Managing Palm Oil Risks - A Brief for Financiers
The Indonesian financial sector faces sizeable reputational, regulatory, and financial risks if it continues to support non-sustainable palm oil companies. As such, it should join actions advanced by the Indonesian government, the global community, palm oil buyers, and international banks and investors in managing the detrimental environmental and social impacts caused by non-sustainable palm oil practices.
Such stakeholder actions are increasing, and include the Indonesian government’s moratoriums on development in primary forests, peatland, and on further expansion of palm oil. This paper consists of three chapters, examining the risks in the unsustainable palm oil sector for companies and financiers, highlighting the benefits of investing in sustainable palm oil, and providing practical recommendations for banks intending to address the looming risks of their exposure to unsustainable palm oil.
