A recent ISS ESG analysis highlights why the palm oil industry is fraught with a number of significant ESG risks. Allegations levelled against companies include plantations’ encroachments of indigenous land, adverse impacts of oil palm monocultures on biodiversity – including on orangutans – in biologically rich areas, and “gross exploitation” of workers harvesting the fruit.
ISS ESG closely monitors this industry, and our team has identified:
- over 30 publicly listed companies involved in controversies related to palm oil
- over 400 publicly listed companies at different levels of involvement in palm oil, ranging from growers to distributors, 100 of which derive at least 25% or more revenue from palm oil
- that only eight of the aforementioned companies are fully certified by the RSPO, more than half have no RSPO certification to speak of