Resources Sustainability

Palm oil-based green fuel program unlikely to empower palm oil farmers (17 Feb)

Oil palm farmers have raised doubts that the palm oil-based “green fuel” scheme laid out in the government’s recent five-year plan will benefit them, taking past biodiesel developments as cautionary tales. Palm Oil Smallholders Union (SPKS) secretary-general Mansuetus Darto said that the scheme could risk repeating mistakes of keeping farmers out of the supply chain just like previous biodiesel programs. As an example, he said agribusiness giant Wilmar Group “did not involve” smallholders in producing its assigned 2.5 million liters of the 30-percent blended biodiesel (B30) quota. Instead, around 162 companies are supplying the crude palm oil (CPO) for the group’s B30 production.

Source: The Jakarta Post

Sciencemag news report on forest fires misconceived (19 Feb)

The Indonesian Ministry of Environment and Forestry (MoEF) says that a recent news report from Science Magazine (Feb 12) undermines its own quality by making a tendentious and incorrect claim concerning the ministry’s latest version of the extent of 2019’s burned areas. The serious error referred to by the ministry pertains to the Science Magazine’s one-sided claim that the ministry has made ‘revised estimates’ on the size of 2019’s burned areas, bringing the estimate closer to a premature CIFOR analysis. Adding to the ministry’s criticism, the Indonesian Peat Restoration Agency (BRG) also sent a letter to CIFOR in early December last year expressing its disappointment in CIFOR’s release of controversial data on the size of 2019’s burned areas.

Source: Foresthints

Oil palm estates above 40 hectares must be MSPO-certified (22 Feb)

Operators of oil palm estates which are above 40 hectares are required to have the Malaysian Sustainable Palm Oil (MSPO) certification effective this year. Primary Industries Minister Teresa Kok Suh Sim said the Malaysian Palm Oil Board (MPOB) would be withdrawing the licence of operators who failed to comply with the matter. “MSPO certification is mandatory for palm oil estates which are 100 acres (40.47 hectares) and above,” she said when met by reporters after the launch of Sabah level ‘Love MY Palm Oil’ campaign at Teck Guan Cocoa Village here today.

Source: New Straits Times Online

Green Finance

Sustainability disclosures by European firms generally poor, study says (17 Feb)

A study of disclosures from 1,000 firms by the Alliance for Corporate Transparency found generally poor European corporate disclosures on climate change and other sustainability issues. This comes ahead of an assessment of the European Union’s Non-Financial Reporting Directive, particularly the rule’s effectiveness and what may need to change. The Directive, which came into force in 2018, requires companies to disclose how they manage a range of social and environmental challenges, but stops short of specifying what companies should report. According to the report, just 23.4 percent of the companies analysed provided specific information allowing readers to understand the risks facing them, even though 53.8 percent of companies said they recognised the existence of such risks.

Sources: Reuters, The Japan Times, TodayOnline

StanChart commits US$75 billion toward sustainable development goals (18 Feb)

Standard Chartered announced it will provide US$75 billion in financing by 2024 toward sustainable development and clean energy projects, as it expands on its aspirations to support the Paris Agreement on climate change. The bank is also targeting net zero emissions from its own network of branches and offices by 2030. This move comes amid a broader shift among financial firms worldwide to tackle their role in funding fossil fuel projects, as public concern grows about the climate crisis.

Sources: Reuters, Channel NewsAsia, TodayOnline

ESG investments could reduce focus on quick profits: EU watchdog (20 Feb)

Climate-friendly stocks have outperformed the broader market in the past two years and could also help to combat “short-termism” in financial markets, said the European Securities and Markets Authority (ESMA). The watchdog defines “short-termism” pressure in markets as market participants’ focus on a quick profit at the expense of long-term investments. In its latest Trends, Risks and Vulnerabilities report, ESMA found that the misalignment of investment horizons in financial markets and the remuneration of fund managers and executives that rewards short-term profit seeking could be potential sources of short-termism. Improvements in the availability and quality of Environmental, Social or Governance (ESG) disclosures could serve to promote more long-term investment decisions by investors.

Sources: Reuters, TodayOnline

UK watchdog to scrutinise how companies, auditors calculate climate risk (20 Feb)

Britain’s financial accounting watchdog, the Financial Reporting Council (FRC) plans to review how companies and auditors assess and report the impact of climate change on their businesses, as investors push for better disclosure of the risks. Many money managers are concerned the information they are given by companies and the accounts signed off by auditors do not give a full picture of the risks, leaving them vulnerable to steep losses. In response, the FRC said its review will look into the extent to which British companies and auditors are responding to climate-related issues to ensure reporting requirements are met. It would check company reports and accounts for their compliance with reporting requirements, and audits to see how auditors reflect climate risk, both in terms of the judgments they make and any related disclosures.

Sources: Reuters, TodayOnline, The New York Times

Social Sustainability

Catholic Church creates one-stop shop for victims of modern slavery (17 Feb)

Under a new Catholic Church initiative, victims of forced labour and modern slavery will be given access to free legal advice, housing assistance, health care, financial advice and welfare support. Named Domus 8.7, the national network would be linked to 45 Catholic schools, universities, dioceses, health and aged care services, social services and finance and investment services. Currently, Australia has no mention of victim or survivor assistance in its modern slavery laws and instead victim assistance, such as immunity and witness protection, are based on whether victims speak with the police. The new centre fills a real gap by providing confidential, easily available support to help meet the basic needs of those entrapped in modern slavery, such as providing them with warm clothing, addressing workplace problems and visa problems and concerns.

Source: The Sydney Morning Herald

Ministry reports increase in human trafficking cases (21 Feb)

In their annual report, the Cambodian Interior Ministry said law enforcement agents cracked down on 163 human trafficking and sexual exploitation cases last year, an increase of 29 when compared to the same period in 2018. Human trafficking cases still persist due to a lack of education, leaving migrant workers at risk of being trafficked abroad. Cracking down on human trafficking is not yet effective because fraudulent documents are used by people going abroad. Law enforcement agents must cooperate with NGOs to combat human trafficking.

Source: Khmer Times

Immigration rules post-Brexit could fuel modern slavery, say charities (21 Feb)

The proposed closure of UK borders to low-skilled workers after Brexit risks driving vulnerable EU citizens into modern slavery, charities have said. They warned the ban will harm EU citizens already in the country who may not know their legal rights post-Brexit and others lured by a glut of cash-in-hand jobs in restaurants, offices, farms and construction sites, who will risk being brought into the country by traffickers. Among those at risk of exploitation will be workers who come into the UK on temporary farming visas. Fruit and vegetable farms rely heavily on EU citizens for back-breaking harvesting work, and the government has been criticised for pledging to allow in 10,000 people on seasonal agriculture work visas, when farmers say they need 70,000 a year to keep supermarket shelves stocked. Last autumn tonnes of crops were left to rot because of a lack of agricultural workers. The Joint Council for the Welfare of Immigrants said the lack of supply of workers and the lure of over-staying for those who do secure a temporary visa would strengthen the hand of criminal gangmasters.

Source: The Guardian