A call to financial institutions of Ukraine: Work with palm oil stakeholders to scale climate action

The palm oil sector and financial institutions have long been linked. In 2011, 50 of the world’s largest investor groups backed the Principles for Responsible Investment’s palm oil investor working group, which supports engagement to improve sustainable practices. However, in today’s increasingly stringent regulatory environment, FIs looking to buy into palm oil need to show more than their potential for profit. Non-financial reporting and environment, social and governance (ESG) commitments mean FIs need to be able to demonstrate their sustainable impact in concrete terms. What is of concern is how many global financial institutions continue to be exposed to deforestation, conversion and human rights risks through their portfolios by financing corporate buyers of palm oil that are lagging behind on their sustainability commitments. Current statistics by WWF show that, in the period from January 2016 to December 2021, financial institutions provided a total of US$4.4 trillion to ...