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Press Information for Immediate Release
20 November 2008
A new report by the Forest Peoples Programme launched today demands
greater accountability from HSBC, the biggest bank funding the palm
oil sector in South East Asia. The fast-expanding palm oil sector
is known to be a major driver of deforestation and the take-over of
indigenous peoples' lands without their consent. Conflicts between
indigenous peoples and palm oil companies are widespread in Malaysia
and Indonesia.
The report exposes inconsistencies between the HSBC's commitment
to sustainability and accountability and its practice.
It turns out that commercial confidentiality rules prevent HSBC revealing
which palm oil companies are its clients.
'The HSBC is seen as a leader in the banking sector. But the fact
is that, from the point of view of impacted communities, the bank
provides no means for people to know if HSBC is financing the companies
that they may be in conflict with for taking over their lands' says
Marcus Colchester, Director of the Forest Peoples Programme. 'Our
report is meant to promote greater accountability'.
Based on diligent sleuthing of the internet and researching background
documentation, the new report identifies the 17 major palm oil groups
which are among HSBC's clients and explains some of the contradictions
between HSBC's policy on forests and forest products and the standards
of the Roundtable on Sustainable Palm Oil (RSPO).
HSBC is a member of RSPO and sits on the Executive Board of the
RSPO, which is meeting in Bali this week. The first principle of the
RSPO Standard is a commitment to transparency. The report recommends
that HSBC:
- Revises the HSBC Forest policy to bring it into line with the
RSPO standard
- Asks its clients in the palm oil sector to waive the commercial
confidentiality rule so it can encourage accountable relations between
companies, financiers and communities
- Adopts a grievance mechanism so impacted communities can resolve
their concerns
ENDS
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For further information or to arrange an
interview please contact:
Marcus Colchester: +44 (0)7952 943481 marcus@forestpeoples.org
Amarantha Pike: + 44 1608 652893 amarantha@forestpeoples.org
Notes to Editors
1. Copies of the report HSBC
and the Palm Oil Sector in South East Asia: towards accountability
are available at the RSPO meeting and are available on the FPP website
via the above link.
2. The Round Table on Sustainable Palm Oil (RSPO) is made up of the
major companies in the palm oil sector, as well as social and environmental
NGOs, which have agreed the need to reform the sector so it meets
international standards on the environment, human rights, workers'
conditions and best management practices. The RSPO standard was adopted
at the 3rd RSPO Roundtable (see www.rspo.org).
3. Forest Peoples Programme (FPP) is an international NGO, founded
in 1990 to promote forest peoples' rights. FPP supports forest peoples
in their efforts to secure and sustainably manage their forests, lands
and livelihoods. For further information visit the website at www.forestpeoples.org
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