Damage the Earth, damage your brand: palm oil firms face financial fallout
Companies trading in or using the product could collectively lose up to $10bn in reputational and market risks
Forest-related risks could cost companies that trade in or use Indonesian palm oil as much as $10bn (about R151bn) this year, according to a study of more than 100 firms published by a global environmental group.
The non-profit CDP said it surveyed 125 firms that are producing, sourcing or using Indonesian palm oil, with respondents collectively reporting as much as this in potential financial impacts from reputational and market risks.
Indonesia is the world’s largest producer of palm oil, a versatile edible oil found in consumer goods from food to cosmetics. It is also home to the biggest forests outside the Amazon and Congo...