palm oil industry could be
resolved.

So when Indonesian Palm Oil Pledge (IPOP) brought together the major traders to
endorse a strong NDPE (no deforestation, no peat, no exploitation) standard, many
environmentalists believed that the agreement represented a breakthrough. For the
companies that signed IPOP, criticism of the pledge pressured them to reassess
their plans. Wilmar, in particular, faced difficult choices. The company was the
largest trader of palm oil in the world, selling in Europe, China, and India. The
pledge and the government’s reaction to it had created two sets of challenges for
the company. First Wilmar had to find a way to police its supply chain, identifying
violators and determining ways of dealing with them, especially in the face of
continued NGO pressure. Secondly, some groups had indicated that they might try
to bypass Wilmar and sell their CPO directly to China and India; countries which
had shown no interest in sustainable palm oil.