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Active ownership
Introduction
ESG integration
Climate change
Partnership with Prudential
Community and people
A final word
Palm oil Palm oil is the world’s most produced, consumed, and traded vegetable oil. It is four times more productive 3 than the next best vegetable oil (soybean oil and rapeseed oil), and up to ten times more productive than coconut and sunflower crops. From a land use perspective, it is one of the most efficient crops. Up to 35% of the world’s vegetable oil is palm, yet it is grown on only 10% of the land used to produce vegetable oils. Approximately six million people rely on palm for their livelihoods and estimated 40% of palm is grown by smallholder farmers 4 . The irresponsible production of palm oil, however, has caused widespread deforestation and biodiversity loss and exacerbated climate change. It also leaves in its wake a trail of negligence
– for engagement on sustainable palm agriculture practices. The purpose is to assess and engage to elevate the standards of growing or sourcing to meet all the material aspects of RSPO and SPOTT Index. To conduct our initial assessment, we have developed a set of criteria required to assess all the different players in the palm oil industry. Thus far, we have reviewed 100% of the companies and commenced engagement with 95% of the same group. We will continue these engagements into 2023.
and disregard for human labor and land rights of local communities and indigenous peoples. We have commenced engaging the palm oil value chain, from growers and traders to Fast-Moving Consumer Goods (“FMCG”) companies. Although there are country certifying bodies to certify Sustainable Palm Oil, we choose to base our assessment criteria off the RSPO and Sustainability Policy Transparency Toolkit (“SPOTT”) Index as they are the globally recognised certification body for palm oil and one of the top independent assessors on soft commodities respectively. We have identified 22 different players within the palm oil industry – 17 plantations and supply-chain companies, four FMCG companies, and RSPO itself
3 D efined as volume output per hectare of land cultivated 4 R SPO definition <50 hectares land ownership
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