Wilmar, Asian company controlling 45 percent of global palm oil trade announces policy to end deforestation
Market transformation
Wilmar announced a forest policy that commits them to an immediate end to deforestation, conversion of carbon-rich peatland and forests, and abuse of human rights and local communities. We are gratified that the policy has been celebrated by NGOs and civil society involved in this work as setting a new standard in protecting forests and transforming large scale commodity supply chains.
What is truly exciting is that the policy applies not just to Wilmar’s own operations, but to its suppliers and subsidiaries as well. As Wilmar controls 45 percent of global palm oil trade, and approximately 80 percent of palm oil company supplyWilmar, this policy has the potential to transform the entire industry. In addition, while the immediate priority for implementation is palm oil, the policy applies to all other commodities Wilmar is involved in as well, including sugar and soy, creating potential for transformation in those sectors as well – Wilmar is the biggest trader of those commodities with China.
What it means
This agreement is good news for Sumatran tigers, orangutangs, elephants, rhinos and all the other creatures and peoples that rely on forests for their homes. And it is a significant climate victory, perhaps the biggest of the year: palm oil is the main driver of deforestation and associated climate pollution in Southeast Asia, and is rapidly expanding to Africa and South America as well; deforestation for palm oil is so bad that it has made Indonesia the world’s third biggest climate polluter, behind only China and the USA. Our conservative estimate is that, if implemented, this agreement will reduce climate pollution by a minimum of 1.5 gigatons by 2020, equivalent to approximate annual emissions from the entire US transportation sector.
More details, stories and pictures from the campaign are available at www.forestheroes.org