How Unilever palm oil suppliers are Burning up Borneo

HOW

PALM OIL SUPPLIE SUPPLIERS RS ARE

BURNING UP BORNEO www.greenpeace.org

2

NEW EVIDENCE SHOWS EXPANSION BY PALM OIL SUPPLIERS IS DRIVING SPECIES EXTINCTION IN CENTRAL KALIMANTAN  AND FUELING CLIMATE CHANGE In November 2007, Greenpeace released Cooking the Climate , an 82-page report summarising the findings of a two-year investigation that revealed how the world’s largest food, cosmetic and biofuel companies were driving the  wholesale destruction of Indonesia’s rainforests and peatlands through growing palm oil consumption.  This follow-up report provides further evidence of the expansion of the palm oil sector in Indonesia into remaining rainforests, orang-utan habitat and peatlands in Kalimantan. It links the majority of the largest producers in Indonesia to Unilever, probably the largest palm oil corporate consumer in the world. Unilever uses 1.3Mt of palm oil or palm oil derivative every year – about 3% of global production.1 About half of Unilever’s palm oil supply comes from Indonesia.2 As recently as 2005, Unilever purchased 1 in every 20 tonnes produced in the country.3 Unilever has failed to use its power to lead the palm oil sector toward sustainability, either through its own palm oil purchasing – its primary suppliers in Indonesia represent over a third of the country’s palm oil production4 – or  through its role as leader of the Roundtable on Sustainable Palm Oil (RSPO),  whose members represent 40% of global palm oil production.5  Through analysis of maps, satellite data, and on-the-ground investigations between February and April 2008, Greenpeace has mapped out how expansion of the oil palm plantations in Central Kalimantan is fuelling climate change and helping drive orang-utans to the brink of extinction. As Greenpeace investigations show, this expansion into the Indonesian territory of the island of Borneo has in large part been led by companies who are Unilever suppliers and RSPO members.

3

 This destruction is set to get worse. By 2030, demand for palm oil is predicted to more than double that of 2000. 6 Between 2006 and 2016 alone, palm oil production is set to increase by close to 15Mt.7  To meet this growth in demand, major producers including Unilever suppliers and RSPO members are expanding their plantation areas into forests and peatlands in Indonesia.8 This expansion – often illegal9 and in breach of RSPO principles and criteria10 – is not only bad for wildlife, it is also bad for the climate and bad for governance. Unilever itself is implicated in the impacts of this expansion through rapidly growing brand platforms that use significant quantities of palm oil and palm oil derivatives from companies operating in Indonesia. Product brands and brand  (Persil , Omo, Surf Excel ), platforms include Dove,  Dirt is Good  Persil  ), Knorr ,  HeartBrand (Walls) and HealthyHeart  Flora/Becel   (Flora/Becel ). ). Greenpeace investigations provide new evidence that it is Unilever’s own palm oil traders and producers (themselves RSPO members) who are leading ‘aggressive expansion’ of the sector that results in the devastation of the last remaining orang-utan rainforest and peatland habitat in Borneo. By failing to apply and enforce RSPO principles and criteria to both traders and producers at group level, Unilever has failed to bring the rapidly expanding palm oil sector under control. The growth of global brands and brand platforms such as Dove and Dirt is Good is creating incentives for Unilever’s suppliers to expand, ‘leading to the devastation of the last remaining rain forests in Borneo’.11 As it stands, Unilever suppliers are driving species extinction, climate change through the significant greenhouse gas (GHG) emissions linked to deforestation and peatland destruction, and land conflict with forest-dependent communities. Given the urgent nature of the crisis, the only solution for the global climate, the regional environment, the wildlife and the forest-dependent communities relying upon Indonesia’s forest resources is a moratorium on oil palm expansion into rainforest and peatland areas.

OIL P ALM  W O H : N O I  TI  T C N I  TI  T  X E G N I PP  AP M A  T A T H ABI T G N I    VI V I R D E R  AR  A S N O I S S E C CON E CH ANGE  TE  T  A M I L C G N I L L E U F D N  AN  A  TIION RUC T  TR DES T

0  20 0 2  20 ION 19 5 0– 2  T  A  T   S E R O F E D : O E N R O B N I R E  V  FORE S T CO er  ve Fores t co v  tiion a t  ta ores t  fo De f

19 50

2000

 IS T RIBU T ION IN BORNEO: AN D S ORANG-U T  0  20 0 2  20 0 – 2  30 POPULA T ION LO S S 19 3  tiion  trribu t an dis t  ta Orang-u t

19 30

1999

5

F.12 Fores t loss  WF  W W  y W d b y led mpile o c s p a m 5 0 0 2 n o d  tiions base er  ve ec t  je ha t o v  th es t  te  tiima t Maps and pro j  work. W WF es t  t wo e n d a o r g n i  ti  t s i  xi  x e d n  t..  tiions are placed arou ec t e been los t  je  ve pro j  wiill ha v er w  ve s t co v e r o  fo  f f  f o a h 0 0 0 , 0 8 2 , 7 2020 abou t 1  –2 he period 2000 –  th  t

2 010

2 0 20

13  W WF.  y W ed b y l i p m o c s p a m 5 0 0 2  tiions based on ec t  je Maps and pro j  ly in areas  tiion on y  trribu t an dis t  ta g-u t n a r o e l b a b o r p s  ws  w o he 2020 map sh  Th  T er 2020.  ve ores t co v  fo ed f  te redic t p s e h c  tc  t a m 4 0 0 2  f o n ion  tio  trribu t here dis t  wh  w

2 00 4

2 0 20

 N    O O  I  T  A  T  S  E  R  O  F  E  D  F  O  S  T  C  A  P    M M  I  T H E    A A  I  S  E  N  N D O  N I N  I N e  te  tiion ra t a t  ta ores t  fo es t de f  te as t  fa  f e h  th  t s a h  w o n a i s e n Indo  its .14 Losing 2% o f  ts    y. y r  tr  t n u o c d e  te  t s e r o  fo  f r o  jo  j o f an y ma sia has earned e n o d n I , r a e  ye  y    y y r e  ve  v e  t ores  fo 15 remaining f . s d r o c e R d l r o  W s s he Guinne  th a place in t  According to World Bank estimates, between 1985 and 1997 alone, 60% of the lowland rainforest of Kalimantan and Sumatra was destroyed.16 The United Nations Environment Program (UNEP) estimates that 98% of Indonesia’s lowland forest may be destroyed by 2022.17 Indonesia als lso o holds th the e global record fo forr GHG emissions fr fro om defo forrestati tio on, which puts it in th thiird place behind the US A and China in te terrms of  f ttotal GHG emis iss sio ion ns f rom rom human in ind dustr try y.18 The destru ruc ctio ion n of  f IIndonesia ia’’s peat swamp f ore res sts alone is one of  f th the e larg rge est sources of  f G GHG emissions in the world ld.. The lar arg gest portio ion n of  f tthese emis iss sio ion ns is asso soc ciated with fi fire res s to 1 clear the land fo 9 forr agric icu ult ltu ura rall development.

 tlland are or degraded pea t d e  ye  y o r  tr  t s e d m o r  fr  f s n o al GHG  ta Indonesia’s emissi o t  to  f t o f % 4 20 o  to  t t  t n e l a    va v i u q e , r a e  ye r y .22 e c a    fa f r u s around 1.8G t CO2 pe d n a l s ’ d l r o he w  th  f t 21 han 0.1% o f  th  frrom less t  tlland emissions,  f s goes ahead, pea t n o i  ti  t a  ta  t n a l p m l a p l i o 23 pansion in  xp ed e x  te  If predic t  f  y 2030. b % 0 5  t s a e l  t a  y b e s o ri  to  t t e se t emissions o f CO2 ar  ive  v ve es – sur v    ve v i  ti  t a l e r l a c i g o l o  t bi e o f our neares n o  – s n a  ta  t u g n a s o f Borneo and  ts  t Or s e r o  fo  f n i a r l a c i p  trro ood and  fo or f  fo he d windling t  th res t f o  ly in t  fo  f e on y h  th  t n o d n 25 e p o  to he y de  th ersion t  trra:  t  ve or con v r e b  thern Suma t m i  ti  t r nor th o  fo  f  t s e or  fo  6  ting do wn f oda y  to  ites.2 Cu t ti ne,2 7 and t i l  tiing s te c e d nes t r i e h  th  f t  f o e he main caus  th he wild.  th  tiions is t a t  ta ion in t plan t  ti  t c n i  ti  t  x e  f o k s i r ans are a t high  ta orang-u t  tiions  tiiga t es t  ve nd in v a s i s    ys y l a n a e c a e p n e e Recen t Gr  tiions a t  ta oil palm plan t n i n o i s n a p  xp  x e  t a h  th  t m r  fii con f g a serious impac t n i  vi  v a h s i s r e i l p p u s r e  ve b y Unile v  t..  ita t heir hab ta  th on t

8

AN: ALIMAN T  K  L A R  T  N E C N I N O I  T  U B I R  T   S I D N A ORANG-U T  EC T ED  JE ND PRO J A N O I  T  A  T   S E R O F E D  7 0 0  20  2 – 0 0 0  20  2 IMPAC T OF  SIION S NCE S S IMPAC T OF CURREN T OIL PALM CO  tiion  trribu t an dis t  ta Orang-u t  tiion a t  ta ores t  fo De f s Oil palm concession

 A 2007 UNEP report recognises that oil palm plantations are now the leading cause of rainforest destruction in Indonesia.33 Between 1991 and 2006, almost 5 million hectares of new oil palm concession areas have been established in Indonesia alone,34 equivalent to over 50 football pitches an hour. Much of this area was previously forest or peatland. The Indonesian Palm Oil Research Institute (IOPRI) estimates that two-thirds of all currently productive oil palm plantations involved deforestation.35 On top of Indonesia’s existing 6 million hectares of oil palms,36 the country’s central government has plans for  another 4 million hectares by 2015 dedicated to biofuel production alone.37 Provincial governments are even more ambitious in terms of oil palm expansion, planning for an additional 20 million hectares.38 Kalimantan, the Indonesian portion of the island of Borneo,  which it shares with Malaysia and Brunei, has some of Indonesia’s largest remaining areas of forest habitat. This is home to most of the world’s remaining orang-utans.

 While most current palm oil production is concentrated in Riau and North Sumatra, oil palm groups are rapidly expanding their landbanks and clearing new areas. In West Kalimantan, by 2007 oil palm concessions had been granted on more than 3.2 million ha.39 In Central Kalimantan, by 2006 oil palm concessions had been granted on 1.1 million ha.40  As a 2008 Greenpeace investigation reveals, much of this area – which overlaps critical orang-utan habitat – is being cleared of valuable forest, the peatlands drained and the land burned as oil palm plantation area expands.  As orang-utans and other species lose their rainforests to oil palm plantations, they are deprived of their natural source of food. Seeking to survive off young palm plants, hungry orang-utans can become ‘pests’ to oil palm producers, and plantation workers commonly kill orang-utans to protect the crop.41 According to the Centre for Orangutan Protection, at least 1,500 orang-utans died in 2006 as a result of deliberate attacks by plantation workers.42

9

 a  s a  att i itt h a s t h a i  g  h  at it  n c a d i ic  nd  n  i  ] i  ] …  [  d e  re  r e  ge  g  n  a d  nd  n E   s  a  i ie f ed t a n i s c l a s s i if   g--u a  a n g  ne a n o r a t a n e Bo r ne  g--u a  he  h  a n g ‘T   a n o r a t r a  at r  m a u  S e  he  h T  . e  re  r u t u f   r  a e  ne  n e    he h d i n t t he w i l ld t io n i n  he  nc i c io  xt it  n e x f e i  k of   y h i g h r i  s ve r y t re me l y h i g h  xt re  x e  n  a  s a  s  a  h t  it  i t  at  a    h h t  g  n    i i t  at  a c  ic  i d  nd  ] i i n ed [ … ]  re e r  ge d a n g  nd  n t ic a l l y E   i ic  i ie f ed a s C r it  i s c l a s s i if  e r of   be u m b  nu  the n  ,  he 0 0  90  9 1 e c  nc  n  i  S . e  re  r u t u f   r  a e  ne t he n d i n  he t he w i l ld t io n i n  he  nc i c io  xt it  n e x f e d l y i  k of   r i  s  a p i id t h a r a  , w i it h % 1  91  9 t u o  bo  b  a  y a  y  b  n e  l  le  l  a f  e v  av  htt to h a t hou g h t a n s i s  ho  g--u a  a n g  a n o r a t r a  at r u m a  Su  S  y.’  nttu r y. t h ce n t ie h  nt ie twe n e    he h t f t f  o d  nd  n e e    he h t  s d  rd  r  a w o s s to i  g l lo  a it  n e r at cce l le  ac  a 7  07  2 0 0  , 2  a m m e ,  o g r   P r  t  nt  n  e  m  n  o    r  r   i v  nv  n  E  s  n    o o    i i t  at  ed N a  itt ed U n i

These maps over lay  y s sever al data sets. Or ang-utan distr ibution is based on 2005 m aps compiled by  The oil palm concession bound y W WWF.28 ar ies ar e based on 2006 wor k b y F y  F 2 o 9 r  e s t W a tch Indonesia. Def or estation data is based on 2007 maps d eveloped by  y S Sar vision–Wageningen Univ ive e r sity  y iin collabor ation with the Ind In donesian Ministr y o y of  f F For estr y  y.  The f ir st map shows 2004 or  ang-utan distr ibution in Centr  al Kali The second map pr o j lim mantan.  je ects the impact of  f 2 2000–2007 def or estation on o r  a n g u t a n d i s t r  i b u t i o n over lay s this wit . The thir d map ith h oil palm concessions. The f o ur th map pr o j  je ects that all r emain ini i n g o r  a n g -utan habitat within concession ar eas will be lost.

10

AN: LIMAN T  A K  L A R  T  N E C N I N O I  T  U B I R  T     S S I D PEA T LAND  S PO T   SP  S HO T  E R I F  7 0 0  20  2 – 6 0 0  20  2 F O  T  C A P M I D E EC T   JE PRO J  SIION S ONCE S S C M L A P L I O  T  N E R R U C O  T  N O I  T  IN RELA  tllands Pea t s  ts spo t  ts Fire ho t s Oil palm concession

In Central Kalimantan, between 2006 and 2007, one orangutan rescue centre retrieved more than 200 orang-utans from oil palm plantations.43 Greenpeace has evidence of orang-utans found on concessions belonging to Unilever  suppliers.44 Oil palm plantation expansion takes place with little oversight from central or local government. Procedures for  environmental impact assessment, land-use planning and ensuring a proper process for development of concessions are neglected. Many new plantations are located on peat that should be off-limits to development or degradation according to Indonesian law.45 This stipulates that land should not be allocated for oil palm plantations on peat soils deeper than 2 metres; in addition, activities that damage upstream natural swamp forests with deep peat (more than 3 metres) are prohibited.46 In other words, palm oil development on such peatlands is illegal. Greenpeace has documented such clearance on concessions belonging to Unilever suppliers.47

 The use of fire to clear forest areas is the largest source of GHG emissions in the world.48 The practice has been illegal in Indonesia since 1999,49 yet remains commonplace among palm oil producers. Greenpeace has identified thousands of fire hotspots (areas visible on satellite images used to monitor forest fires) on concessions belonging to Unilever  suppliers during the period 2006–2007.50 Social conflict, including land rights and resource conflicts, is often associated with oil palm plantation expansion.51 Greenpeace has evidence of such conflicts resulting from the establishment of concessions belonging to Unilever  suppliers.52

 o r n e w  f   g  n  i  n  i  a  m    e e  r  e a s  e  ‘T h e m a i n a r  T  g e  h e l a r g  e t h  e  r  a  s  n  o    i i  t    a a  t  n  a  e n s i v e p l  e x t e  s – u n t i  li  d  n  a    l l  t  a  e  p  l  a  E  T E  T  c  i  o p  D A  tr o   r  s o f  t  a c t s  r a  t r  e a s.  e s t a r e  e  r  o  f   n  i    a a  r  n  i    g g  r  i l  v  e c e n t l  y  r e  e i  n s a r e  a t i  o  a n t a  l  p  w  e    n n  f   o O v e r 5 0%  e a s.’  n d a r e  a    l l  t  a  e  p  e  s  e    h h  p l a n n e d i n t  , 2 0 07  io n a l ,   o  i  t  a    n n  r    e e  t    n n  I  s  la n d   a  W e t l

 T L E  TI T L  TI

11

These maps over lay  lay s sever al data sets: peatland distr ibution maps,30 oil palm co ncession boundar ies based on 2006 wor k by  y F For est Watch Indonesia,31 and f ir  ir e hotspots identif ied by  y N N A  AS S A satellite ima im ager y  y. 32 The f ir st map shows peatl and distr ibu ibution in Centr al Kalimantan. The sec ond map over lay s this with 2006 – 2007 f ir e hots pot data. The thir d map over lay s this wit ith h oil palm concessions, showing wher e they  y a all over lap.

 ie s of   stt h i g h de n s it ie o s  ho  h h  ts , w h ic h  st s w a m p f o r e s  sw  att s ‘Pe a  n..  tio n  p r oduc io  p a l m o i l l p eted f o r  p  ge  g  ta r   a r e  a  , a  ta n s ,  g--u a  a n g o r  ed o n  pe o p e i n g deve l lo  be o b  so  a r e a l s  s a  tio n s  ta io  nt at  p l a n P a l m o i l l p  y..’  y  r ecove r   g r  i  g  nt i t n  p r eve n  , p d ,  nd  stt l a n f o r e s  r f  ed-ove r   ge o g g  l lo 7  07  2 0 0  , 2 e ,  me  a m m  ntt P r o g r  e n  me  r o n m v i r   nv  E n  s E  io n s  att io  itted N a U n i

12

S ARE R E I L P P U S L I P ALM O NSION  A P  X E E    V V I S S E R LE ADING AGG UNILEVER SUPPLIERS SINAR MAS, IOI,  ADM-KUOK-WILMAR, SIME DARBY, MUSIM MAS, ASTRA AGRO AND  ASIAN AGRI ARE PUSHING EXTINCTION EXTINCTION Unilever acknowledges that it has no idea where about 20% of its palm oil comes from. Of the remaining 80%, it knows the group supplying the palm oil, but not necessarily the concession areas from which it originates.53 Palm oil producers linked to Unilever include Sinar Mas, IOI,  ADM-Kuok-Wilmar, Sime Darby, Musim Mas, Astra Agro and  Asian Agri. Greenpeace analysis of deforestation maps, satellite data of fire hotspots, and orang-utan distribution maps, as well as field investigations of oil palm operations in Central Kalimantan, show these Unilever suppliers laying claim to large tracts of forest and peatland, with devastating impacts on climate and biodiversity.

‘A scenario released by UNEP in 2002  suggested that most natural rainforest in Indonesia would be degraded by 2032. Given the rate of deforestation in the past five years, and recent widespread   investment in oil palm plantations and   biodiesel refineries, this may have been optimistic. New estimates suggest that 98% of the forest may be destroyed by 2022, the lowland forest much sooner.’ United Nations Environment  Programme, 2007 

UNILEVER’S TRADERS ARE DEALING WITH BAD COMPANIES Many of the largest producers in Indonesia that supply Unilever directly are also traders. This means that a significant portion of the palm oil they sell may come from third parties as well as their own operations. In this way, the identity of groups heavily reliant on deforestation and peatland clearance is lost in the supply chain. Producer– traders include Sinar Mas, IOI, ADM-Kuok-Wilmar, Sime Darby, Musim Mas and Asian Agri.  Another significant palm oil refiner and trader,54 RSPO member,55 and supplier to Unilever is the agricultural commodity giant Cargill. It is the largest privately-owned company in the world.56 Industry sources confirm that roughly half of the palm oil imported into Europe by Cargill comes from Indonesia.57  According to export data for 2007, Cargill’s Singapore trading arm exported palm oil from 15 different oil palm concession holders in Indonesia.58 These include some of Indonesia’s largest palm oil producers: Sinar Mas, Wilmar, Musim Mas, Astra Agro and Asian Agri. 59 Greenpeace has traced palm oil from a Cargill refinery in Europe to  Knorr , one of Unilever’s high profile brands. Cargill is also one of Unilever’s European suppliers of palm oil for  ice cream.60

13

SINAR MAS IS INDONESIA’S LARGEST OIL PALM PLANTATION COMPANY SINAR MAS IS A MAJOR PLAYER IN THE PALM OIL SECTOR AND IS A MEMBER OF THE RSPO

Sinar Mas is a RSPO member through its oil palm plantation subsidiary PT SMART.61  The Sinar Mas Group accounts for almost 10% of palm oil production in Indonesia.62 The Group produces not just crude palm oil, but also palm kernel oil and a wide range of refined products for both food and industrial purposes. 63 In 2008, Sinar Mas branded itself ‘No. 1 in Indonesia’64 for total planted plantation area. This empire includes 360,000ha of plantation: some 213,000ha in Sumatra, 135,000ha in Kalimantan and 12,000ha in Papua.65 Sinar Mas claims to have ‘the largest land bank in the world for new plantations’66 and has publicly announced plans to expand its holdings by 1.3 million ha in the heavily forested province of Papua and in Kalimantan.67 However, an internal company presentation obtained by Greenpeace indicates that the company plans to develop a rainforest area of up to 2.8 million ha in Papua.68

 The Sinar Mas Group is involved in ‘aggressive plantations expansion’69 – ‘the most aggressive new planting programme among the plantation companies’70 – planting 53,000ha in 2007 with plans to plant at least 60,000ha in 2008,71 representing a growth in plantation area of over a third in a two-year period.72 Judging by past operations and known landbank, the vast majority of this will involve deforestation, some on peatlands and in critical orang-utan habitat. UNILEVER’S LINKS TO SINAR MAS

Despite Sinar Mas’ ‘legacy issues’73 – including defaulting on most of the $13.4 billion debt of its APP subsidiary in 200174 – Unilever has maintained a long-standing relationship with the company. A 1999 Sinar Mas document states: ‘Our major  customers include Cargill and Unilever. These sales were made through foreign brokers or directly to the importer  located in the countries to which the products were exported.’75 The Sinar Mas 2004 and 2006 Annual Reports76 also indicate that Unilever has been an important client in 2003–2006, along with Nestlé and Carrefour.77

OING ED IN RECEN T OR ONG  TE S IS IMPLIC A T  AS R M A  AR SIN A N  AN  A N T  AN LIM A  AL L K A  AL R A  TR N IN CEN T ION  TIO RUC T  TR FORES T DES T

a t an habitita  ta n on orang-u t ion  tio s ta t res  fore De fo  tllands  tiion on pea t a t  ta ores t  fo De f s  ts po t  tsp Fire ho ts a t an habitita  ta  forres t on orang-u t Remaining fo nds lan  tla ores t on pea t  fo g f ing Remainin

14

IOI AND UNILEVER’S LONG HISTORY IOI IS A MAJOR PLAYER IN THE PALM OIL SECTOR AND IS A MEMBER OF THE RSPO

 The IOI Group has a plantation land holding of nearly 170,000ha in Malaysia (of which 149,000ha is planted) and another 152,000ha in Kalimantan in Indonesia (of which 43,000ha is planted) via a joint venture,78 with 72% of its Indonesian holdings yet to be planted. These holdings include 63,000ha in Central Kalimantan.79 IOI has been involved in oleo chemicals since 1980.80 In 2006, IOI emerged as the world’s largest producer of oleo chemicals – chemicals often derived from palm oil that are used in cosmetics, laundry detergents and other household products. IOI has a total fatty acid production capacity of 700,000 tonnes a year.81 In 2007, the Group produced 790,000 tonnes of crude palm oil representing more than 2% of global production.82 It also produced 185,000 tonnes of palm kernel oil, 83 representing more than 4% of global production.84 In 2007, IOI is estimated to have produced around 180,000 tonnes of crude palm oil in Indonesia,85 accounting for just over 1% of Indonesian production. UNILEVER’S LINKS TO IOI

IOI has had a long association with Unilever. In 2002–2003, IOI bought the palm oil refining company Loders Croklaan from Unilever 86 at the same time as it acquired Unilever’s Malaysian oil palm plantations.87 Announcing the deal, Unilever stated: ‘Loders Croklaan will continue to supply Unilever with specialty products.’88 In 2007 and 2008, IOI Rotterdam confirmed that it supplies Unilever from its Dutch refineries.89 In 2008, Unilever named IOI as one of its principle suppliers.90

LE  TL  TI T  TI

t h e w i it h  ne e i s i n l i n  re  r u t  n e V  t  nt  n  i o  Jo  J d e  se  s o  po  p o  ro  r  p e  he  h ‘T  e  re  ts co r ow i n g i it s  ro  g r  ate g y of  g  tr at  ’s st r  p’ s s ou p  ro  he t he G r de ov i id  ro  p r  ].. It w i l l l p e s s [ … ]  ne u s i n  bu  p a l m o i l l b e  ge  a g t a r a ec a  he  ntted h  n  a  l  p o t  n o    io i t  it  i d d  ad  a e t  at  a  i d e  i m m d b a n k  nd e l a n t a b l le u i it a  su i  l l s  nt it  a  ta n  st a u b s  su  a s s  a s we l l l a ce  nc e n  he  , h t h , ow h  ro  g r  s g e s s  ne u s i n  bu ed b  ne  ta i n  st a u s  su  r s f o r t y  rttu n i it y o r  po  he t he o p p    h h t  it  i w  p u o  ro  r G e    he h t  g  n  i d  id  i v o  ro  p r e  a b l le  av f  vou r a  y  a  the ve r y e o n  he  se t a l i s to c a p i it a e  he  h  y. T  t r y.  st r du s  nd  p a l m i n t he o i l l p t loo k f o r  he ou lo  atted i n t iv a cu l lt iv e  be  l b  l  l  a  h  s  ] s  ] …  [   s  n    io i o t    at a t  nt  n  a  l  p  a l  icu l lttu r a e a g r ic  b l le  a  n  i    a a t  st  s u  su  s    h h  it  i t w e c  nc  n  a  i  l  p co m ce  nc d a n  rd cco r  ac e s i n a  nc i c i p l le d p r i  n  nd  a n  s a  tice s  ac ic  p r ac t he f t he i of   ite r i  a d c r it  nd e s a n  nc i c i p l le t he p r i  n t h  he w i it h e P a l m O i l l..’  b l le  a  n  i    a a t  st  s u  Su  S  n o e  le  l  b    a a t d  nd  n u Ro 7  07  , 2 0 0  ntt , 2 u n c e m e n  ou  A n n o  I A O I  IO  I

IOI IS IMPLIC A  AT  T ED IN RECENT  T O OR ONGOING FOREST  DEST RUCT ION IN CENT  R A  AL L K A  AL LIM A  AN NT   AN  A N

Defo for  r estatio ion n on or ang-utan habitita at Def or estatitio on on peatltla ands F ir  ir e hotspots Remain inin ing g f or est on ora ran ng-uta tan n habitat Remainin ing g f or est on peatla lan nds

15

 ADM-WILMAR-KUOK IS ONE OF THE WORLD’S LARGEST PRIVATELY OWNED GROUPS THE ADM-KUOK-WILMAR ALLIANCE IS A MAJOR

 The US-headquartered ADM claims to be the world’s leading processor of agricultural crops and Europe’s leader in biofuels.99 The company also trades crude palm oil on the Chicago futures market (meaning contracts are signed and traded months ahead of delivery).100 ADM is one of Cargill’s main competitors in the palm oil sector,101 although through  Wilmar, the alliance also trades with Cargill.102

PLAYER IN THE PALM OIL SECTOR AND IS A MEMBER OF THE RSPO

 Wilmar is a RSPO member. It claims to be the world’s largest producer of palm oil based biodiesel.91 The Group – effectively a shareholder alliance between ADM92 and the Kuok family93 – also controls about 570,000ha of concession area (just over a third of this has been cleared and planted), palm oil refineries and biodiesel plants across Indonesia and Malaysia.94 Of this, some 493,000ha is in Indonesia.95 In 2007, Indonesian production for the Wilmar Group was around 540,000 tonnes of crude palm oil, accounting for  more than 3% of Indonesia production. 96  Although Wilmar  owns substantial concession areas, more than 55% of its palm oil production comes from third party plantations.97  The Kuok Group was founded by Robert Kuok Hock-Nien, the uncle of William Kuok, one of Wilmar’s founders.  According to Forbes, in 2005, Robert Kuok Hock-Nien was the richest man in Asia.98

UNILEVER’S LINKS TO ADM-KUOK-WILMAR

In a 2006 declaration to institutional investors, Wilmar  announced that its key international customers include Procter  & Gamble, Cargill, Unilever, Nestlé and China Grains & Oils Group Corporation.103 In the UK, most if not all of Unilever’s palm oil is supplied by  ADM.104 The company operates a refinery immediately next door to Unilever’s margarine factory outside London. Reported as the largest margarine factory in the world,105 the Unilever  factory produces brands such as Flora and Bertolli.106 The  ADM refinery handles more than 300,000 tonnes of edible oils a year, including palm oil.107 In addition to supplying products to the Unilever factory, the company delivers products to a  wide range of food factories around the UK and overseas.108 Unilever also has trade links to the Kuok Group. For instance, Unilever Pakistan purchased almost 100 tonnes of palm kernel oil from the Group in August 2007.109 Kuok Group is known to source palm oil from Astra Agro as well as other third-party suppliers.110 In 2008, Unilever named Kuok-Wilmar as one of its principle suppliers.111

 ADM-K UOK -W IL  AD M A  AR R IS IMPLIC A  AT  T ED IN RECENT  T O OR ONGOING FOREST DEST RU CT ION IN CENT R  AL  A L K   AL  A LIM A  AN NT   AN  A N

Def or est at ion on or ang -ut an habit at  Def or est at ion on peat l ands F ir e hot spot s Remaining f or est  t o on or ang-ut an habit at  Remainin ing g f or est  t o on peat lands

16

SIME DARBY – THE WORLD’S LARGEST LARGEST

UNILEVER’S LINKS TO SIME DARBY

OIL PALM PLANTATIONS COMPANY

 The Group is a major supplier to Unilever.122

SIME DARBY IS A MAJOR PLAYER IN THE PALM OIL

 There is a long standing relationship between Unilever and companies now part of Sime Darby Group.

SECTOR AND IS A MEMBER OF THE RSPO

 The 2007 merger of Sime Darby, Golden Hope Plantations and Kumpulan Guthrie established Sime Darby Plantation as the world’s largest palm oil producer, with the potential of producing 8% of the world’s total palm oil output.112 This publicly-listed group, which runs plantations, refineries and biodiesel plants across Indonesia and Malaysia,113 is controlled by the Malaysian government.114

In 2002, Golden Hope bought Unimills, Unilever’s oil refinery in Rotterdam in The Netherlands.123 Unimills is the second largest diversified oil and fats blend manufacturer in Europe124 – an industry that uses large quantities of palm oil. A recent announcement by Sime Darby confirmed that Unilever is a major customer of the Golden Hope (now Sime Darby) Unimills refinery in Rotterdam.125

Sime Darby is a RSPO member.115  The Group is focusing on Indonesia for expanding its business.116  With total plantation assets of nearly 550,000ha, Sime Darby’s nearly 200,000ha of oil palm concessions in Indonesia makes up for more than a third of its total holdings.117 Prior to the merger, Golden Hope controlled a total area of 60,000ha in  West Kalimantan, Indonesia, of which 13,000ha were planted  with oil palms.118 Kumpulan Guthrie owned and operated 56 plantation estates in Indonesia with a total land area of 220,000ha spread over Sumatra, Kalimantan and Sulawesi,119 of which 175,000ha had been planted.120

In 2008, Unilever named the Sime Darby Group, including Golden Hope and Kumpulan Guthrie, as one of its principle suppliers.126 Golden Hope is known to trade palm oil sourced from the Musim Mas Group in Indonesia.127

SIME D A  AR RBY  Y IIS IMPLIC A  AT  T ED IN RECENT  T O OR ONGOIN ING G FOREST  T D DEST RUCT ION ION IN CENT R A  AL L K A  AL LIM A  AN NT   AN  A N

F ir e hots tsp pots

In 2007, Indonesian production for the Sime Darby Group was around 800,000 tonnes of crude palm oil, accounting for  nearly 5% of Indonesia production.121

t io n t a io  nt at  st p l a n t he  if  r st e  he  re ‘W e a r co m p a n y i n M a l a y s i a to o b a l 500 t he G l lo ece i ivve  he  re  r t he U n i itted d b y  he  rd  Aw a r  Aw  ntt o n me n  ro  nvv i r  n t io n s E   at io N a  a m me ( UNE P ) f o r ou r o g r a  ro P r  s..’ t ice s  ac ic  g”” p r ac  n i n g o Bu r n  ro  Ze r “ Ze w p a r t  ow  n o d e n H o p e (   ld G o l  b y )  m e D a r   S i m f  S  of   o

17

MUSIM MAS

UNILEVER’S LINKS TO MUSIM MAS

MUSIM MAS IS A MAJOR PLAYER IN THE PALM OIL

Unilever supplier Golden Hope is known to source palm oil from the Musim Mas Group in Indonesia.134

SECTOR AND IS A MEMBER OF THE RSPO

In 2006, Musim Mas had 126,000ha of landholdings in Indonesia,128 over half of these in Central Kalimantan.129

Unilever trader Cargill is known to source palm oil from the Musim Mas Group in Indonesia.135

In 2007, the Group produced around 300,000 tonnes of crude palm oil, accounting for 2% of Indonesia’s production.130

In 2008, Unilever named Musim Mas as one of its principle suppliers.136

 The company seeks RSPO certification for all of its operations.  This includes certification of the Central Kalimantan concession PT Globalindo Alam Perkasa in September 2009.  As of December 2007, 2,531ha of this concession (15%) was reported planted.131 Greenpeace has evidence that in December 2007, a baby orang-utan was captured in this concession area, indicating that it has high conservation  values (HCV). The concession is located on peat,132 in some areas over 4 metres deep, and had fire hotspots in 2006 and 2007,133 implying recent clearance.

G ING IN ED IN RECEN T OR ONGO  TE  T S IS IMPLIC A  AS MUSIM M A N  AN N T A  AN LIM A  AL L K A  AL R A  TR  TIION IN CEN T RUC T  TR FORES T DES T

a t an habitita  ta n on orang-u t ion  tio a t  ta  forres t De fo ands  tla on on pea tl  tio  ta a ti ores t  fo De f po ts  tsp Fire ho ts  ta i a t an hab t  ta g fores t on orang-u t ing Remainin  tllands s t on pea t res  fo ore iniing f Remain

Oil palm concessio n PT  T G Globalindo  A  Allam Per kasa cont r  ro   ll lle Unilev er  ed by  r s supplier  r M Musim Mas. T he Go ogle Ear t  t   h i m a g e shows signif icant  t f  f or est  t c cov er  r w wit hin t he concess i o n b o u n d a r ies ies. T he f ir st  det ail map shows 2 004 or ang-ut an hab it at  t a a n d d e f  o r  est at ion 2000– 2007. T he sec ond map shows pea t  l a n d a r  e a s and 2006– 2007 f ir e hot spot s. T his s uggest s act iv e def o r est at ion in t he con cession.

18

 ASIAN AGRI

R ONGOING ED IN RECEN T O  TE  T  A C I L P M I S I I R G  AG  IAN A S AN  AS  A N  AN N T A  AN LIM A  AL L K A  AL R A  TR  TIION IN CEN T RUC T  TR FORES T DES T

 ta i a t an hab t  ta  tiion on orang-u t a t  ta ores t  fo De f  tllands  tiion on pea t a t  ta ores t  fo De f s  ts spo t  ts Fire ho t  ta i a t an hab t  ta ores t on orang-u t  fo Remaining f

 ASIAN AGRI IS A MAJOR PLAYER IN THE PALM OIL SECTOR AND IS A MEMBER OF THE RSPO

RSPO member Asian Agri137 is part of the Raja Garuda Mas Group, which owns the pulp and paper giant APRIL.138 Raja Garuda Mas is controlled by Sukanto Tanoto, whom  Forbes lists as the richest man in Indonesia.139 The Jakarta Post  reports that Asian Agri is currently under investigation for  evasion of taxes worth up to Rp1.3 trillion ($140 billion), with the possibility of criminal charges against its top executives.140

 Asian Agri controls over 160,000ha of planted plantation land in Riau, Jambi and North Sumatra:141 100,000ha in concessions and 60,000ha in smallholder areas.142 In 2007, the Group refined about 1.5Mt of crude palm oil, about 9% of Indonesia’s production.143 UNILEVER’S LINKS TO ASIAN AGRI

Unilever trader Cargill is known to source palm oil from the  Asian Agri Group in Indonesia.144 In 2008, Unilever named Asian Agri as one of its principle suppliers.145 Protecting the world’s remaining forests is crucial to efforts to stabilise the climate, to preserve global biodiversity and

Oil palm concessio n PT  T K Kar y  ya   Dewi Put r  r a in Cent r  ra   l Kalimant an con t r  ro   lled by  y U Unilev er  supplier  As  Asian A  Ag gr i. T he lar ge ar ea map shows t hat  t t  t he concession was st ill f or est ed in 2007 . T he f ir st  t d det ail map shows 2 004 or ang-ut an habit at  t a and def or est at ion 2 000– 2007. T he seco nd map shows 2006– 2 007 f ir e hot spot s. T h is suggest s act iv e de f or est at ion in t he c oncession.

 y.. c y o l i ic  po  n p  bu r n o- bu  no  n t c    ic i    r r t  st  s    y y  r e v  a  s a  s  a  h    i h i  r  g  A  ‘A s i a n  A i  g ) e a r i  n d c l le  nd i  g  l(  a n  nt it  n  p l a n i  l l p  r i i n i it it  a t he r i  g e i it he Du r i  n c a l e s mec h a n i ic  se u it  li i s    i i  r  g  A  n  a  i  s  A  , A  ,  g  n    i i t  nt  n  a  l  p e  re  r r o r d.’  nd  r l l a n e a r  me a n s to c l le  e  itt e  i w e b s i  a n A g r   A s i a

19

 ASTRA AGRO

In 2007, the Group produced 921,000 tonnes of crude palm oil, accounting for 5.5% of Indonesia’s production.149

 ASTRA AGRO IS A MAJOR PLAYER IN THE PALM OIL SECTOR

 Astra Agro is controlled by Indonesia’s car manufacturer PT  Astra International.

UNILEVER’S LINKS TO ASTRA AGRO

Unilever trader Cargill is known to source palm oil from the  Astra Agro Group in Indonesia.

During 2007, the Group increased its landholdings by 70% to nearly 400,000ha.146 Of this, some 235,000ha is planted147 (90,000ha in Kalimantan, 107,000ha in Sumatra and 38,000ha in Sulawesi).148 Some 40% remains to be planted.

OING ED IN RECEN T OR ONG  TE GRO IS IMPLIC A T  AG  A A R A  TR  AS T  AS N  AN  A N T  AN LIM A  AL L K A  AL R A  TR  TIION IN CEN T RUC T  TR FORES T DES T

a t an habitita  ta n on orang-u t ion  tio a t  ta  forres t De fo ands  tla on on pea tl  tio a ti  ta ores t  fo De f  ts s po t  tsp Fire ho ts  ta i a t an hab t  ta g fores t on orang-u t ing Remainin

osa  to ari Sen t  ta gro Les t  Ag  T A s P T Oil palm concession er  ve  trrolled b y Unile v an con t  ta  trral Kaliman t in Cen t s  ws ho w he large area map s  Th gro.  T  Ag  trra A s t  As supplier  A ed in 2007.  te ores t  fo  tiill f ere s t  we he concessions  w  th  t t ha t  th  t an  ta s 2004 orang-u t  ws ail map sho w  ta  fiirs t de t he f  Th  T he second  Th 2007.  T  –2  tiion 2000 – a t  ta ores t  fo  ita t and de f hab ta his  Th s.  T  ts spo t  ts  fiire ho t 2007 f  –2 s 2006 –  ws map sho w he concession.  th  tiion in t a t  ta ores t  fo  f e d  t n e c e r s  ts  t s e g g u s

20

R E  V E L I N U  Y  B D E L L O R CONCE S SION S CON T  ULUH B M E  S E K  A L F O A E R  SUPPLIER S IN T HE A AN  T  IN CEN T RAL K ALIMAN Sinar Mas IOI DM-Kuok- Wilmar  AD  A Sime Darb y

Musim Mas gri  Ag sian A  As  A gro  Ag  trra A s t  As  A

21

P AC TS M I  Y    T T I S R E    V V I D O I B CLIM A TE AND OIL SUPPLIERS M L  A P OF 150 N  A  T N  A IN CEN TR AL K ALIM OIL PALM GROUPS

Sinar Mas

IOI

Wilmar

Sime Darby

Musim Mas

Asian Agri

Astra Agro

Share of Crude Palm Oil (CPO) production in Indonesia (2007)

10%

1.1%

3.2%

4.7%

2.0%

9.0%

5.5%

6

3

15

4

6

1

7

Oil Palm Concessions in Central Kalimantan

 Total number of oil palm concessions Total area (ha)

68,845

48,779

255,714

49,086

38,925

26,437

111,810

Peatland Areas

Number of concessions on peatland Actual area on peat (ha)

3

1

12

1

4

8,067

2,981

57,591

1,626

10,039

0

1 0

23,269

 Total peatland carbon  Total store / CO2) equivalent (CO2e)

12.1Mt (44.5Mt CO2e)

3.6Mt (13.2Mt CO2e)

35.7Mt (131.4Mt CO2e)

0.73Mt (2.7Mt CO2e)

11.7Mt (42.9Mt CO2e)

0

58.4Mt (214Mt CO2e)

Number of concessions on deep peat >2m

2

1

2

0

0

0

1

6,597

1,685

6,693

Number of concessions  with deforestation on peatland (2000 to July 2007)

1

1

9

0

4

0

1

Number of concessions  with remaining forest on peatland in July 2007

2

1

7

0

3

0

0

Number of concessions on 2004 orang-utan habitat

5

2

15

2

6

1

4

Number of concessions  with deforestation on orang-utan habitat (2000 to July 2007)

1

1

9

0

4

0

1

Number of concessions  with significant remaining forest on orang-utan habitat in July 2007

3

2

8

0

5

1

3

Area (ha)

0

2,283

0

23,269

Orang-utan Habitat

Forest Fires Hotspots (2006-2007)

Number of concessions 2006

260 fire 201 fire 1117 fire 70 fire 135 fire hotspots hotspots hotspots hotspots hotspots on 5 on 5 on 4 on 3 on 3 concessions concessions concessions concessions concessions

266 fire hotspots on 1 concession

442 fire hotspots on 7 concessions

Number of concessions 2007

62 fire 33 fire 13 fire 3 fire 53 fire hotspots hotspots hotspots hotspots hotspots on 3 on 4 on 7 on 2 on 3 concessions concessions concessions concessions concessions

12 fire hotspots on 1 concession

264 fire hotspots on 7 concessions

22

AN  SIION S IN CEN T RAL K ALIMAN T  OIL PALM CONCE S S UPPLIER S  SU CON T ROLLED B Y UNILE V ER S

Sinar Mas IOI DM-Kuok- Wilmar  AD  A Sime Darb y Musim Mas gri  Ag sian A  As  A  trra Agro  As t

AN: IMPAC T OF OIL  T  N A M I L A K  L A R  T  N E C N I R E  V  O C FORE S T  PPLIER S U  SU  S R E  V  E L I N U  Y  B D E L L O R  T  N O C  SIION S PALM CONCE S S er  ve Fores t co v  tiion a t  ta ores t  fo De f s Oil palm concession

 tiion on oil a t  ta ores t  fo 2007 de f  –2  viidence o f 2000 – E v a  ya a y  ja  itama Guna j  T Bhum ta palm concessions P  trrolled n t  ya Kisma Usaha co gro and P T Se t ya  Ag  A Sinar Mas er suppliers IOI and  ve b y Unile v

23

00 7  20 006– 2  20  2 F O  T  C A P M I : N A  T  N A M I L A K  L A R PEA T LAND S IN CEN T   SIION S  S S E C N O C M L A P L I O O  T  N O I  T  A L E R  S IN PO T   SP  S FIRE HO T  UPPLIER S  SU CON T ROLLED B Y UNILE V ER S  tllands Pea t s  ts spo t  ts Fire ho t s Oil palm concession

Ev idence of  f 2 2006– 2007 f ir e hot s pot s on oil palm concessions i n t he Lake Sembul uh ar ea cont r  ro   lled by  y U Unilev er  r s supplier  r W  W ilmar 

5 Oct ober  r 2 2006: Fir e hot spot s in Cent r  ra   l Kalimant an as document ed by  y M MODIS sat ellit e im ager y –  y – d det ail map shows mult ipl e f ir e hot spot s on c oncessions in t he Lake Sembuluh ar ea cont r  ro   lled by  y U Unilev er  supplier  r W  W ilmar 

24

AN: AN T  M I L A K  L A R  T  N E C N I N O I  T  U B I R  T   S   S AN DI ORANG-U T  N S CON T ROLLED O I  SI  S  S E C N O C M L A P L I O F O  T  C A P IM UPPLIER S  SU B Y UNILE V ER S  tiion  trribu t an dis t  ta Orang-u t  tiion a t  ta ores t  fo De f s Oil palm concession

unas  it Tu  wi t T aal Sa w  wa ns P T Ba w Oil palm concessio  trrolled  it Permai con t  wi t  Allam Sa w  T A Belum and P T  ifican t s sign fi  ws  Wiilmar sho w  W r e i l p p u s r e  ve  v e i l n U  y b E  TE D A T  t..  ita t an hab ta  ta u t g n a r o h    th t i  wi  w p a l r e  ve o v

 trrolled b y ari con t  ta ns P T Unggul Les t o i s s e c n o c m l a p l i O a Makmur  ya usim Mas, P T Kar y M r e i l p p u s r e  ve  v l e i n U P T er supplier IOI, and  ve Unile v  y b d e l l o r  tr  t n o c a i g a Bah sian  As er supplier A  ve rolled b y Unile v  tr  t n o c a r  tr  t u P i  wi  w e D a  ya Kar y  t..  ita t an hab ta  ta  ith orang-u t  wi th erlap w  ve  v o  t n a c i    fi f i n g i s s  ws  w o h gri s  Ag  A

25

Oil palm concessions PT Bhu mitama Guna j  ja ay a  Ag  A gr o contr olled by  y U Unilever  r s supplier  r IIOI and PT Sety a Kis ism ma Usaha contr olled by  y U Unilever  r s supplier  Sinar  r M Mas. The map shows the co ncessio ion ns ar e located on or ang-utan habita t. The photos taken dur ing Gr eenpeace f ield inve stigations document active def or estation on the c oncessions and show the ar ea is impor tant or angutan habitat. Colour ed dots in the map locate wher e two of  f tthe photos wer e taken.

ES T N N  A  T U G N  A OR

26

TIME FOR ACTION: A MORATORIUM ON OIL PALM EXPANSION INTO INDONESIA’S RAINFORESTS AND PEATLANDS to ensure the livelihoods of millions of people who depend on forests.

WHAT DOES THE INDONESIAN GOVERNMENT NEED TO DO?

Forest destruction is responsible for about one fifth of global GHG emissions – Indonesia and the Amazon are by far the two largest sources of GHG emissions from deforestation. Emissions from Indonesia’s degraded peatlands represent 4% of global GHG emissions, but the area of degraded peatlands involved is relatively small – about 10 million hectares or less than 0.1% of the Earth’s land surface.

STOP THE PROBLEM: ZERO DEFORESTATION DEFORESTATION

If we are to prevent dangerous global climate change, we need a global effort to halt forest destruction as well as bringing about a drastic reduction in our use of coal, oil and gas by using energy more efficiently and utilising cleaner  sources of energy. In order to help protect the climate, Greenpeace is calling for  an end to deforestation in Indonesia – the largest source of GHG emissions from deforestation.

Establish a moratorium on forest clearance and peatland degradation and ensure enforcement of the moratorium. START ST ART THE SOLUTION: CLIMATE PROTECTION

Prioritise protection of remaining peat swamp forests and other  forest areas with high carbon storage capacity, biodiversity  values and benefits for indigenous peoples and other local communities. START THE SOLUTION: CUT ONGOING EMISSIONS

Rehabilitate degraded peatland areas with natural and native flora.

WHAT DO UNILEVER AND THE PALM OIL SECTOR NEED TO DO? STOP THE PROBLEM: SUPPORT ZERO

 A halt to further rainforest destruction in Indonesia is also critical to ensuring the future for critically endangered species such as the orang-utan.

DEFORESTATION

Support a moratorium on forest clearance and peatland degradation. START THE SOLUTION: CLEAN UP THE TRADE

Do not trade with those engaged in deforestation and peatland degradation. Inform suppliers that purchasers will no longer buy from companies engaged in forest conversion and peatland degradation.

d  nd l  n  at lt  a e a  pe i  g p  ntte r i  n cou n  i  n  p e t  st  s t    st s  r  i f   a e  be  b  n  a c  ]   ] t ro n g s i g n a l l.. [ It  st ro e a s  be  iu m w i l l l b  ato r iu ce.  nc  ‘A mo r at  A  bo n  if  n a n  r bo  a c f c f  o    y y t  it  i  n u t  rt  r o  po  p  p o w e  ne  n  the e  he  se i e to m a x i m i s u y  it  m  bu  ] to b  , ] t io n [   at io  ad a  g..’ de g r ad e p l a n n i n g  se d-u s  nd l  n of  l  a  y  g e t    at a    r r t  st  s    m m  r e t  r r e  ge  g  n o  lo  l  a  rtt of  a e p a r  be eed s to b  ne  iu m n  ato r iu  A mo r at  h e  of tt h  e r  of   st e  n i st  i n  M  n    a a  i  s  e  n  o d    nd n  I  e    h h t  y d b  ed  s e d o r   nd  , e n  ntt , e  e m e n  at e  stt at  a s  o g y a k a r t a Y  7  07  stt 2 0 0 u s  gu u g  , Au  ntt , A  o n m e n  r  v i r   nv  E n

‘The simplest and most effective measure to prevent a further increase  in fires and CO 2 emissions is by conservation of remaining peat  swamp forests and rehabilitation of degraded peat swamp forests.’ Wetlands International, 2006 

28 PICTURE CAPTIONS

p15

Cover  16 October 2006: Fire on Central Kalimantan oil palm plantation ©www.films4.org 4 October 2007: Haze from plantation fires clouds the Kapuas River in Central Kalimantan ©Greenpeace/Behring 13 November 2006: Orang-utan found on oil palm concession PT Mustika Sembuluh in Central Kalimantan now controlled by Unilever supplier Wilmar – rough treatment by plantation workers has left it with a broken arm ©Greenpeace 6 August 2007: Digger at work on oil palm concession PT Sarana Titian Permata in Central Kalimantan now controlled by Unilever supplier Wilmar – the sign on tree reads ‘Do not hunt the wildlife’ ©www.films4.org

6 August 2007: Female agile gibbon with broken nose captured by plantation  workers on oil palm concession PT Kerry Sawit Indonesia in Central Kalimantan controlled by Unilever supplier Wilmar – the species is listed as endangered by the IUCN ©www.films4.org p16 Google image of the Unimills refinery in Rotterdam ©Google Earth p17 27 December 2007: Orang-utan baby caught by plantation workers on oil palm concession PT Globalindo Alam Perkasa in Central Kalimantan controlled by Unilever supplier Musim Mas – the baby died soon after this image was

pp1-2

taken ©Greenpeace

6 August 2007: Deforestation on oil palm concession PT Sarana Titian

Google image of oil palm concession PT Globalindo Alam Perkasa in Central

Permata in Central Kalimantan now controlled by Unilever supplier Wilmar 

Kalimantan controlled by Unilever supplier Musim Mas – remaining forested

©www.films4.org

orang-utan habitat on peatland area is clearly visible ©Google Earth

Unilever products ©Greenpeace/Novis p20 pp6-7

Google image of the Lake Sembuluh region of Central Kalimantan overlaid

25 August 2006: Two photos of burning peatland oil palm concession areas

 with concession areas controlled by Unilever’s palm oil suppliers ©Google

in Riau – use of fire for land clearance is illegal but common in the industry,

 Earth

and every year cause a thick smo g-like haze over the entire region, threatening the health of millions of people and contributing to the problem of

p23

climate change ©Greenpeace/Dithajohn

5 October 2006: Fire hotspots in Central Kalimantan as documented by

13 November 2006: Orang-utan baby trapped by workers on an oil palm

MODIS satellite imagery ©Jeff Schmaltz, Earth Observatory/MODIS Rapid

plantation in Central Kalimantan – the baby’s mother was found dead ©BOS

 Response team

Foundation 1 October 1997: Sumatran rainforest on fire due to climate change effects

p25

from El Niño ©Lily/Greenpeace

February 2008: PT Bhumitama Gunajaya Agro oil palm concession in Central Kalimantan controlled by Unilever supplier IOI shows clear evidence of

p9

drainage – the concession has peatland areas and is located on o rang-utan

26 September 2006: Orang-utan marooned on deforested oil palm

habitat ©Greenpeace

concession in Central Kalimantan ©BOS International 

15 April 2008: Baby orang-utan captured in the Pangkalan Bun area near  palm oil concessions controlled by Unilever suppliers IOI and Sinar Mas

p11

©Greenpeace

13 April 2008: Crane draining peatland in the vicinity of oil palm concession

13 April 2008: Isolated orang-utan nest in Central Kalimantan in the vicinity of

PT Tapian Nadenggan controlled by Unilever supplier 

oil palm concession PT Ta Tapian pian Nadenggan controlled by Unilever supplier 

Sinar Mas ©Greenpeace

Sinar Mas ©Greenpeace

p12

p27

Google image of the Cargill refinery in Rotterdam ©Google Earth

14 April 2008: Sunset over threatened orang-utan habitat inside a concession controlled by Unilever supplier Sinar Mas ©Greenpeace

p13 February 2008: Oil palm concession PT Setya Kisma Usaha in Central

Back cover 

Kalimantan controlled by Unilever supplier Sinar Mas shows clear evidence of

15 April 2008: Baby orang-utan captured in the Pangkalan Bun area near 

burning – the concession has peatland areas and is located on orang-utan

palm oil concessions controlled by Unilever suppliers IOI and Sinar Mas

habitat ©Greenpeace

©Greenpeace

13 April 2008: Road building in the vicinity of oil palm concession PT Tapian Nadenggan in Central Kalimantan controlled by Unilever supplier Sinar Mas ©Greenpeace

p14 12 April 2008: Crane clearing forest area on oil palm concession PT Bhumitama Gunajaya Agro in C entral Kalimantan controlled by Unilever  supplier IOI ©Greenpeace

29 ENDNOTES

1

2 3 4 5

6 7

8

9 10

11

12

13

14 15

16 17 18

19 20 21 22

Unileve Unile verr uses uses 1.3M 1.3Mtt of palm palm oil or palm palm oil derivative every year. Of this, about 800,000 tonnes is for food use and the remainder is for  industrial use, of which approximately 300,000 tonnes comes from palm kernel oil (Personal communication, 10 April 2008). This represents about 3% of global palm and palm kernel oil production in 2007 (42.4Mt). Source: Oilworld ISTA Mielke (2008) ‘‘Oilworld statistics update’ 14 March 2008’ together with an estimate of palm kernel oil based on FAO 2006 figures. Clay (2005) Clay (2005) See Se e tab table le in th this is do docu cume ment nt Adam Har Harriso rison, n, WWF WWF,, lette letterr to Gree Greenpea npeace, ce, 19 October 2007; this is equivalent to 17Mt given that global production for 2007 is 38.13Mt (Source: Oilworld ISTA Mielke (2008) ‘Oilworld statistics update’ 14 March 2008) FAO (2006): 56 Vegeta Veg etable ble oils oils,, here here defi defined ned as rapes rapeseed eed oil, soyabean oil, sunflower seed oil and palm oil, except in Japan where it excludes sunflower  seed oil, will rise by 31.7Mt; palm oil by 14.9Mt. OECD-FAO (2007b) cf Annu Annual al Repor Reports ts of Sin Sinar ar Mas Mas,, Asia Asian n Agri Agri (RGM), Wilmar, Musim Mas, Genting, IOI and others For instanc nstance, e, conce concessi ssions ons on peat peatlan lands ds over over 2 metres deep or use of fire for clearance. Eg Criterio Criterion n 7.3 which which prohibits bits conve conversi rsion on of areas with High Conservation Values (See RSPO ‘Principles and Criteria for Sustainable Palm Oil Production’ (2007)  www.rspo.org/resource_centre/RSPO%20Princi ples%20&%20Criteria%20Document.pdf Unilever’ ever’ss contr contribut ibution ion to  Review of EU Biofuels  Directive Public Consultation Exercise, April-July 2006, Energy and Transport DirectorateGeneral, European Commission WWF (2005) (2005) Fores Forestt cover cover 2000 2000 is base based d on LANDSAT ETM imagery 1999 and 2000, modified by images from 2002. Forest cover  2010 and 2020 is a projection based on LANDSAT imagery 2000. WWF (2005) (2005) Orang-u Orang-utan tan distribut stribution ion 1930 and and 1999 based Rijksen and Meijaard (1999) Modified by removing occurrence above 500 m asl, except for Crocker Range National Park, Mt. Kinabalu and some areas in southeast Sabah. Orang-utan distribution 2004 and 2020 in Kalimantan based on ‘Orang-utan PHVA (Population and Habitat Viability Assessment)’ (2004) Modified by removing occurrence above 500 m asl. Orang-utan distribution 2004 and 2020 in Sabah based on Ancrenaz et al. (2005) FAO (2 (200 005) 5) Greenpea Gree npeace ce SE Asia, a, ‘Indone ‘Indonesia sia makes makes it to to 2008 Guinness World Records as fastest forest destroyer on the planet’ 3 May 2007  www.greenpeace.org/seasia/en/news/indonesia -makes-it-to-2008-gui FWI/GFW FWI/ GFW (2002): (2002): 14 citing citing Holme Holmess (2000) (2000) Nelleman l eman et al al (2007 (2007)) 43 2.8Gt CO2 CO2 per year year through through defore deforesta station tion during the 1990s; 3Gt CO2 through deforestation and fossil fuel use. WRI (2007) Climate Analysis Indicators Tool vs 4.0 See Cooking the climate Hooije Hoo ijerr et al (200 (2006): 6): 29 IPCC IPC C WGII WGIII (200 (2007): 7): 3 Based Base d on emission emissionss from defore deforesta station tion of 8.52Gt.IPCC WGIII (2007): 104 ‘Figure 1.2: Sources of global CO2 emission emissions, s, 1970-2004 (only direct emissions by sector)’. Indonesia’s

23 24 25 26 27 28 29 30 31 32 33 34 35

36

37 38

39

40 41 42

43 44

45

46

47 48 49

peatland emissions are 1.8Gt/year. Hooijer et al (2006): 29. There are 27.1 million hectares of peatlands peatlan ds in SE Asia, a, 83% of this this is in Indonesia. 10.6 million hectares (39%) of peatland in SE Asia was deforested in 2000.  Accounting for continued deforestation at a rate of 1.5%/year, the deforested peatland area in 2006 is around 45% of total peatland area, or  12.1 million hectares. 83% of 12.1 = 10 million of peatland deforested and degraded. Source: Hooijer et al (2006): 9, Wetlands International (2006a, 2006b). CIA (2007) gives global land area as 15 billion hectares. So Indonesia’s degraded peatlands equal 0.07% of the Earth’s land surface. Hooijijer Hoo e r et et al (200 (20006) 06):: 17 IUCN Red Red List List Databas Database e (2007) (2007) ‘Red ‘Red List of  Threatened Species’ www.iucnredlist.org Species’ www.iucnredlist.org Nelle Ne llema man n et al (20 (2007) 07) 9 Nelle Ne llema man n et al (20 (2007) 07) 9 Nelle Ne llema man n et al (20 (2007) 07) 9 WWF (20 2005 05)) FWII (20 FW (2006 06)) Wahy Wa hyun unto to et (20 (2006) 06) FWII (20 FW (2006 06)) NASA/Uni NASA/ Universit versityy of Maryla Maryland nd (2002) (2002) Nelle Ne llema man n et al al (2007) (2007):: 28 FAOS FA OST TAT (200 (2008) 8) http://faostat.fao.org accessed  April 2008 Cited Cite d in IFC (2007) (2007):: 208: accor according ding to to the industry data 3% of all oil palm plantations are established in primary forests and 63% in secondary forest and vegetation. 5.5 million llion hectar hectares es in 2005. 2005. IPOC IPOC (2006). (2006). 6.1 6.1 million hectares in 2006. Suharto (2007):4 ‘Area and production by category of producer, preliminary data for 2006’ Lego Le gowo wo (20 (2007 07)) Colchester Colchest er et et al (2006): 26, 26, Table Table 1.2 1.2 ‘Provincial ncial government plans to expand oil palm plantations’ Painter, James James (2007) ‘Losing land to to palm oil in Kalimantan’  BBC News 3 August 2007 http://news.bbc.co.uk/2/hi/asiapacific/  6927890.stm FWII (20 FW (2006 06)) Nelle Ne llema man n et al al (2007) (2007):: 9 AFP (2007) (2007) ‘Activists: vists: Palm oil workers workers killing ling endangered orangutans’ The Manila Times 26 July 2007 www.manilatimes.net/national/  2007 www.manilatimes.net/national/  2007/july/26/yehey/opinion/20070726opi8.html Michelle Desilets Desilets (2008) email email communic communication, ation, 8  April 2008 Photogra Phot ographic phic,, video video and rescue rescue databas database e evidence held by Greenpeace – examples include Wilmar, Musim Mas and Sinar Mas Decree Decr ee of Ministe Ministerr of Forestry Forestry and and Plantati Plantation on Number 376/1998, dated 8 April 1998. Decree no 376/1998 issued by the Ministry of Forestry and Plantations, 8 April 1998, gives criteria for  choosing areas for oil palm plantations: ‘plantation developments on peat soils deeper  than two metres are not allowed’ Presiden Pres identia tiall Decree Decree No. 32/1990, 32/1990, source: source: Walhi Walhi et al (2006). Presidential decree no 32/1990 on ‘Management of Protected Areas’ 25 July 1990:  Article 10 specifies specifies that that ‘upstream ‘upstream swamp and peatlands deeper than 3 metres should be protected’. See table in this this docu document ment See Cooking the Climate Forestry Fore stry Act No. No. 41/1999; 41/1999; Plantatio antation n Law 18/2004, article 26 states: ‘any entrepreneur of plantation business is not allowed to open and/or manage its land by burning it, which can result in pollution and destruction of

environment’. Source: Colchester et al (2006) 50 NASA/Univ NASA/Univers ersity ity of of Marylan Maryland d (2002) (2002) 51 Colches c heste terr et al al (2006) (2006) 52 Evid Evidenc ence e held by Green Greenpea peace ce – eg Sinar Sinar Mas, Mas,  Wilmar, Astra Agro 53 Pers Personal onal commu communic nicati ation, on, 10 April April 2008 2008 54 Carg Cargill, ill, ‘Cargil ‘Cargill History History and Current Current Status Status’’  www.cargill.com/news/issues/palm_current.htm #TopOfPage accessed 29 October 2007; Greenpeace investigation 2006-2007 55 Carg Cargill, ill, ‘Carg ‘Cargill ill and and Palm Oil Produc Production tion’’  www.cargill.com/news/issues/palm_roundtable. htm accessed 29 October 2007 56 Forbes ‘The largest private companie companiess in 2005: 1: Cargill’  www.forbes.com/lists/2005/21/5ZUZ.html accessed 29 October 2007 57 Evid Evidenc ence e held held by by Green Greenpea peace ce 58 Evid Evidenc ence e held held by by Green Greenpea peace ce 59 Evid Evidenc ence e held held by by Green Greenpea peace ce 60 US Paten Patentt No. 2006014 20060141102 1102 is eviden evidence ce of this. Free Patents Online ‘Frozen confection and process for manufacturing such’  www.freepatentsonline.com/20060141102.html accessed 15 October 2007 61 RSP RSPO O ‘RSPO R SPO Memb Member ers’ s’  www.rspo.org/members_list.aspx?catid=37&ddlI D=39&membercat=13 accessed 16 April 2008 62 1.6Mt of of CPO (Source (Source:: Golden Golden Agri-Reso Agri-Resourc urces es (2008)) out of 16.7Mt Indonesia 2007 production (Source: Oilworld ISTA Mielke ‘Oilworld statistics update’ 14 March 2008) 63 Golden d en Agr Agrii-Res Resour ource cess (2008) (2008) 64 Golde Golden n AgriAgri-Reso Resourc urces es (2008 (2008)) 65 212,5 212,589ha 89ha (Sumatra) (Sumatra);134, ;134,922ha 922ha (Kalimantan mantan); ); 12,222ha (Papua) Golden Agri-Resources ‘Our  Business’ www.goldenagri.com.sg/  Business’  www.goldenagri.com.sg/  ourbusiness.html accessed 16 April 2008 66 Golde Golden n AgriAgri-Reso Resourc urces es (2008 (2008)) 67 Golde Golden n Agri-Reso Agri-Resourc urces es (2008). (2008). 200,000h 200,000ha a in Kalimantan (acquired), 100,000ha in Kalimantan (in acquisition), 1,000,000ha in Papua (in acquisition). 68 Cop Copyy held held by Gre Green enpea peace ce 69 Gre Green enal all (200 (2007): 7): 1 70 Gre Green enal all (200 (2007): 7): 8 71 Golde Golden n Agri-Re Agri-Resou source rcess (2008): (2008): 26 72 From 307,000 307,000ha ha in 2007, 2007, sourc source: e: Greena Greenallll (2007): 9 73 Gre Green enal all (200 (2007): 7): 1 74 Sara Webb Webb ‘APP ‘APP Says Debt Debtss Now Total Total $13.4 $13.4 Billion; Creditors May Not Get Plan Until March’ 10 April 2001; Tom The Wall Street Journal 10  Wright ‘Asia Pulp & Paper Sees Outline $13B Debt Plan By November’, Dow Jones Newswires, Jakarta, 30 August 2001. Both cited in van Gelder (2001). 75 Golde Golden-Ag n-Agriri Reso Resourc urces es (1999 (1999)) 76 Sina Sinarr Mas (2004) (2004) and and Sinar Sinar Mas Mas (2006) (2006) The Group’s products consist of refined palm products such as cooking oil, fat and margarine, and crude palm oil (CPO), palm kernel (PK) and palm kernel oil (PKO) 77 Sina Sinarr Mas (2004 (2004)) and and Sinar Sinar Mas (2006 (2006)) 78 IOI Announc Announceme ement nt on Kuala Kuala Lumpur Lumpur Stock  Stock  exchange, ‘Proposed acquisition of equity interests in Sarawak plantation companies’ 18 March 2008 www.bursamalaysia.com/  2008 www.bursamalaysia.com/   website/bm/listed_companies/company_annou ncements/announcements/historical.jsp 79 IOI Announc Announceme ement nt on Kuala Kuala Lumpur Lumpur Stock  Stock  exchange, ‘Proposed joint venture for oil palm cultivation in Indonesia’ 19 November 2007  www.bursamalaysia.com/website/bm/listed_co

30

80

81

82

83

84

85

86

87

88

89 90 91 92

93

94

95

96

mpanies/company_announcements/announce ments/historical.jsp IOI Oleoche Oleochemica micall Industrie Industriess ‘History ‘History’’  www.ioioi.com.my/history.asp accessed 16 April 2008 IOI Group Group ‘Plan ‘Plantat tation ion Stati Statistics’ stics’  www.ioigroup.com/business/busi_plantstats.cfm accessed 10 April 2008 790,000 790,0 00 tonnes tonnes of crude crude palm oil oil (Source: (Source:  www.ioigroup.com/business/busi_plantstats.cfm ) out of 38.13Mt (Source: Oilworld ISTA Mielke (2008)) IOI Group Group ‘Plan ‘Plantat tation ion Stati Statistics’ stics’  www.ioigroup.com/business/busi_plantstats.cfm accessed 10 April 2008 Greenpea Gree npeace ce estima estimate te based based on ratio ratio of CPO to Palm Kernel Oil 2006 global production FAOSTAT (2008). Global palm kernel oil production therefore is 4.23Mt in 2007. Based Base d on IOI’s plantat plantations ions in Indones Indonesia ia accounting for 22% of all their plantation area. Source: IOI Announcement, PROPOSED  ACQUISITION OF EQUITY INTERESTS IN SARAWAK PLANTATION COMPANIES (“PROPOSED ACQUISITION”), 18 March 2008 IOI Group Group ‘Loders ‘Loders Crokla Croklaan an milestones estones’’  www.ioigroup.com/corporateInfo/corp_lodersmil estone.cfm accessed 2 April 2008 Unipamol Unip amol Mala Malaysi ysia Sdn. Sdn. Bhd and and Pamol Pamol Plantations Sdn Bhd (the Pamol Group) via IOI subsidiary Palmco. Source: Unilever ‘Unilever  sells shareholding in Malaysian palm oil estates to Palmco’ Press release 2 December 2002 http://www.unilever.com/ourcompany/  newsandmedia/pressreleases/2002/palm.asp Unilever ever ‘Sale of Loders Loders Crokla Croklaan an imminent’ nent’ Press release 30 August 2002  www.unilever.com/ourcompany/newsandmedia/  pressreleases/2002/loders.asp Evidenc Evid ence e held held by Gree Greenpea npeace ce Personal Pers onal commu communic nicati ation, on, 10 April April 2008 2008 Wilm Wi lma ar (200 (2007) 7) ADM claims claims to hold hold a 6.7% inter interest est in Wilmar lmar, however through its 19.6% holdings in Wilmar  Holdings Pte Ltd, ADM has an effective interest of 16.2% shares. Wilmar, ‘Corporate Presentation 14 December 2006’  www.wilmar.co.id/investor/WilmarMergerPresent ation14.12.06.pdf The Kuok Kuok group group has has a 31% stake stake in Wilmar  Wilmar  International. Additionally, Wilmar is substantially owned by Wilmar Holdings Pte Ltd which is, in turn, substantially owned by Messrs Kuok  Khoon Hong and ADM. Wilmar, ‘Corporate Presentation 14 December 2006’  www.wilmar.co.id/investor/WilmarMerger  Presentation14.12.06.pdf , Wilmar, ‘Wilmar’s compliance placement receives overwhelming response from local and global institutional investors’ Press Release 7 August 2006  www.wilmarinternational.com/news/press_releas es/ Placement%20News%20Release%20Final %2007.08.06.pdf Wilmar, Wilma r, ‘Wilmar lmar Embark Embarkss on Rapid Expans Expansion ion Plans’ Press release 28 August 2006; Wilmar  International, ‘Wilmar secures all approvals for  US$4.3 billion merger and acquisitions’ Press release 22 June 2007 Wilmarr (2006): Wilma (2006): 9, PPB, ‘PPB PPB Plantati antations ons overview’ www.ppbgroup.com/ppb/  overview’  www.ppbgroup.com/ppb/  2_business/2_2_1_palm.htm accessed 22 October 2007 In 2007, 2007, the Wilmar lmar Group Group produced produced 1.35Mt 1.35Mt of of CPO (Source: Wilmar (2007). Global production is 38.13Mt of CPO in 2007 (Source: Oilworld ISTA Mielke (2008)). Thus, the group accounts

for 3.5% of global production. 40% of Wilmar’s mature concessions are located in Indonesia (Wilmar (2007)). Assuming the same productivity in Indonesia as in Malaysia, these accounted for  540,000 tonnes of CPO production. Indonesia’s total production in 2007 amounted to 16.7Mt (Oilworld ISTA Mielke (2008)) 97 Wi Wilm lmar ar (2 (200 007) 7) 98 Forb Forbes, es, ‘South ‘Southeas eastt Asia’s 40 richest’ richest’  www.forbes.com/lists/2005/09/07/southeastasia-richest-cz_05sealand.html accessed 31 October 2007 99 ADM ‘AD ‘ADM M Media Media FA FAQs Qs’’ www.admworld.com/  naen/pressroom/media.asp accessed 29 October 2007 100 ADM ‘Crude ‘Crude Palm Oil Futures’ Futures’ www.e www.eadm.com/futr/futr_display.asp accessed 29 October 2007 101 Evidenc Evidence e held by Greenpe Greenpeace ace 102 Wilmar Wilmar,‘Wilmar’ ,‘Wilmar’s compliance placement receives receives overwhelming response from local and global institutional investors’ Press release 7 August 2006 www.wilmar-international.com/news/  2006  www.wilmar-international.com/news/  press_releases/Placement%20News%20Releas e%20Final%2007.08.06.pdf 103 Wilmar Wilmar,‘Wilmar’ ,‘Wilmar’s compliance placement receives receives overwhelming response from local and global institutional investors’ Press release 7 August 2006 www.wilmar-international.com/news/  2006  www.wilmar-international.com/news/  press_releases/Placement%20News%20Releas e%20Final%2007.08.06.pdf 104 Indu Industry stry Sources Sources 105 Ster Stern n (2006) (2006) 106 Unilev Unilever er ‘Our ‘Our Brands’ Brands’  www.unilever.co.uk/ourbrands/  accessed 26 October 2007 107 Port of London Authority Authority (2007) 108 Port of London Authority Authority (2007) 109 Pakista Pakistan n Customs Customs (2007) (2007) www.cbr.gov.pk/   www.cbr.gov.pk/  newcu/igm/kpqi367.pdf 110 Evidenc Evidence e held by Greenpe Greenpeace ace 111 Persona Personall communication, communication, 10 April 2008 112 Sime Darby ‘Planta ‘Plantation tion Overview’ Overview’ http://plantation.simedarby.com/Sime_Darby_Pl antation_Overview.aspx accessed 16 April 2008 113 Golde Golden n Hope (2006) (2006) 114 The companies companies are controlled controlled by governmentgovernmentmanaged fund manager Permodalan Nasional Bhd. Unimills, ‘3 Malaysian government-linked palm oil entities to fuse, creating world’s largest producer’ Press release 9 January 2007  www.unimills.com/searchnews_en.html?id=49& articleType=2 115 ‘RSP ‘RSPO O Members Members’’ www.rspo.org/members _list.aspx?catid=37&ddlID=39&membercat=13 accessed 16 April 2008 116 Unimills Unimills,, ‘3 Malaysian government-l government-linked inked palm oil entities to fuse, creating world’s largest producer’ 9 January 2007 www.unimills.com/  2007  www.unimills.com/  searchnews_en.html?id=49& articleType=2 117 Sime Darby ‘Planta ‘Plantation’ tion’  www.simedarby.com/our_businesses/  plantation.aspx accessed 8 April 2008 118 Golde Golden n Hope (2006): (2006): 77 119 Guth Guthrie rie (2006): (2006): 231, 231, 56 120 Guth Guthrie rie(2006 (2006): ): 56 121 Sime Darby claim claim 6% of global production production in 2007 (Source: www.simedarby.com/  (Source: www.simedarby.com/  investor_relations/ plantation.aspx ) which is equal to around 2.3Mt of CPO. Global production was 38.13Mt of CPO in 2007 (Source: Oilworld ISTA Mielke (2008)). Assuming a 1.8:1 ratio for Malaysia’s production compared to Indonesia’s production (based on Sime Darby’s total daily processing capacity of its palm oil mill in Malaysia of 2.09Mt FFB vs

Indonesia of 1.15Mt FFB (Source:  www.simedarby.com/ our_businesses  /plantation.aspx ), Sime Darby’s Indonesian production would be 800,000 tonnes or 4.7% of total Indonesian production. 122 Abstract of Paper for Session Session VII at the the 5th Roundtable Meeting on Sustainable Palm Oil (RT5), ‘Tracking and tracing for commodity grade sustainable palm oil’ 7 November 2007  www.rspo.org/resource_centre/(4)%20RT5 (VII)_GH-Unilever_Tracking%20SPO_2.pdf Sime Darby ‘Sime Darby To Invest 34 Millions Euros In Oil & Fats Business in Europe’ Press release 2  April 2008 www.simedarby.com/  2008  www.simedarby.com/  newsroom/latest_news.aspx 123 Golden Hope, Hope, ‘Corporate ‘Corporate Profile’ Profile’  www.goldenhope.com.my/corporate.html accessed 31 October 2007 124 Unimills Unimills,, ‘History of Unimills Unimills’’  www.unimills.com/  historyofunimills.html accessed 20 October  2007 125 Sime Darby ‘Sime Darby Darby To Invest Invest 34 Millions Euros In Oil & Fats Business in Europe’ Press release 2 April 2008 www.simedarby.com/  2008  www.simedarby.com/  newsroom/latest_news.aspx 126 Personal communica communication, tion, 10 April 2008 127 Evidenc Evidence e held by Greenpe Greenpeace ace 128 Musim Mas ‘Announcement Announcement of upcoming upcoming assessment’ 18 January 2008  www.rspo.org/resource_centre  /RSPOINFORMMM2.pdf 129 125,722 ha landholdings landholdings in Indonesia; Indonesia; 70,216ha Central Kalimantan (56%)  www.rspo.org/resource_centre/  RSPOINFORMMM2.pdf 130 300,000 tonnes tonnes of CPO (Source: (Source:  www.rspo.org/resource_centre/  RSPOINFORMMM2.pdf) out of 16.7Mt of CPO in 2007 (Source: Oilworld ISTA Mielke (2008)) 131 Musim Mas ‘Announcement Announcement of upcoming upcoming assessment’ 18 January 2008  www.rspo.org/resource_centre/  RSPOINFORMMM2.pdf 132 Wah Wahyun yunto to et (2006) 133 NASA/Univ NASA/University ersity of Maryland Maryland (2002) 134 Evidenc Evidence e held by Greenpe Greenpeace ace 135 Evidenc Evidence e held by Greenpe Greenpeace ace 136 Personal communica communication, tion, 10 April 2008 137 From 235,176ha in 2006 to 394,067ha 394,067ha in 2007. Astra Agro ‘Directors’ Statement’ 31 December 2007  2007  www.astra agro.co.id/   AALI_LK%202007.pdf 138 Sukanto Ta Tanoto noto www.sukantotanoto.net/   www.sukantotanoto.net/  sukanto-tanoto-rgm-today.htm accessed 16  April 2008 139 RGM Intern International ational www.rgmi.com  www.rgmi.com accessed 16  April 2008 140 Forbes Billionaires Billionaires – Sukanto Tanoto Tanoto   www.forbes.com/ lists/2008/10/billionaires 08_Sukanto-Tanoto_USK7.html accessed 16  April 2008 141 Tempo ‘Tax ‘Tax Officials to Hunt Down Sukanto Sukanto  Tanoto’ 16 May 2007 www.tempointeraktif.com 2007 www.tempointeraktif.com / hg/nasional hg/nasional /2007/05/16/br /2007/05/16/brk,20070516k,20070516100106,uk.html, Jakarta Post (2007) ‘Tax office probe into alleged AAG fraud nears conclusion’ 1 December 2007 http://old.thejakartapost. com/yesterdaydetail.asp?fileid=20071201.B08 and Jakarta Post (2008) ‘Five Indonesians on ‘Forbes’ rich list’ 8 March 2008  www.thejakartapost.com/news/2008/03/07/five -indonesians-039forbes039-rich-list.html 142 Asian Agri ‘Plantati antation’ www.asianagri.com/  on’ www.asianagri.com/  index.php?option=content/08&head=head/08&  view=sub/01 accessed 16 April 2008 143 Asian Agri ‘Introduction ntroduction to Asian Agri’ Agri’

31   www.asianagri.com /index.php accessed 16  April 2008 144 1.5Mt of CPO (Sourc (Source: e: www.asianagri.com/   www.asianagri.com/  index.php?option=content/08&head=head/08&  view=sub/03 ) out of 16.7Mt of CPO in 2007 (Source: Oilworld ISTA Mielke (2008)) 145 Evidenc Evidence e held by Greenpea Greenpeace ce 146 Personal communica communication, tion, 10 April 2008 147 Astra International International ‘2007 Full Year Year Financial Financial Statements’ www.astra.co.id/news.asp Statements’  www.astra.co.id/news.asp 148 www.astra-agro.co.id/about_business.htm 148  www.astra-agro.co.id/about_business.htm 149 0.92M 0.92Mtt of CPO (Source: (Source: www.astra-agro.co.id/   www.astra-agro.co.id/  Production-Monthly-07.htm ) out of 16.7Mt of CPO in 2007 (Source: Oilworld ISTA Mielke (2008)) 150 Analysis is based based on several several data sets. Palm Palm oil concession boundaries based on FWI (2006; peatland distribution maps based on Wahyunto et (2006); peatland carbon store based on 600 tonnes/ha/C per metre depth source Hooijer et al (2006); deforestation data based on maps developed by Sarvision–Wageningen University in collaboration with the Indonesian Ministry of Forestry (2007); hotspots based on NASA/  University of Maryland (2002); orang-utan habitat based on WWF (2005) REFERENCES  Ancrenaz M, Gimenez O, Ambu L, Ancrenaz K,  Andau P, et al. (2005) ‘Aerial surveys give new estimates for orang-utans in Sabah, Malaysia’. PLoS Biol 3(1): e3.  Asian Agri website: www.asianagri.com website: www.asianagri.com  Astra Agro website: www.astra.co.id website: www.astra.co.id BBC News website: http://news.bbc.co.uk/  Bursa Malaysia website:  www.bursamalaysia.com Cargill website: www.cargill.com website:  www.cargill.com CIA (2007) The World Factbook  Central Intelligence  Agency, USA. www.cia.gov/library/publications/theUSA. www.cia.gov/library/publications/the world-factbook/geos/uk.html accessed 23 October  2007 Clay, Jason (2005) ‘Exploring the links between international business and poverty reduction: a case study of Unilever in Indonesia’ Oxfam GB, Novib, Unilever, and Unilever Indonesia joint research project Colchester et al. (2006)  Promised Land. Palm Oil and  Land Acquisition in Indonesia: Implications for Local  Communities and Indigenous Peoples Forest Peoples Programme, Perkumpulan Sawit Watch, HuMA and World Agroforestry Centre. FAO (2005) ‘Global Forest Resources Assessment 2005’ http://www.fao.org/forestry/site/fra2005/en/  FAO (2006) ‘World agriculture: towards 2030/2050’ Interim report, Rome, June 2006 ftp://ftp.fao.org/docrep/fao  /009/a0607e/a0607e00.pdf Forbes website: www.forbes.com website:  www.forbes.com Friends of the Earth (2001)  Paper Tiger, Hidden  Dragons - The responsibility of international financial   institutions for Indonesian forest destruction, social  conflict and the financial crisis of Asia Pulp & Paper  Friends of the Earth May 2001 FWI (Forest Watch Indonesia) (2006) ‘Oil palm concession map’, copy held by Greenpeace FWI/GFW (Forest Watch Indonesia/Global Forest  Watch) (2002) The State of the Forest: Indonesia . Bogor, Indonesia: Forest Watch Indonesia, and  Washington DC: Global Forest Watch Golden Agri-Resources (2008) ‘Golden Era for  Golden Agri – Financial results presentation, Year  ended 31 December 2007 http://gar.listedcompany.com/newsroom/GAR9-2502-08-PowerPointPresentation.pdf Golden Agri-Resources website:  www.goldenagri.com Golden Hope (2006) ‘Annual Report 2006’

announcements.bursamalaysia.com/EDMS%5Csub  web.nsf/LsvAllByID/C3EAE1F72C4413544825  web.nsf/LsvAllBy ID/C3EAE1F72C441354482571F5 71F5 0034BC07?OpenDocument Golden Hope website: www.goldenhope.com website:  www.goldenhope.com Golden-Agri Resources (1999) Prospectus 2 July 1999 Greenall, Michael (2007) ‘Golden Agri-Resources’ BNP Paribas Corporate & Investment Banking 4 April 2007 Greenpeace International (2007) ‘How the palm oil industry is cooking the climate’ November 2007  www.greenpeace.org/raw/content/international/  press/reports/cooking-the-climate-full.pdf Guthie website: www.guthrie.com website:  www.guthrie.com Guthrie (2006) ‘Annual Report 2006’ ir.wallstraits.net/guthrie/pdf_files/KumpulanGuthrie_AR _FY2006.pdf accessed 20 October 2007 Hooijer, A, M Silvius, H Wösten, H and S Page  PEAT-CO2, -CO2, Assessment of CO2 emissions (2006) PEAT from drained peatlands in SE Asia Delft Hydraulics report Q3943 7 December 2006  www.wetlands.org/ckpp/publication.aspx?ID=f84f16 0f-d851-45c6-acc4-d67e78b39699 IFC (2007) ‘Biodiversity and agricultural commodities program (BACP): Program Appraisal Document’ International Finance Corporation. 12 April 2007  www.gefweb.org/uploadedFiles/Documents/  Project_Proposals_For_Endorsem/Global_BACP.pdf IOI group website: www.ioigroup.com website: www.ioigroup.com IPCC, Working Group III, 2007: Climate Change  2007: Mitigation. Contribution of Working Group III to the Fourth Assessment Report of the  Intergovernmental Panel on Climate Change B. Metz, O.R. Davidson, P.R. Bosch, R. Dave, L.A. Meyer  (eds), Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA. IPOC (Indonesian Palm Oil Commission) (2006)  Indonesian Palm Oil Directory 2006 Area and Production of Palm Oil by Province and Condition of Crops in Indonesia 2005’citing BPS-Statistics Indonesia and Directorate General of Estate Crops Legowo, Evita H. (2007) ‘Blue print of biofuel development’ Presentation on behalf of the Ministry of Energy and Mineral Resources, Republic of Indonesia, at the Forum on palm oil biodiesel and sustainability. Jakarta, 15 May 2007 NASA/University of Maryland (2002) MODIS Hotspot  / Active Fire Detections. Data set. MODIS Rapid Response Project, NASA/GSFC [producer], University of Maryland, Fire Information for Resource Management System [distributors] http://maps.geog.umd.edu Nellemann, C, L Miles, BP Kaltenborn, M Virtue, and H Ahlenius (Eds) (2007) The last stand of the orangutan – State of emergency: Illegal logging, fire  and palm oil in Indonesia’s national parks United Nations Environment Programme  www.unep.org/grasp/docs/2007Jan-LastStand-ofOrangutan-report.pdf OECD-FAO (2007) OECD-FAO Agricultural Outlook  2007 www.oecd.org/dataoecd  2007-2016 July 2007 www.oecd.org/dataoecd  /6/10/38893266.pdf Oilworld ISTA Mielke website: www.oilworld.biz website:  www.oilworld.biz ‘Orang-utan PHVA (Population and Habitat Viability  Assessment)’ (2004) Workshop 15-18 January 2004, Jakarta. Final Report, August 2004. Port of London Authority (2007) ‘Cargo types’  www.portoflondon.co.uk/display_fixedpage.cfm/id/25 4 viewed October 15, 2007 Rijksen, H. D. and Meijaard, E. (1999). Our vanishing  relative: the status of wild orangutans at the close of  the twentieth century . Kluwer Academic Publishers, Dordrecht. RSPO website: www.rspo.org website: www.rspo.org Sime Darby website: www.simedarby.com website:  www.simedarby.com Sinar Mas (2004). ‘PT SMART Annual Report 2004’

http://www.smart-tbk.com/investor_annualreport.php Sinar Mas (2006). ‘PT SMART Annual Report 2006’ http://www.smart-tbk.com/investor_annualreport.php Stern, Stefan (2006) ‘Unproductive fixation with productivity’  Financial Times 10 April 2006 http://us.ft.com/ftgateway/superpage.ft?news_id =fto041020061435324031 Suharto, Rosediana (2007) ‘Palm Biodiesel and Sustainability’, Ketua PLH Komisi Minyak Sawit Indonesia (KMSI) Presentation given on 15 May 2007 http://www.rspo.org/resource_centre/KMSI_RSPO% 20Forum%20on%20Biofuels_15Mei07.pdf ofuels_15Mei07.pdf UN Food and Agriculture Organisation FAOSTAT  website: http://faostat.fao.org Unilever website: www.unilever.com website:  www.unilever.com Unimills website: www.unimills.com website:  www.unimills.com  van Gelder, Jan Willem (2001). ‘German banks and palm oil and pulp & paper in Indonesia. A research paper prepared for WWF International by Profunda’ December 2001. www.wwf.de/fileadmin/fm-wwf/pdf2001. www.wwf.de/fileadmin/fm-wwf/pdfalt/waelder/umwandlung/PalmOil___Paper_Banks_  WWF_2001.pdf  Wahyunto et al (2006) ‘Maps of peatland distribution, area and carbon content in Papua, 2000 – 2001’  Wetlands International – Indonesia Programme and  Wildlife Habitat Canada (WHC)  Walhi, Jikalahari and WWF (2006b) ‘Eyes on the Forest. July 2006 Investigative Report’ Walhi, Jikalahari and WWF http://eyesontheforest.or.id  /index.php?option=com_docman&task=cat_view&gid =14&Itemid=20  Wetlands International (2006a) ‘Peatland degradation fuels climate change: an unrecognized and alarming source of greenhouse gases’ November 2006  www.wetlands.org/ckpp/publication.aspx?ID=1f64f9 b5-debc-43f5-8c79-b1280f0d4b9a  Wetlands International (2006b) ‘Shocking climate impact of wetland destruction in Indonesia’ Press release 2 November 2006  www.wetlands.org/news.aspx?ID=2817de3d-7f6a4eec-8fc4-7f9eb9d58828  Wilmar (2006) ‘Annual Report 2006’ http://www.wilmar-international.com/investor/   Annual%20Report%202006.pdf  Wilmar (2007) Wilmar International ‘2007 Second Quarter results briefing’ 14 August 2007  www.wilmarinternational. com/investor/Wilmar_2QFY07 _Presentation_Slides.pdf  Wilmar International website:  www.wilmarinternational.com  WRI (2007) ‘Climate Analysis Indicators Tool vs 4.0’ http://cait.wri.org  WWF (2005) Borneo: Treasure Island at Risk. Maps on Status of Forests, Wildlife and related Threats on the Island of Borneo . WWF Germany. June 2005.

 April 2008 Published by Greenpeace International Ottho Heldringstraat 5 1066 AZ Amsterdam The Netherlands

Greenpeace is an independent global campaigning organisation that acts to change attitudes and behaviour,, to protect and conserve the environment behaviour and to promote peace. Greenpeace is committed to stopping climate change. We campaign to protect the world’s remaining ancient forests and the plants, animals and peoples that depend on them.

[email protected] www.greenpeace.org/forests

We investigate, expose and confront the trade in products causing forest destruction and climate change. We challenge governments and industry to end their role in forest destruction and climate change. We support the rights of forest peoples.