Managing Risks in the Palm Oil Supply Chain – A Guide for Investors

This guide discusses the financial and sustainability risks associated with the palm oil industry, particularly focusing on tropical deforestation. The guide encourages the implementation of landscape and jurisdictional approaches to address deforestation holistically and emphasizes the need for collective action among industry stakeholders to achieve sustainable palm oil production.

The report is divided into four sections, which contains a primer on the palm oil industry, followed by a section on the relationship between sustainability performance and forest-related financial risk posed by companies and investors in the palm oil supply chain. The report then provides an assessment of five Indonesian palm oil producers that have not disclosed through CDP, identifying risks using simplified CDP Forest Key Performance Indicators and publicly available information. Finally a set of recommendations on steps for investors to reduce to reduce the deforestation risk exposure of their investments or financing portfolios.