An investigation by Rainforest Motion Community (RAN) utilizing satellite tv for pc imaging and discipline evaluation recognized a four-fold improve in forest clearance within the Rawa Singkil wildlife reserve in Indonesia’s Leuser ecosystem within the final three years.
The examine discovered that 2,577 hectares of forest had been cleared contained in the reserve since 2015, the 12 months that a lot of the palm oil trade dedicated to cease clearing pure forests. Three-quarters of the recorded forest loss has occured after 2020 – the closing date for forest loss stipulated by the European Union Deforestation Regulation (EUDR).
The findings would imply that the implicated firms are technically not eligible to promote palm oil to European markets when the EUDR – which has been delayed following strain from palm oil lobbying teams – comes into drive.
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The proof clearly reveals that palm oil sourced from illegally cleared land is infiltrating international provide chains, placing iconic species just like the Sumatran orangutan at grave threat.
Gemma Tillack, forest coverage director, Rainforest Motion Community
Rawa Singkil wildlife reserve is a part of the Leuser ecosystem, the one habitat on Earth the place orangutans, rhinoceros, elephants and tigers co-exist, in a 2.6 million hectare expanse of forest on the island of Sumatra. It is usually among the many world’s precedence conservation landscapes due to its carbon-rich peat soils.
Whereas deforestation in Indonesia is usually blamed on smallholders that use conventional slash-and-burn methods to clear land for planting, RAN discovered that these chargeable for chopping forests within the reserve are highly effective “land speculators”. The report didn’t disclose their identities, though RAN has performed so in earlier investigations.
It stated land speculators are regionally influential people who typically have formal positions that allow them to commerce land titles with exterior events and sometimes have a number of land possession certificates.
RAN recommended that the land growth is an try and clear peat forests earlier than the nationwide authorities finalises a discipline validation of the reserve boundaries to scale back its dimension and “normalise” the illegally cleared areas.
Rainforest Motion Community’s investigation discovered elevated deforestation within the Rawa Singkil wildlife reserve between 2016 and 2024, with an acceleration in forest loss post-2020 – the closing date for deforestation stipulated by the European Union Deforestation Regulation. Supply: RAN
The mills that obtained contemporary fruit bunches (FFB) from land cleared within the Rawa Singkil wildlife reserve had been recognized as owned by PT World Sawit Semesta (PT GSS), which was implicated in deforestation in a report by RAN in 2022, and PT Aceh Trumon Anugerah Kita (PT ATAK). These mills obtained the FFB from a dealer named UD Iqbal Jaya.
PT GSS provides merchants together with Apical, owned by Singapore-listed Royal Golden Eagle (RGE), and Musim Mas, one other palm oil large listed on the Singapore Inventory Trade. These firms, which provide oil to international manufacturers resembling Procter & Gamble, Nestlé, PepsiCo and Unilever, have had no deforestation, no peat, no exploitation (NDPE) commitments in place since 2015 and 2014, respectively.
A Musim Mas spokesperson stated that it shared RAN’s issues about encroachment within the reserve and has been partaking with its suppliers in Aceh in recent times “to extend their consciousness about, and capability to adjust to, our no deforestation necessities.”
“Some suppliers have been excluded from our provide chain. We’re at present investigating the findings from RAN, partaking each with RAN and with our suppliers,” it stated.
Musim Mas suppliers, in addition to these of rival palm merchants together with Permata Hijau, Golden Agri-Assets and Wilmar, have been linked to unlawful forest clearing within the Rawa Singkil wildlife reserve over the past 5 years in different investigations by RAN.
RAN highlighted a failing in traceability methods that set up precisely the place a palm oil plot was grown as key to firms struggling to weed deforestation out of their provide chains. Granular traceability is a key compliance requirement of Europe’s anti-deforestation regulation.
An Apical spokesperson stated that after partaking with RAN, it engaged with PT GSS, which it confirmed as a provider, to look into its dealings with UD Iqbal Jaya, the dealer that sourced the oil from the reserve. It stated it has no provider association with PT ATAK.
“PT GSS has knowledgeable Apical that as a precautionary measure, it has suspended UD Iqbal Jaya as of 25 October 2024, and any crops delivered from this provider have been rejected by PT GSS’ weighbridge system till investigations are concluded. We’ll proceed to observe the measures taken by PT GSS to make sure strict adherence to its traceability and sustainable sourcing requirements,” the spokesperson stated.
Apical stated it stays dedicated to accountable manufacturing by its sustainability and sourcing insurance policies and is in discussions to develop a undertaking for the Aceh Sustainable Palm Oil Roadmap, which was launched final 12 months to advertise deforestation-free palm oil farming in Aceh.
Deforestation-linked loans?
RAN’s report famous that Musim Mas and RGE had lately been granted sustainability-linked loans (SLLs), which give firms entry to low-cost finance on the situation that they meet sure sustainability standards.
In August, RAN known as out Mitsubishi UFJ Monetary Group (MUFG), a Japanese banking large, for “sustainable finance greenwash” for lending billions in SLLs to RGE, regardless of the assets agency’s alleged hyperlinks to deforestation by suppliers. RGE denied any connection to the implicated growers.
The important thing efficiency indicators (KPIs) that underpinned RGE’s loans included growing the variety of suppliers finishing up unbiased traceability verification to 100 per cent by 2025.
MUFG, which is RGE’s main lender, declined to touch upon RAN’s report.
In September, Musim Mas introduced its first SLL by Dutch lender Rabobank, which evaluation by Eco-Enterprise discovered didn’t sufficiently confirm who could be monitoring progress that underpins the mortgage, in keeping with trade finest apply. Among the many KPIs for Musim Mas’ SLL was for the corporate to take care of a deforestation-free provide chain.
Rabobank, Musim Mas’ main lender, stated it was unable to remark in response to the report.
The environmental marketing campaign group stated that with a view to arrest forest loss within the Rawa Singkil wildlife reserve, funding is required in “low-carbon, community-led, small-scale” agriculture that respects neighborhood rights.
The deforestation within the Rawa Singkil wildlife reserve is in line with a nationwide spike in palm oil-linked deforestation on the planet’s largest producer of the edible oil seen final 12 months. Nonetheless, the development jars with a decline in deforestation noticed elsewhere in the Leuser ecosystem.
