• 2 case study the palm oil example – the national academies press in Tanzania
  • 2 case study the palm oil example – the national academies press in Tanzania
  • 2 case study the palm oil example – the national academies press in Tanzania
  • 2 case study the palm oil example – the national academies press in Tanzania
  • Can unsustainable palm oil production cause a loss of investment?
  • These cases highlight not only the loss of investment that can result from unsustainable palm oil production, but also the importance of a company engaging seriously with its investors about such issues.
  • How does sustainability affect palm oil production?
  • We look here at sustainability considerations that can have a clear impact on a company’s efectiveness and ability to produce palm oil. Palm oil production is closely linked with local environmental conditions, with companies both potentially creating and being impacted by physical risks.
  • Can the palm oil industry improve its practices?
  • To date, arguments used to persuade the palm oil industry to improve its practices have focused, quite rightly, on the ecological and moral cases for change. However, these arguments have not yet been enough to convince all actors in the industry to improve to the extent required.
  • Why is legal compliance important for palm oil production?
  • Legal compliance can also reduce risks of companies receiving large fines. This can decrease their costs of production and help them retain customers with strong sustainable procurement policies and requirements for legally produced palm oil.
  • Should palm oil companies be committed to sustainable practices?
  • Palm oil companies should make strong, binding commitments to sustainable practices – as outlined through SPOTT’s assessments and the PRI’s investor expectations statement (Box 4) – and should be able to prove that these are being implemented and monitored on the ground.
  • What are the economic advantages of oil palm plantations in Malaysia?
  • Large oil palm plantations can act as large carbon sequestering sinks which is another economic advantage for the people of Malaysia. This can be converted to carbon credit which is a commodity that can be traded for economic value.