New Report Identifies Secret Market for Deforestation-Linked Palm Oil
Investigation shows how Olam, owned by Singapore’s national wealth fund, is driving rainforest destruction from Gabon to Indonesia...A new report released today by Mighty and Gabon-based NGO Brainforest reveals that Olam, one of the world’s leading agribusiness traders, is operating a secretive palm oil trading operation. It finds that Olam is creating a market for deforestation-linked palm oil, and then funneling it to some of the world’s best known brands that have touted their own strong sustainability policies. Olam is majority owned by Singapore’s national wealth fund, Temasek...“Olam is operating a giant ‘black box’ of palm oil from unknown sources,” said Etelle Higonnet, Campaign and Legal Director at Mighty. “Unlike its more responsible competitors, Olam gives its suppliers until 2020 to comply with its sustainability requirements. That’s like waving a green flag at rogue palm oil companies telling them to get as much deforestation as possible done now–before the deadline.”...The analysis found that Olam cleared approximately 20,000 hectares of forest across its four concessions since 2012...“Olam broadcasts that it is a sustainability leader to the world, but that is far from the reality in Gabon,” said Marc Ona Essangui, founder of the environmental NGO Brainforest and Goldman Award Winner. “After fighting for years, we hope this report will finally spur action by Olam to truly adopt industry best practices to protect the forest homes of our communities and precious wildlife.”...Unsustainable palm oil production in Indonesia caused rampant forest fires, leading to thick haze that blanketed the entire Southeast Asian region in 2015. Singapore was particularly affected by the haze. Schools were closed, flights were cancelled, and tens of thousands sought medical attention. An estimated 2,200 premature deaths occurred in the nation as a result. Ironically, through Temasek’s investments in Olam, the people of Singapore have unwittingly financed what is likely one of the world’s largest “black boxes” for the kind of unsustainably produced palm oil that led to this haze crisis.