Palm oil is an edible vegetable oil derived from the mesocarp of the fruit of the oil palms. The oil is used in food manufacturing, in beauty products, and as biofuel. Palm oil accounted for about 36% of global oils produced from oil crops in 2014. Palm oils are easier to stabilize and maintain quality of flavor and consistency in ultra-processed foods, so are frequently favored by food manufacturers. On average globally, humans consumed 7.7 kg (17 lb) of palm oil per person in 2015. Demand has also increased for other uses, such as cosmetics and biofuels, creating more demand on the supply encouraging the growth of palm oil plantations in tropical countries.
Biodiesel is a renewable biofuel, a form of diesel fuel, derived from biological sources like vegetable oils, animal fats, or recycled greases, and consisting of long-chain fatty acid esters. It is typically made from fats.
Sinar Mas is one of the largest conglomerates in Indonesia. It was formed in 1938. It has numerous subsidiaries including Asia Pulp & Paper and palm oil producer PT SMART. The company also acquired Berau Coal Energy from Asia Resource Minerals PLC, a major mining group founded by Nathaniel Rothschild, in a takeover initiated by Fuganto Widjaja.
A smallholding or smallholder is a small farm operating under a small-scale agriculture model. Definitions vary widely for what constitutes a smallholder or small-scale farm, including factors such as size, food production technique or technology, involvement of family in labor and economic impact. Smallholdings are usually farms supporting a single family with a mixture of cash crops and subsistence farming. As a country becomes more affluent, smallholdings may not be self-sufficient, but may be valued for the rural lifestyle. As the sustainable food and local food movements grow in affluent countries, some of these smallholdings are gaining increased economic viability. There are an estimated 500 million smallholder farms in developing countries of the world alone, supporting almost two billion people.
Neste MY Renewable Diesel is a vegetable oil refining fuel production process commercialized by the Finnish oil and refining company Neste. Whether as an admixture or in its pure form, Neste MY Renewable Diesel is able to supplement or partially replace diesel fuel without problems. Neste MY Renewable Diesel guarantees that every gallon sold meets ASTM D975 and EN 15940 specifications in compliance with OEM standards.
The Environmental Investigation Agency (EIA) is an international NGO founded in 1984 in the United Kingdom by environmental activists Dave Currey, Jennifer Lonsdale and Allan Thornton. At present, it has offices in London and Washington, D.C. The EIA covertly investigates and campaigns against environmental crime and abuse.
Olam International is an agri-business company, operating in 60 countries and supplying food and industrial raw materials to over 20,900 customers worldwide, placing them among the world's largest suppliers of cocoa beans, coffee, cotton and rice. Its value chain includes farming, origination, processing and distribution operations, child labor, and allegedly even child slavery.
The Environmental Justice Foundation (EJF) is a non-governmental organisation (NGO) founded in 2000 by Steve Trent and Juliette Williams that works to secure a world where natural habitats and environments can sustain, and be sustained by, the communities that depend upon them for their basic needs and livelihoods. It promotes global environmental justice, which it defines as “equal access to a secure and healthy environment for all, in a world where wildlife can thrive alongside humanity.”
The Amazon rainforest, spanning an area of 3,000,000 km2, is the world's largest rainforest. It encompasses the largest and most biodiverse tropical rainforest on the planet, representing over half of all rainforests. The Amazon region includes the territories of nine nations, with Brazil containing the majority (60%), followed by Peru (13%), Colombia (10%), and smaller portions in Venezuela, Ecuador, Bolivia, Guyana, Suriname, and French Guiana.
Greenpeace USA is the United States affiliate of Greenpeace International, an environmental nonprofit organization that spawned a social movement inspired by direct actions on the high seas to stop whaling and nuclear testing. Headquartered in Washington D.C., Greenpeace U.S.A. operates with an annual budget of approximately $40 million, employing over 500 people in 2020. The organization relies on donations from members, refuses corporate contributions and refrains from endorsing political candidates, though in 2020 Greenpeace USA issued climate scorecards for presidential candidates and ranked them from best to worst on climate
Palm oil, produced from the oil palm, is a basic source of income for many farmers in South East Asia, Central and West Africa, and Central America. It is locally used as cooking oil, exported for use in much commercial food and personal care products and is converted into biofuel. It produces up to 10 times more oil per unit area than soybeans, rapeseed or sunflowers.
Wilmar International Limited is a Singaporean food processing and investment holding company with more than 300 subsidiary companies. Founded in 1991, it is one of Asia's leading agribusiness groups alongside the COFCO Group. It ranks amongst the largest listed companies by market capitalisation on the Singapore Exchange (SGX), being the second largest as of September 2010. It was ranked 211th in the Fortune Global 500 list in 2020. It was ranked 3rd in the World's Most Admired Company by Fortune in 2019.
The Roundtable on Sustainable Palm Oil (RSPO) was established in 2004 with the objective of promoting the growth and use of sustainable palm oil products through global standards and multistakeholder governance. The seat of the association is in Zürich, Switzerland, while the secretariat is currently based in Kuala Lumpur, with a satellite office in Jakarta. RSPO currently has 5,650 members from 94 countries.
Royal Golden Eagle is a global integrated, resource-based industrial group, with businesses in paper, palm oil, viscose, construction and energy, property and asset management. Owned by Indonesian businessman Sukanto Tanoto, the group employs 60,000 people worldwide with assets exceeding US$30 billion.
POSCO International Corporation (포스코인터내셔널) is South Korea's largest trading company and a subsidiary of POSCO.
Palm oil production is important to the economy of Indonesia as the country is the world's biggest producer and consumer of the commodity, providing about half of the world's supply. In 2016, Indonesia produced over 34.6 million metric tons of palm oil, and exported 25.1 million metric tons of it. Oil palm plantations stretch across at least 12 million hectares. There are several different types of plantations, including small, privately owned plantations, and larger, state-owned plantations. There are a variety of health, environmental, and societal impacts that result from the production of palm oil in Indonesia. A recent publication by the NGO Rainforest Action Network (RAN) indicates that the use of palm oil by some of the biggest chocolate and snacks' producers is increasing this problem.
Musim Mas Group operates globally in the palm oil industry, with a presence in 13 countries spanning Asia-Pacific, Europe, North America, and South America. The group owns a significant network of palm oil refineries and is involved in vegetable oil refining. Additionally, it manufactures consumer goods such as soap and cooking oil brands in Indonesia. With a workforce of 37,000 employees, Musim Mas is supported by an extensive logistics network consisting of chemical and coastal tankers, barges, tugboats, and bulk installations at major ports in Indonesia and other strategic locations worldwide.
Asian Agri is one of Asia's largest palm oil producers, with an annual production of 1 million tons of palm oil.
There are three species of orangutan. The Bornean orangutan, the most common, can be found in Kalimantan, Indonesia and Sarawak and Sabah in Malaysia. The Sumatran orangutan and the Tapanuli orangutan are both only found in Sumatra, Indonesia. The conservation status of all three of these species is critically endangered, according to the International Union for Conservation of Nature (IUCN) Red List.
Natural risks or nature risks are risks recognized in risk management that are related to the loss of natural assets. They may impact businesses or economies by impacting directly on operations or by negatively affecting society in a way that then creates market risks. The loss of nature can also contribute to systemic geopolitical risk because nature's assets and services, such as clean air, plentiful fresh water, fertile soils, a stable climate, provide vital public goods on which human societies rely for their functioning. An example is tropical deforestation. It is a key source of nature risk for sectors that either have an impact or dependency on tropical forests.
