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Highlighting the risks of unsustainability

New report serves as warning to financial institutions

The Roundtable on Sustainable Palm Oil (RSPO) and Landscape Indonesia recently released a report highlighting the increasing reputational, regulatory, and financial risks Indonesian financial institutions are facing by funding unsustainable palm oil producers. The report, titled “Managing Palm Oil Risks: A Brief for Financiers,” traces the routes by which unsustainable palm oil practises could translate to increasing risks for banks and the investors financing them. It sets out a clear way forward for banks wishing to take the bold step of transitioning their current palm oil portfolio into one that is more supportive of sustainable economic development in Indonesia.

Launch also featured a roundtable workshop

RSPO hosted an event at the Financial Club, Jakarta on 12 December to launch the new report. More than 50 representatives from Indonesian financial institutions, including banks, insurance, consulting, associations, and others attended the launch which included a roundtable workshop. A separate media briefing with Indonesian reporters was held separately. The report was commissioned by RSPO and written by Agus Sari from Landscape Indonesia and World Agroforestry Centre (ICRAF), Jan Willem van Gelder of Profundo, and Pablo Pacheco of the Center for International Forestry Research (CIFOR).

Click here to read the full press release and here to access the report.