Seminar paper from the year 2019 in the subject Business economics - Business Ethics, Corporate Ethics, grade: 1,0, Ruhr-University of Bochum (Englisches Seminar), language: English, abstract: Palm oil is a multiplayer, functioning as an ingredient in our everyday food, as an essential ingredient in our cosmetic products and as an energy supplier. We use it on a daily basis, while brushing our teeth with the “Colgate” toothpaste after we ate “Nutella” on toast. After we filled our diesel car with palm oil biodiesel, we probably wash our hands with a “Dr. Bronner’s Magic Soap”. In all these products, palm oil is the fundamental ingredient. But where does it come from and how can we identify the problems that occur within the palm oil production? The edible oil seems to be promising, but in fact causes deforestation, carbon dioxide emissions and the loss of biodiversity. The industries, as well as the end consumers are not aware or do not want to be aware of the fact, that the climate is changing and one essential reason for that is the irresponsible production of palm oil. With the help of organizations like “Greenpeace” and “Amnesty International”, it is possible to find out what consequences palm oil production already has. According to Greenpeace UK “An area the size of a football pitch is torn down in Indonesia’s rainforest every 25 seconds, with palm oil driving the destruction.” (Nicholls). This leads to my research question: Is it possible to produce sustainable palm oil? In order to answer my research question, I want to connect its history, as well as the biological process onto the consequences palm oil production already has. Within my essay I will focus on the business and usage of palm oil, showing its unique variety. With the help of examples of different companies, which use palm oil as an ingredient for their products, one has the possibility to form his own opinion on the aspects of sustainability within the palm oil sector. My goal is to raise awareness of the use of palm oil products and to eliminate preconceptions according the palm oil industry in general.

Key messages Several sustainability certification schemes have been developed for palm oil; however, the field impacts of these schemes remain highly uncertain. The Sustainable Palm Oil Production (SPOP) project, funded by the French National Research Agency (ANR), was aimed at consolidating and deepening the scientific basis of these schemes.SPOP field work undertaken in Indonesia and Cameroon highlighted the large variability in practices and impacts of oil palm systems. Our main results related to the uncovering of the multiplicity of growers and their trajectories, and identifying room for improvement and the need for recommendations adapted to the various grower contexts and strategies.The SPOP project made it explicit that visions of sustainability and global challenges vary greatly among growers and other stakeholders involved in the palm oil sector. These diverging conceptions are most likely to induce bottlenecks in the definition and implementation of good practices and should be accounted for in the refinement of sustainability criteria.Within the SPOP project, we investigated possible futures for oil palm using participatory prospective analyses and multi-agent-based modeling work. Our research work showed that capacity development and the organizational capacity of smallholders, fair partnerships and combined forms of governance are key drivers in ensuring the uptake of good practices and sustainable development at the landscape scale.

There is abundant literature focusing on the palm oil sector, which has grown into a vigorous sector with production originating mainly from Malaysia and Indonesia, and on increased palm oil consumption in many countries around the globe, particularly European Union states, China and India. This sector expansion has become quite controversial, because while it has negative social and environmental impacts, it also leads to positive benefits in generating fiscal earnings for producing countries and regular income streams for a large number of large- and small-scale growers involved in palm oil production. This document reviews how the social, ecological, and environmental dynamics and associated implications of the global palm oil sector have grown in complexity over time, and examines the policy and institutional factors affecting the sector's development at the global and national levels. This work examines the geographies of production, consumption and trade of palm oil and its derivatives, and describes the structure of the global palm oil value chain, with special emphasis on Malaysia and Indonesia. In addition, this work reviews the main socioenvironmental impacts and trade-offs associated with the palm oil sector's expansion, with a primary focus on Indonesia. The main interest is on the social impacts this has on local populations, smallholders and workers, as well as the environmental impacts on deforestation and their associated effects on carbon emissions and biodiversity loss. Finally, the growing complexity of the global oil palm value chain has also driven diverse types of developments in the complex oil palm policy regime governing the sector's expansion. This work assesses the main features of this emerging policy regime involving public and private actors, with emphasis on Indonesia. There are multiple efforts supporting the transition to a more sustainable palm oil production; yet the lack of a coordinated public policy, effective incentives and consistent enforcement is clear and obvious. The emergence of numerous privately driven initiatives with greater involvement of civil society organizations brings new opportunities for enhancing the sector's governance; yet the uptake of voluntary standards remains slow, and any push for the adoption of more stringent standards may only widen the gap between large corporations and medium- and smallscale growers. Greater harmonization between voluntary and mandatory standards, as well as among private initiatives is required. Commitments to deforestation-free supply chains have the potential to reduce undesired environmental impacts from oil palm expansion, and while this risks excluding smallholders from the supply chains, such commitments may function to leverage the upgrading of smallholder production systems. Their success, however, will require greater public and private sector collaboration.

This book evaluates and discusses the main sustainability challenges encountered in the production of biofuel and bio-products from oil palm biomass. It starts off with the emphasis on oil palm production, oil palm products recovery and oil palm wastes utilization. The simultaneous production of these bio-products for sustainable development is discussed. This is followed by the key factors defining the sustainability of biofuel and bio-product production from oil palm biomass. The environmental issues including ecological, life cycle assessment and environmental impact assessment of oil palm plantation, milling and refining for the production of biofuels and bio-products are presented. Socio-economic and thermodynamic analysis of the production processes are also evaluated using various sustainability assessment tools such as exergy. Lastly, methods of improving biofuel production systems for sustainable development are highlighted.

Oil palm plantations and smallholdings are expanding massively in Indonesia. Proponents highlight the potential for job creation and poverty alleviation, but scholars are more cautious, noting that social impacts of oil palm are not well understood. This report draws upon primary research in West Kalimantan to explore the gendered dynamics of oil palm among smallholders and plantation workers. It concludes that the social and economic benefits of oil palm are real, but restricted to particular social groups. Among smallholders in the research area, couples who were able to sustain diverse farming systems and add oil palm to their repertoire benefited more than transmigrants, who had to survive on limited incomes from a 2-ha plot.