The green image of one of Malaysia’s largest conglomerates suffered a major blow on Friday with its suspension from the world’s largest association for ethical palm oil production, the RSPO.

IOI Group was one of the founding members of the Roundtable on Sustainable Palm Oil, but it has been suspended over its operations in the Ketapang area of Indonesian Borneo, where three of its subsidiaries are alleged to have violated a raft of RSPO standards meant to prevent rainforest destruction and social conflict, and some laws…