Industry players unite with ASD to enforce sustainable Indonesian palm oil production amid trade inflation

01 Jun 2022 --- Members of Action for Sustainable Derivatives (ASD), Estée Lauder Companies (ELC) Charity Foundation, Natura & Co, Seppic and other healthcare and oleochemical companies collectively formed the ASD Impact Fund, which is now being used to support the Inobu Mosaik Initiative. The Initiative aims to create eco-systems for sustainable and scalable palm oil production while supporting local communities in Indonesia.

This Initiative follows after Indonesia, one of the largest palm oil producers, reopened its ports less than a month after its unexpected export ban of palm oil. 

“The government of Indonesia has made significant progress in reducing deforestation, especially from oil palm and other commodities. But support is needed to maintain this trend while encouraging more large and small-scale producers to join these efforts,” says Silvia Irawan, executive director of Inobu.

“This commitment by ASD is an important step in acknowledging the work done by the local governments while supporting local communities to farm sustainably and restore degraded landscapes.”

“It also shows that global manufacturers from the cosmetics and pharmaceutical industries care about what happens in the tropical landscapes where agricultural commodities, such as palm oil, are produced,” adds Irawan.Participating in the ASD fund shows that the personal care and cosmetic industry cares about where its palm oil is produced and how it is sourced.

Supporting the largest palm producing districts
The Inobu-led Mosaik Initiative will use the to restore the landscape for economic growth in two of Indonesia’s “largest” palm-producing districts in Central Kalimantan – Seruyan and Kotawaringin Barat.

The funding ASD members are noted to source an average of 8% of their palm derivatives from Central Kalimantan.

The districts, which are almost the size of Belgium, will be restored by restoring forest ecosystems and forest protection.

“The Inobu Mosaik Initiative is part of a larger effort to improve environmental sustainability practices in the palm oil supply chain,” comments Ricki Berkenfeld, manager, consumer sectors at Business for Social Responsibility. 

Environmentally sustainable farming practices
Last year, ELC Charitable Foundation and ASD partnered to support the Inobu Mosaik Initiative. The partnership supported the development of ASD’s approach.

Future projects apart from forest restoration include creating a farmers association for “agroforestry products.” Additionally, the Inobu Initiative will provide financing and technical support for sustainable farming practices for the RSPO certification. Programs are also to be established to verify sustainable oil production. 

“From this effort, we expect to gain valuable insights into collective approaches to field-level impact while protecting natural ecosystems and supporting smallholder farmers,” Berkenfeld concludes.

Edited by Venya Patel