April 15, 2020

Facing the ESG Risks of Palm Oil

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

Learn more about our screenings and controversies solutions ›

Share this
Share on twitter
Share on linkedin
Share on email
Get WEEKLY email ALERTS ON THE LATEST ISS INSIGHTS.