DIRTY BANKERS
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RSPO<br />
– NO PROXY<br />
FOR COMPLIANCE<br />
‘RSPO membership in and of itself is not enough to ensure<br />
companies are performing well in sustainability or that<br />
their part of the palm oil value chain is sustainable.’ 55<br />
– HSBC Global Research<br />
Many major international banks have adopted palm oil policies<br />
which accept RSPO standards as a proxy for sustainability. This is in<br />
spite of major issues with RSPO standards and implementation:<br />
• RSPO standards do not equal NDPE policies. 56<br />
• Most RSPO members do not yet have all<br />
their operations certified. 57<br />
• Enforcement is lax, the complaints process can take<br />
years 58 and some companies are massively breaching<br />
standards, eg by developing in primary forest areas<br />
timeline of hsbc links to palm oil companies 2012 2013<br />
hsbc policy<br />
BUMITAMA Loans / Bonds / Services 3 April - IPO prospectus issued;<br />
HSBC acts as joint issue manager,<br />
bookrunner and underwriter<br />
11 November - $120m fixed<br />
term loan<br />
8 May - $70m fixed term<br />
loan<br />
Breaches<br />
2012-13 - deforestation, peatland clearance and<br />
destruction of HCV areas in PT LSM and PT ASMR<br />
RSPO complaints 1 July - PT HPA complaint filed 10 March - PT NKU<br />
complaint filed<br />
7 April - PT LSM<br />
complaint filed<br />
18 September - PT ASM complaint filed<br />
GOODHOPE<br />
Loans / Bonds / Services<br />
Breaches<br />
RSPO complaints<br />
MoEF maps show<br />
thousands of hectares<br />
deforested in PT NB<br />
since 2011<br />
20 March - PT SHP/PT<br />
SSH complaint filed<br />
IOI Loans / Bonds / Services 27 June - $600m corporate bond<br />
Breaches<br />
RSPO complaints<br />
NOBLE GROUP Loans / Bonds / Services 23 December - $650m fixed term loan<br />
Breaches<br />
2012-13 - MoEF maps show<br />
extensive clearance in PT HIP and PT PAL<br />
Two-thirds of PT PAL classified as Intact<br />
Forest Landscape; deforestation continues<br />
RSPO complaints<br />
24 October - PT HIP complaint filed<br />
POSCO DAEWOO Loans / Bonds / Services 14 February - three loans<br />
for $500m, $529m, $700m (all<br />
fixed term)<br />
4 April - $243m fixed term loan<br />
24 April - $209m fixed term loan<br />
3 July - $196m fixed term loan<br />
SALIM GROUP/<br />
INDOFOOD<br />
Breaches<br />
RSPO complaints<br />
Reports of poor water quality,<br />
dead aquatic wildlife and health<br />
problems downstream of PT BIA.<br />
Most of eastern part<br />
of PT BIA identified as<br />
Intact Forest Landscape<br />
Loans / Bonds / Services 28 June - $400m corporate bond 16 April - $400m<br />
corporate bond<br />
16 May - $160m fixed<br />
term loan<br />
Breaches<br />
RSPO complaints<br />
2012-15 - Unusual number of hotspots in PT BIA suggest<br />
deliberate fire-setting<br />
Destruction of<br />
orangutan habitat in<br />
PT GSJ<br />
11 February - Centre for<br />
Orangutan Protection<br />
files complaint on PT GSJ<br />
2013-14 - extensive clearance<br />
in northern part of concession<br />
2013-14 - clearance of 4,600ha in Isuy<br />
Makmur/Kedang Makmur, including<br />
1,000ha of primary forest, as well<br />
as rampant fires<br />
None of the listed companies have stated that they will meet HSBC’s deadline of 31 December 2018 for RSPO certification of all palm oil operations.<br />
8 <strong>DIRTY</strong> <strong>BANKERS</strong>
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