By Aidila Razak
Singapore-based plantation company Wilmar International said the withdrawal of investments from the world’s largest sovereign fund is “surprising” considering its ongoing efforts on sustainability.
“The Norwegian Government Pension Fund’s decision to withdraw investments from the palm oil companies is regrettable and surprising, especially so because a number of these companies (which the fund withdrew from) are active members of the Roundtable on Sustainable Palm Oil (RSPO) including Wilmar,” it said.
In an email to KiniBiz, Wilmar said it remains committed to sustainable development as “it is the only way to ensuring long-term viability of our business”.
Instead of destroying forests, Wilmar said it only operates on land made up of degraded and logged-over secondary forests which have “lost their economic and environmental values”.
“Converting these unproductive wastelands into productive plantations can help restore these values through implementation of the RSPO principles and criteria…which includes delineation and protection of High Conservation Value (HCV) areas,” it said.
The company, which came last in Newsweek’s environmental ranking of 500 companies worldwide, added that half of its plantations are certified by RSPO.
“Further to RSPO standards, we adhere to policies on no-burn practice and no development on peat-land, regardless of depth,” it said.
Norway’s US$ 710 billion fund reported in its 2012 annual report that it pulled out of 23 Asian palm oil companies because their “long-term business model was deemed unsustainable”.
The fund reportedly sold stakes from firms including Wilmar, Kuala Lumpur Kepong and Golden Agri-Resources.
This follows the broadening of focus areas to include deforestation and climate change in its guidelines, which has been lauded by the RSPO.
The fund said its pullout came following reviews which included contacting the companies for information, and weighing their commitment to the RSPO.
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