The planned expansion will have catastrophic consequences for forests, peatlands, and communities, warn NGOs. APP says the expansion will not breach its no-deforestation pledge, and is aligned with the new Omnibus Law to boost investment and jobs.
The Singapore-headquartered firm's plan to increase capacity in Riau could put the region at risk of deforestation, fire and social conflict, say NGOs. APRIL says its growth plan complies with its sustainability policy, and it has no intention of expanding its plantations.
The sheer scale of burning suggests law enforcement in the fire-stricken nation has been ineffective. The influence wielded by palm oil and pulp business associations is a key reason why firms still often go unpunished, states a new study.
Satellite analysis has found that Asia Pulp and Paper-linked companies have cleared 3,500 hectares of peatland over the last two years, including since the outbreak of the Covid-19 virus, according to a report by Greenpeace. APP denies the allegations.
Gulzhan Musaeva –
Forest-risk companies in Southeast Asia tend to rely almost entirely on debt financing. In view of this leverage, banks can be deemed directly accountable for deforestation and related offences committed by their borrowers.