Six companies including personal care ingredient suppliers Croda and Seppic are backing a new initiative in Indonesia to build an enabling environment for sustainable palm oil production at scale while empowering local communities.
The Action for Sustainable Derivatives (ASD) Impact Fund has begun supporting the Inobu Mosaik Initiative, which is focused on finding ways to sustainably restore the landscape and drive economic growth in two of the largest palm producing districts in Central Kalimantan, Indonesia – Seruyan and Kotawaringin Barat.
With the help of Inobu – an Indonesian non-profit research institute focusing on the environment and sustainable rural development - the two districts, which cover a total area almost as large as Belgium, are developing ways to restore forest ecosystems while protecting the remaining forests.
Among other activities, the project will create a jurisdictional farmers association for agroforestry products to increase their value and encourage local communities to protect and restore natural forests in their villages.
It will also provide upfront financing and technical support for smallholders’ sustainable farming practices and RSPO certification and establish programmes to ensure all palm oil production is aligned with sustainability principles and criteria.
Six members of ASD - Croda International, The Estée Lauder Companies through its Charitable Foundation, GSK Consumer Healthcare, Natura &Co, Seppic and Stéarinerie Dubois - announced the launch of the ASD Impact Fund in March.
Contributing ASD members source on average 8% of their palm derivatives from Central Kalimantan.
“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,” said Silvia Irawan, executive director of Inobu.”
“This commitment made by ASD is an important step in this direction, acknowledging the work done by the local governments while supporting local communities to farm sustainably and restore degraded landscapes,” she added.
“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.”
