This exercise helped us better understand our exposure to risks of future deforestation and land rights conflicts in Aceh. 89,667 hectares of forest and peatland banks exist within palm oil concessions in this region and could be at risk of potential future clearances. An additional 1.45 million hectares of forested land suitable for palm oil cultivation is located within 50km of mills in our supply chain. Therefore, engaging our suppliers and the producer groups further upstream on their commitments to protect these areas is essential. Plus, conducting High Carbon Stock Approach (HCSA), High Conservation Value (HCV) and Free, Prior, and Informed Consent (FPIC) assessments prior to future development must be central to our supply chain engagement strategy. This will help better inform our risk analysis and the design of our intervention strategies.
The work still to do
We also see the limitation of this exercise. Indeed, to effectively assess future forest risks and design effective strategies, we lack more accurate and complete data sets. In some cases data exists but is difficult to obtain, pointing to the need for more transparency. This includes information on: