Forest Peoples Programme Supporting forest peoples’ rights

Private sector

Holding HSBC to account

Part of FPP’s role is to hold the private sector to account to reduce the harm that private sector loans have on indigenous peoples.

HSBC is a key funder of the palm oil sector, acting as a principal banker for 15 of the 17 main palm oil business groups

Together with research organisation, Profundo, FPP wrote a report on HSBC’s investments in the palm oil sector, HSBC and the palm oil sector in south-east Asia: towards accountability, demonstrating that HSBC’s standards relating to the organisations they invest in are lower than those of the RSPO. Moreover, despite a claim of ‘commitment to transparency’, HSBC does not disclose which palm oil companies it funds and how they measure up against its policy and standard.

Following publication of the report, there was wide media coverage and HSBC announced that it would exit its relationship with any clients that are making no progress towards meeting the HSBC forestry policy.

Why engage with the private sector?

Like it or not, the private sector has direct and extensive impacts on forests and forest peoples. FPP supports forest peoples’ campaigns to get the private sector to adopt a rights-based approach to doing business. Changing policy within the private sector can bring direct benefits to forest peoples by securing respect for their rights to tenure, rights to FPIC, customary rights, basic rights to health, life and to civil and political rights and freedoms. By getting involved in the discussions at the RSPO and The Forests Dialogue (TFD), FPP can and does ensure the incorporation of a rights based approach to business impacting on forest peoples.

The Forests Dialogue (TFD)

The Forests Dialogue (TFD) is a ‘multi-stakeholder’ process originally set up by the world’s largest forestry companies and large conservation NGOs which is administered by a small secretariat located in the Forestry School of Yale University (USA). Many of the companies involved are members of the World Business Council for Sustainable Development.

TFD aims to provide a shared forum in which NGOs and companies can explore contentious issues and identify the ‘fracture lines’ which divide opinions and form barriers to the realisation of ‘sustainable forest management’. Dialogues have explored issues such as forestry certification, biodiversity conservation and illegal logging.

Since 2005, TFD has given greater attention to social issues and the rights of forest peoples, partly as a result of the engagement of the Forest Peoples Programme, which is currently represented on TFD’s steering committee. FPP has also helped TFD reach out to indigenous peoples and other social groups to ensure that social issues are addressed and that rights-holders are part of the dialogues.

Recent dialogues have thus focused on Intensively Managed Planted Forests, Forestry and Poverty, Indigenous and Locally Controlled Forests and three dialogue streams on Climate and Forests, REDD Preparedness and REDD Finance. The outputs from all these   dialogues have highlighted the importance of equity, labour rights, land tenure, respect for customary rights and free, prior and informed consent (FPIC).

A new dialogue on how companies can ‘operationalise’ FPIC effectively is scheduled to commence in 2010.

Palm Oil and the Roundtable on Sustainable Palm Oil (RSPO)

The Round Table on Sustainable Palm Oil (RSPO) is a global initiative to promote the sustainable production and trade of palm oil. Its members are large plantation companies, smallholders, processors, manufacturers and retailers of palm oil products, and NGOs.

Since 2003 FPP has helped create space for indigenous and local communities and smallholders to have a stronger voice in the RSPO.

Working closely with FPP's partner Sawit Watch (which sits on the RSPO Board), we ensured that RSPO's standards require member companies to respect indigenous peoples' customary rights and FPIC. FPIC is now endorsed by the RSPO as a key principle in its Principles and Criteria.

Relevant resources

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FPP E-Newsletter Special Edition on Safeguards, April 2013 (PDF Version)

Forest Peoples Programme

29 April, 2013

FPP E-Newsletter Special Edition on Safeguards, April 2013

As multiple international agencies adopt and update their social and environmental policies, this special edition Forest Peoples Programme E-Newsletter reviews experiences of communities and civil society with the safeguard policies of various international financial institutions. 

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Complaint regarding Wilmar Group’s sale agreement of PT Asiatic Persada (Jambi, Indonesia) to non-RSPO member and non-IFC funded companies without prior consultation with Suku Anak Dalam (SAD) affected communities

Sawit Watch, SETARA Jambi, Ketua Adat Suku Anak Dalam Batin Sembilan and Forest Peoples Programme

15 May, 2013

This complaint is directed to Wilmar Group regarding its sale agreement of PT Asiatic Persada (Jambi, Indonesia) to Prima Fortune International Ltd and PT Agro Mandiri Semesta.

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Indigenous organisations in the Peruvian Amazon denounce intentions of parliamentary commission to promote highway cutting through protected areas and indigenous territories

30 April, 2013

Indigenous organisations of the Purus province including ORAU, FECONAPU and ECOPURUS have denounced the intentions of some members of the Indigenous peoples' parliamentary commission to endorse a proposed law that would render the construction of a major highway cutting through the Purus region as a 'public necessity'. If endorsed by the commission, the law could then be considered for approval by the Peruvian parliament.

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The World Bank’s Palm Oil Policy

29 April, 2013

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[1] 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.

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Experiences of indigenous peoples in Africa with safeguard policies: Examples from Cameroon and the Congo Basin

29 April, 2013

Traditional Baka shelter in Cameroon

By Samuel Nnah Ndobe

The notion of indigenous people has sometimes been controversial in Africa. There are some opinions that consider all Africans as indigenous people liberated from colonial powers, while others simply stress that it is very difficult to determine who is indigenous in Africa. The setting up in 2001 by the African Commission on Human and Peoples’ Rights (ACHPR) of a Working Group on Indigenous Populations/Communities and the Group’s report submitted to and adopted by the ACHPR in 2003 have brought a new perspective to this problem. In this report for the first time there was a unanimous acceptance of the existence of indigenous peoples in Africa and this kicked off discussions on how countries could begin to integrate the rights of these peoples into the human rights mainstream. The indigenous peoples of Central Africa include the mostly hunter gatherer peoples commonly called the “Pygmies” and a number of pastoralist peoples. These peoples still suffer discrimination experienced through the dispossession of their land and destruction of their livelihoods, cultures and identities, extreme poverty, lack of access to and participation in political decision-making and lack of access to education and health facilities.

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The IDB, Camisea and Peru: A sorry, sorry safeguards story

29 April, 2013

Gas pipeline construction in the Peruvian Amazon as part of the controversial Camisea gas project, partly funded by the IADB

The Inter-American Development Bank (IDB) played a catalytic role in the development of the Camisea gas project in the Peruvian Amazon in 2002/2003 despite having no specific policy for projects impacting indigenous peoples. When the Bank adopted one in 2006, a key provision on isolated peoples was ignored when it made a US$400m loan the following year. Meanwhile, attempts by the Bank to ‘protect’ a reserve for indigenous peoples in ‘voluntary isolation’ directly impacted by the Camisea project have proven almost entirely ineffective and are now being further undermined by plans to expand operations within the Reserve. The IDB is required to approve these plans and could do so imminently.

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Safeguards and the Private Sector: Emerging lessons from voluntary standards and commodity roundtables

29 April, 2013

Public indignation about the depredations of ill-regulated business has led to a growing recognition of the responsibilities of businesses to respect human rights, as well as the need for stronger regulations to improve the way products are made and ensure that environments and peoples’ rights are respected and protected. There is now greater awareness that what is urgently needed is strengthened environmental stewardship and land governance, reforms of land tenure, and improved enforcement of revised and just laws.

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Papua New Guinea indigenous chiefs from Collingwood Bay reject Malaysian oil palm plantation and complain to RSPO

25 April, 2013

The traditional chiefs of Collingwood Bay in Papua New Guinea's Northern Province have filed a complaint with the RSPO accusing the Malaysian Company, Kuala Lumpur Kepong, of acting contrary to the RSPO Code of Conduct, Certification Systems and Principles and Criteria. In their detailed submission to the RSPO, they note that they have actively opposed oil palm developments on their lands since 2010.

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Studies show serious mercury poisoning of indigenous peoples in Caura, Venezuela

23 April, 2013

Recent research carried out by scientific research bodies in Venezuela shows that 92% of indigenous women of the Caura river, a major affluent of the Orinoco, have levels of mercury poisoning higher than internationally agreed permissible levels. Over one third of those tested have such high levels of mercury poisoning that they have a 5% risk of their newborn children having neurological disorders. The researchers note that the ongoing contamination of rivers, which results from the continuing illegal gold mining in the lands of the Ye'kuana and Sanema peoples, is getting worse and will lead to progressive bio-accumulation, posing an ever growing risk. 

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International and Indonesian civil society organisations' complaint on transparency and corporate social responsibility of Wilmar International, April 2013

Marcus Colchester (FPP), Franky YL Samperante (Pusaka), Jefri Gideon Saragih (Sawit Watch)

22 April, 2013

International and Indonesian civil society organisations' complaint on transparency and corporate social responsibility of Wilmar International regarding treatment of civil society queries in communications with Wilmar subsidiary PT Anugrah Rejeki Nusantara (Merauke, Papua, Indonesia).

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