Indonesia's biggest palm oil producer pledged Wednesday to follow new standards to protect carbon-rich forests and peatlands, in a move cautiously welcomed by environmentalists including Greenpeace.
Indonesia
's
biggest palm oil producer pledged Wednesday to follow new standards to protect
carbon-rich forests and peatlands, in a move cautiously welcomed by
environmentalists including Greenpeace.
Golden Agri-Resources Ltd. (E5H.SG), or GAR, and its subsidiary Smart, part of
the Sinar Mas group, said it would work with Geneva-based consultancy The
Forest Trust, or TFT, to ensure its palm oil is sustainably harvested.
"We will not develop plantations on High Carbon Stock (HCS) forests, High
Conservation Value forest areas and peatlands," Smart president director
Daud Dharsono told reporters.
He said the partnership with The Forest Trust "aims to ensure that the
group has a no deforestation footprint."
Scientists believe the destruction of carbon-storing forests is a lead cause of
climate change.
Indonesia
is
the third biggest emitter of the greenhouse gases blamed for global warming,
thanks mainly to deforestation across islands such as
Sumatra
and
Borneo
,
where illegal logging is rife.
Major palm oil buyers including Nestle S.A. (NSRGY) and Unilever PLC (UL)
cancelled contracts with Smart in response to a Greenpeace campaign last year
highlighting the company's allegedly unsustainable clearing of forests.
TFT executive director Scott Poynton said better management of the palm oil
industry was crucial for the environment.
Indonesia
is
the world's biggest palm oil producer.
"Without better stewardship, the phenomenal growth of the palm oil
industry could spell disaster for local communities, biodiversity and climate
change as palm plantations encroach further and further into forested
areas," he said.
But he added, "We all know that this agreement counts for nothing if its
not now implemented."
"We have worked with other companies to clean up their supply chains
successfully, and it is our intention to do so again," he said.
Greenpeace
Indonesia
forest campaigner Bustar Maitar said the group's campaign against GAR would be
put on hold to give it a chance to prove that Wednesday's announcement was more
than greenwashing.
"On paper, these commitments are really a major step forwards and if GAR
implements these changes, it will save large areas of forests," he said.
"But we will watch closely to make sure this happens."
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