1. How ’s UsE oF PALM oIL Is HAVING
FoREsT,
A DEVAsTATING IMPACT oN RAIN
TH E CLIMATE AND oRANG-UTANs
www.greenpeace.org
2. plantations, near
ction for oil palm
Rainforest destru esia, 24 July 2009
langkaraya, Indon
Kwala Kwayan, Pa
3. rum
au Senta
near Dan
r palm oil,
forest fo 2009
clears rain , February
Sinar Mas st Ka limantan
Park, We
National ns
cleared for oil palm plantatio
Indonesian forest is
IndonesIan forests sInar Mas
Indonesia currently has the fastest The Sinar Mas group is Indonesia’s largest the vast majority of this expansion will
deforestation rate of any major forested producer of palm oil8 and pulp and paper.9 involve deforestation, some on protected
country in the world.1 For losing 2% of In the palm oil sector, the group’s empire carbon rich peatlands and in critical
its remaining forest every year, Indonesia already includes 406,000 hectares of orang‑utan habitat. In the face of Sinar nestLé beverage
now has a place in the Guinness Book of established oil palm plantations10 and the Mas’ unacceptable environmental and social Nestlé is the largest food and
World Records.2 The destruction of its company claims to have ‘the largest land practices,13 Unilever cancelled its $30 million 17 selling over a billion
company in the world,
tropical forests for palm oil and pulp and bank in the world… with 1.3 million hectares contract with the company at the end of a major buyer of
products every day. It is
18
paper industries is an ecological disaster [of] land available for expansion…’ This ‘land 2009, while Kraft cancelled its contract in g. According to
palm oil and its use is growin
and a leading contributor to Indonesia’s bank’ is in the heavily forested provinces of early 2010. Sainsbury’s and Shell have also m oil has almost
Nestlé, its annual use of pal
greenhouse gas emissions, making the Papua and in Kalimantan.11 stated that they will not buy palm oil from rs with 320,000
doubled in the last three yea
country the third largest greenhouse gas Sinar Mas. of well‑known
tonnes19 going into a range 20 Globally, KitKat
emitter in the world after China and the products including KitKat.
USA.3 Over the last half century, over The group’s terrible environmental track is produced on a massive scale. Every five
manufactured
74 million hectares of Indonesia’s forests – record on pulp and paper is also well minutes, enough KitKats are 21
an area more than twice the size of documented14 and has led to a number er. Despite Sinar
to out stack the Eiffel Tow
singly dirty
Germany4 – have been logged, burned of companies refusing to do business Mas’ track record and increa
or otherwise degraded.5 with its subsidiary, Asia Pulp and Paper reputation, Nestlé has no policies in place to
The Sinar Mas group, according to one (APP).15 APP is Indonesia’s largest pulp and up and continues
avoid dealings with the gro
funder, the French bank BNP Paribas, paper producer and continues to expand Mas.
to buy palm oil from Sinar
is involved in ‘the most aggressive new plantations into forest areas. Its current
planting programme among the plantation expansion plans threaten the site of
PaLM oIL r palm oil is rocketing; companies.’12 Judging by the company’s Indonesia’s only successful orang‑utan
Global demand fo past operations and the location of its re‑introduction site, located in Sumatra.16
the vegetable oil of
it is fast becoming food known land banks within forested areas,
e manufacturing of
choice to use in th rrent
for biofuels. On cu
and cosmetics and ed to
r palm oil is predict
trends, demand fo by
by 2030 and triple
more than double
EP re port identified oil
2050. A 2007 UN
6
ding cause of
palm pla ntations as the lea
tion in Malaysia
rainforest destruc
7
and Indonesia.
4. CoMMunItIes
Social conflict, including land rights and
resource disputes, is often caused by
plantation expansion.22 ‘There are more
than 500 social conflicts in the Indonesian
oil palm sector, mainly over lands, labour
disputes, disharmony of corporate
community partnerships, criminalisation of
villagers, and high profile political scandals
involving illegal issuance of permits for
natural forest conversion and for oil palm
concessions within protected areas and
national parks’.23
orang-utans
Orang‑utans are only found in the rapidly forests
the CLIMate
disappearing tropical rainforests of Borneo The Earth’s forests are home to around two
and Sumatra.24 Clearing forests to make thirds of all plant and animal species found rld’s forests
way for plantations is one of the main on land.30 They form some of the most The destruction of the wo
of climate
causes of the steep decline in orang‑utan diverse ecosystems in the world and are is one of the main causes
human energy
numbers in recent years.25 Recent estimates vitally important to the health of the planet. change, second only to
to 1.8 billion
suggest there are between 45,000 and While species new to science are still being demands. Every year, up
ng greenhouse gas
69,000 Bornean and no more than 7,300 discovered, many more well known species, tonnes of climate changi
the degradation
Sumatran orang‑utans left in the wild.26 including orang‑utans, Javan rhinos and emissions are released by
s peatlands
31
The UN Environment Programme (UNEP) Sumatran tigers are at risk of extinction and burning of Indonesia’
bal greenhouse
classes the Bornean orang‑utan as due to loss of their natural habitat. – that is up to 4% of glo
32 from less than 0.1% of the
Endangered, meaning that it faces a very gas emissions
is illegal under
land on earth. Whilst it
33
high risk of extinction in the wild in the t peatland over
near future. The Sumatran orang‑utan is Indonesian law to conver
plantations or
34
classified as Critically Endangered, putting three metres deep into 35
plantation
it at extremely high risk of extinction.27 to use fires to clear land,
both these
companies regularly use
36
As orang‑utans lose their forests practices.
to palm oil plantations,
they are deprived of their
natural source of food
and are forced to fight for
survival by eating young
palm plants. These hungry
orang‑utans can become
seen as ‘pests’ to oil palm
producers, and plantation
workers kill orang‑utans
to protect the crop.28
According to the Centre for
Orang‑utan Protection, at
least 1,500 orang‑utans
died in 2006 as a result
of deliberate attacks by
plantation workers and
loss of habitat due to the
expansion of oil palm
plantations.29
5. drIvIng orang-utans 2008. Occurrence of orang-utans has also forest area.40 This expansion into orang‑utan
to extInCtIon been confirmed by Runtu Lama villagers habitat demonstrates that Sinar Mas’
In 2008, Greenpeace researchers overlaid and the management of the concession indifference to acceptable environmental
maps showing the distribution of orang‑utan holder north of PT SKU who reported that standards is as strong as ever.
habitats in Kalimantan with maps locating orang-utans occasionally move through the
the position of oil palm concessions owned forests in its concession. However much of
by Nestlé’s supplier Sinar Mas. This revealed the forest in the northern part of PT SKU threatenIng
that Sinar Mas concessions not only has now been deforested.’38 LIveLIhoods
overlapped with orang‑utan habitat but Over the last few decades Sinar Mas’ palm
that deforestation had destroyed these Sinar Mas, through its pulp and paper arm, oil expansion has gone hand in hand with
habitats. Unilever consultants, checking has also been expanding into orang‑utan social conflict. With millions of people
Greenpeace’s evidence, stated that: habitats in Sumatra surrounding the Bukit depending on forests for their livelihoods,
Tigapuluh National Park – an area of High clearing natural forests to make way for
e are dug by 14 February 2009
‘At least three of the four Sinar Mas Conservation Value forest and the location monocultures leads to disputes and forces Channels like thes
ies to drain and West Kalimantan
concessions visited [in March 2009] of the world’s only successful reintroduction communities to change their way of life. plantation compan
comprise or comprised orang-utan habitat programme for orang‑utans. This forest burn peatland rainf
orest Sinar Mas – Cipta
… such habitat has been cleared and planted area is also an ‘essential habitat for an In West Kalimantan Sinar Mas is expanding PT Kartika Primachannels on
Digging drainage
Sentarum
peatland near Danau
with oil palm by the companies.’37 estimated 100 of the last 400 critically its operations around the Danau Sentarum
endangered Sumatran tigers left in the wild… National Park – an internationally recognised
National Park
In addition the consultant stated that: and …around 40–60 endangered Sumatran wetland site. An assessment conducted by oil palm plantations.41 According to the head
elephants, which spend most of their time Flora and Fauna International (FFI) revealed of the National Park, disrupting and polluting
‘An orang-utan was seen … in the PT SKU outside the national park in forests now that by 2009 Sinar Mas had already begun these wetlands will severely affect the
[a Sinar Mas company] concession in the under Sinar Mas’ control’.39 The company developing channels in the concession area source and quality of the Kapuas River which
vicinity of Desa Runtu in early December has confirmed its intentions to clear this in order to drain the swamp peatland for its holds 70% of West Kalimantan’s fresh water
fish stocks, that surrounding communities
depend on.42
In late 2008, as well as April 2009,
Greenpeace uncovered evidence of
Sinar Mas clearing rainforest for oil palm
plantations in the Lereh region near
Jayapura, the provincial capital of Papua
province.43 This concession is officially
20,535 hectares in size44 and an area
of lowland rainforest.45 At both times,
Greenpeace’s investigation team found
evidence of forest burning to clear land for
oil palm plantations, which is illegal under
Indonesian law.46 These forests contain a
wealth of primary sago and nipah plants.
Sago is a staple food of Papua’s people and
an essential source of daily nutrition, while
nipah is used in home building. Clearing these
forests and with it the necessities of life for
local communities is another tragic impact of
Sinar Mas’ palm oil expansion.
Sinar Mas’ pulp and paper expansion into
Sumatra’s Bukit Tigapuluh will heavily impact
two of the area’s minority indigenous tribes
– the Talang Mamak and Orang Rimba.47
These communities rely on the forest and
river for their survival. By clearing their
unities
plantations is one of
the forests and replacing them with plantations od for local comm
Forest destruction for Sago is a staple fo pansion
orang-utan Sinar Mas is threatening the future of d by palm oil ex
main causes of the ste
ep decline in the in Papua threatene
years these peoples.
population in recent
6. 14 February 2009 9 October 2008
West Kalimantan West Kalimantan
Sinar Mas – BreakIng the Law Sinar Mas –
PT Kartika Prima Cipta
Greenpeace investigations have revealed PT Kartika Prima Cipta rning on Sinar
Clearing rainforest
on deep peat for that Sinar Mas companies have persistently Fires are frequently bu ing illegal
palm oil te it be
broken Indonesian forestry laws and
Mas concessions despi since 1999
unde r Indonesian law
regulations when clearing forest land for a
number of oil palm plantations. Greenpeace
released evidence at the end of 2009
showing that Sinar Mas had failed to comply
with Ministry of Forestry regulations and
in some cases failed to apply for and obtain
Timber Cutting Permits known as IPKs,
prior to clearing forest in a number of its
concessions close to Danau Sentarum
National Park in West Kalimantan.
57
According to Indonesian law, prior to
obtaining the right to develop a plantation
(Plantation Business Permit) and before
commencing any land clearance, a company
must conduct an Environmental Impact
Assessment (EIA) and have this approved
by local authorities. In 2009, Greenpeace 14 February
used satellite imagery to expose how a Sinar
West Kalimant2009
Sinar Mas – an
Mas company (PT Agro Lestari Mandiri) PT Paramitha
had commenced the clearing of 4,000 Clearing ra Internusa Pratama
hectares of land months before the EIA had the legally requ inforest for palm oil without
ired Timber Cut
been approved.58 In another case, a Sinar ting Permit
Mas company (PT Kenana Graha Permai)
had already started land clearing two years
before its EIA was approved.
59
BurnIng raInforests
destroyIng PeatLand that is offsts to development or
peat
fore
limits
While degraded tropical forest and peatlands June 2004
Many new plantations are located on that
release their stores of carbon over decades,
48
Ministerial Decrees have stipulated
degradation under Indonesian law. burning releases these stores into the
e must be protecte d and should not be
peatlands of three metres deep or mor clearance on
atmosphere rapidly and damages the
converted to plantations.
49
Greenpeace has documented such capacity of the ecosystem to recover. Even
lier Sinar Mas and Unilever consultants
concessions belonging to Nestlé’s supp though the practice of burning forest areas
concluded in their audit that : has been illegal in Indonesia since 1999,54
fires account for 70% of Indonesia’s annual
area could
[such] peatlands. The total peatland
‘Sinar Mas has cleared and planted emissions from peatland.55 Greenpeace
insight in its soil maps.’
50
pany did not provide
not be determined because the com has identified fire hotspots in Sinar Mas
concessions and the Unilever consultants
ation Value assessment in a Sinar Mas
In 2009, FFI conducted a High Conserv confirmed that:
Cipta). The results confirmed that the
owned plantation (PT Kartika Prima e
peat (as deep as seven metres in som
plantation concession contained deep ‘The Greenpeace claim that there were
August 2007
nesian law), and that clearance of this area st Kalimantan
places – and so protected under Indo issue, it was revealed
numerous fire hotspots in the Sinar Mas
Ketapang District, We
was already underway.
51
During a public consultation on the concessions … in 2006–2007 is true. Sinar Mas –
ession area following iri
that Sinar Mas had agreed to stop clea
rance in the conc Sinar Mas does not have in place the PT Agro Lestari Mand ows that PT ALM
However, a later field verification miss
ion conducted in August 2007 Satellite evidence sh rest
this first field visit by FFI. legally required fire prevention policy
4,000 hectares of fo
August 2009 by FFI and Sinar Mas
confirmed that clea rance of peat forest had and measures.’56 had cleared nearlyobtained its EIA approval
visit, and peat drainage channels had
been dug. land before it had
continued since that first
emissions
ates that Sinar Mas’ average annual
In Sumatra alone, Greenpeace estim
concessions for just one province (Riau)
from peat degradation under oil palm emissions of
is 2.5 million tonnes of CO2
52
– equivalent to the average annual
almost half a million cars.
53
7. Nestlé is a major consumer of palm oil and faILIng to Meet Its PassIng the BuCk
its use is increasing. Despite undertaking own standards Action to stop dealing with the worst palm
a ‘detailed review… to identify the origins Nestlé claims to be concerned about the oil producers must be taken by the major
of [its] palm oil’60 and making promises global environment, to be acting on climate consumers of palm oil, as both Unilever and
to communicate its ‘support for an end change and to be a responsible corporate Kraft have done by terminating contracts
to deforestation’61 with existing suppliers, citizen, yet fails to live up to even its own with Sinar Mas. Nestlé, however, has made it IndonesIan raInforest
Nestlé has continued to trade with sustainability standards and supplier codes. clear that it prefers to delegate responsibility destroyed to Make
Sinar Mas. for mitigating all the impacts of its palm way for sInar Mas’ oIL
The company’s ‘Policy on Environmental oil use to the Round Table on Sustainable PaLM PLantatIons
In response to letters from Greenpeace Sustainability’, for example, commits it Palm Oil (RSPO).71 This multi‑stakeholder,
Nestlé has admitted it buys palm oil from to giving preference to ‘suppliers who voluntary organisation, of which both Nestlé
Sinar Mas. In Indonesia, it buys palm oil continuously strive towards improving and a number of Sinar Mas companies
products directly from the Sinar Mas group62 the efficiency and sustainability of their are members, was established in 2004 to
while in other key markets it purchases palm operations and use of resources’.69 In April promote the growth and use of sustainable
oil products from companies supplied by 2009, Nestlé told Greenpeace that all its palm oil products. The organisation has
Sinar Mas. suppliers had been sent a copy of its Supplier since received significant criticism for
Code, which includes ‘certain non‑negotiable having standards that are not only too weak
One of those suppliers is the global principles of sustainability, the breach to begin with, but are habitually ignored
commodities giant Cargill. Nestlé boasts of of which can result in losing Nestlé as a by its members, who continue to destroy
its ‘long‑lasting relationship’ with Cargill.63 customer. We [Nestlé] have insisted on a rainforests and peatlands for palm oil.72 IndonesIa
In the UK, Nestlé’s York facility, which written response confirming acceptance of In relying so heavily on the RSPO, Nestlé
specialises in producing KitKat, receives this Code.’ is effectively failing to take responsibility PaLM oIL ProduCts
shipments of palm oil from Cargill on a for its own actions.
regular basis.64 Principle V of this code states that: ‘The
supplier must operate with care for the
According to confidential information environment and ensure compliance with hIdIng BehInd
obtained by Greenpeace, Cargill was a major all applicable laws and regulations in the faIrtrade
customer of Sinar Mas’ palm oil exports country where products or services are In early 2010 Nestlé invested heavily in a
from Riau, Sumatra in 2009.65 Other manufactured or delivered’.70 The evidence UK TV and press advertising campaign for
investigations have shown that Cargill presented in this dossier shows that Sinar the launch of its new Fairtrade brand. While
is shipping Sinar Mas palm oil to India, Mas is breaking Indonesian law and Nestlé’s laudable, the Fairtrade brand accounts for
the Netherlands, Italy and Germany ‘non‑negotiable principles of sustainability’. only 1% of the company’s cocoa use,73 and
(see diagram 1).66 This should come as no surprise to Nestlé while trying to position itself as a responsible
as Greenpeace has pointed this out on a corporate citizen, Nestlé continues to ignore
IOI (Loders Croklaan) is another important number of occasions. Yet, despite knowing the social and environmental crimes of its
supplier of palm oil to Nestlé’s Hamburg Sinar Mas is breaking its own Supplier Code, palm oil suppliers.
factory where palm oil is also used in Nestlé continues to source palm oil from
KitKat.67 Greenpeace has collected evidence Sinar Mas. and other Brands
revealing that IOI (Netherlands) received
several shipments of Sinar Mas palm oil
in 2009.68
diagram 1: The links to Sinar Mas – Nestlé’s palm oil supply
10
9. Greenpeace is an independent global campaigning organisation
that acts to change attitudes and behaviour, to protect and
conserve the environment and to promote peace.
Greenpeace is committed to stopping climate change.
We campaign to protect the world’s remaining ancient forests
and the plants, animals and peoples that depend on them.
We investigate, expose and confront the trade in products
causing forest destruction and climate change.
We challenge governments and industry to end their role in
forest destruction and climate change.
We support the rights of forest peoples.
March 2010
Published by Greenpeace International
Ottho Heldringstraat 5
1066 AZ Amsterdam
The Netherlands
enquiries@int.greenpeace.org
www.greenpeace.org/forests
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