A significant problem with reference to deforestation, is the growth and use of Palm Oil in the food chain and for bio fuels. Notably in areas of south eastern Asia, palm oil has been responsible for the substantial reduction of rainforests through the indiscriminate clearing of the natural forestry.
Studies by the World Wildlife Fund have shown that increased demand for palm oil for use in consumer products is leading to extreme rates of deforestation in Malaysia and Indonesia particularly, where palm oil plantations have been found to contribute to illegal logging. The Palm Oil industry in south east Asia is a highly significant emmiiter of green house gases, due to the deforestation involved when clearing the forest.
Palm oil is almost everywhere in the food chain due its versatilty, and also down to its low cost. It is present in products as wide ranging as ice cream, cheese, ready made meals and biscuits. In fact it has been reported to be in 10 percent of all supermarket food. Some of the larger corporations are now waking up to environmentalists campaigning against the problem.
The “Roundtable on Sustainable Palm Oil” was formed five years ago to bring into force strict rules for certifying palm oil which is produced according to environmental standards and does not contribute to illegal deforstation, but many manufacturers have snubbed the more expensive, certified palm oil. As a result only 15% of major retailers and manufacturers surveyed in its latest industry report have commited to moving to sustainable palm oil.
However, Europe’s biggest biscuit manufacturer United Biscuits has recently signed a deal to purchase certified palm oil from for a minimum of two years. A welcome move.
Unfortunately, the industry as a whole has not embraced the sustainability issue like United Biscuits has done. The lack of demand has resulted in only 19 per cent of the one million tonnes of certified sustainable palm oil being purchased, and has allegedly prompted some manufacturers to even mix sustainably produced oils with non-sustainable oils to make it more profitable.
The sustainable forestry investment community stands fully against these practices.
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