In 2011, the World Bank Group (WBG) adopted a Framework and Strategy for investment in the palm oil sector. The new approach was adopted on the instructions of former World Bank President Robert Zoellick, after a damning audit by International Finance Corporation’s (IFC) semi-independent Compliance Advisory Ombudsman (CAO) had shown that IFC staff were financing the palm oil giant, Wilmar, without due diligence and contrary to the IFC’s Performance Standards. Wilmar is the world’s largest palm oil trader, supplying no less than 45% of globally traded palm oil. The audit, carried out in response to a series of detailed complaints from Forest Peoples Programme and partners, vindicated many of our concerns that Wilmar was expanding its operations in Indonesia in violation of legal requirements, Roundtable on Sustainable Palm Oil (RSPO) standards and IFC norms and procedures. Almost immediately after the audit was triggered, IFC divested itself of its numerous other palm oil investments in Southeast Asia.
RE: Civil society inputs to the public consultation on the thematic report on indigenous peoples and business and human rights.
Balancing human beings’ need for decent livelihoods against the imperative of securing our environment is, arguably, the biggest challenge facing our planet. This struggle between ‘development’ and ‘conservation’ is being played out in global policy negotiations, with the decisions of so-called policy-makers being imposed on the ground. But not everything is or should be ‘top down’. Enduring solutions also spring from the grassroots, from the ‘bottom up’.
Letter from leading forest policy, environment, human rights and social justice NGOs expresses concern that IFC's planned 250,000 hectare plantations expansion project could lead to illegality and impunity, environmental mismanagement, abuse of rights, impoverishment of rural peoples and exacerbate climate change.Letter to IFC