Can palm oil consumption ever be ethical?

One of the animals most harshly affected by palm oil production is the orangutan.

Orangutans live in rainforests, and spend most of their time in trees. They share 96.4 per cent of the same genes as humans and are known for their intelligence. Indonesia and Malaysia account for 90 per cent of the world’s palm oil production. They are also home to the world’s orangutan population. 

Deforestation is the biggest threat to the survival of this species. Most of the large-scale land clearing operations in Indonesia and Malaysia are undertaken to establish palm oil plantations, making palm oil the biggest contributor to the population decline of orangutans.

Despite being classified as endangered, experts say that orangutans could be extinct within the next twenty years unless immediate and firm action is taken to conserve the species.

Borneo is facing a dire situation. About 50% of the orangutans on the island have been killed or removed since 1999. Researchers predict that the number of deaths will continue to increase into the future.

Most threatened is the Tapanuli Orangutan, with only about 800 individuals remaining. They can be found in Indonesia. The Northwest Bornean Orangutans are also at risk, with only 1500 remaining after years of their habitat being destroyed for land clearing.

Dr Raffaella Commitante has a PhD in Biological Anthropology and is president of the not for profit organisation, Orangutan Conservancy. She says that the displacement of locals often occurs because of the environmental consequences of palm oil plantations.

Malaysia and Indonesia are very different in their approach to palm oil. Dr Raffaella Commitante says that Malaysia still allows land-clearing for palm oil plantations, but they are more conscious of sustainability and the welfare of the local people. 

"When you go into Malaysia, into the areas where this heavy duty processing has happened, you can see that the villagers have benefitted; there is more wealth that has come into the area. Sadly, in Indonesia, when a big scale operation comes in, the local population do not benefit."

She says that the conditions in Malaysian Borneo are less dire than the neighbouring side of Indonesia.

"It seems in Malaysia they are trying to up the budget that they give to conservation organisations and there is government support for it. In Indonesia there is zero government support for these organisations."

Ultimately, it comes down to government corruption and corporate greed.

"In Indonesia companies have to buy a concession as the land belongs to the government. What they do in this area is up to them, the government does not care."

The government makes profit because they are paid concessions for the land. The palm oil corporations make billions of dollars exporting the product across the globe. Palm oil is so deeply ingrained into the global market because it is in countless products, from chocolate bars to soap. Palm oil corporations make huge amounts of money from the demand for the product.

"The industry is driven by greed and you can make so much more money with even more land, that is what drives this engine. It makes it seem insurmountable to try to control because of the amount of money involved."

The Palm Oil Buyer’s Scorecard is a way for consumers to check if the brands they buy are sustainable. The Roundtable on Sustainable Palm Oil (RSPO) exists to help ensure that companies which are labelled ‘sustainable’ are consistently adhering to the standard of sustainability they set. Both of these measures are endorsed by Mr Loh, who says that RSPO certification prevents deforestation near threatened species’ habitats.

Still, this does not put a halt on deforestation all together. According to Dr Commitante, the original idea behind sustainability was that no new plantations would be built, and the oil would only be produced from older plantations. She says this is not the case now, with more flexible rules and governments being offered money to bend them.

Dr Li says that even if companies did not take part in unsustainable practices, this would not address the issues of intergenerational displacement caused by years of palm oil harvesting.

Global consumers are often disassociated with the process of what goes into their products.

While some are aware that buying palm oil prompts deforestation, most do not know what this truly means for the native animals and local people on the ground.

In Australia, people are slowly becoming more aware of the consequences of their buying habits. Amelie Serplet studies Environmental Management, where she has learned about habitat destruction for palm oil. She makes a conscious effort to avoid palm oil in products that she knows contain it.

“If I specifically needed something with palm oil that I cannot substitute, I will buy RSPO certified palm oil over the non-certified kind, but in general, I try to avoid palm oil as much as possible” says Amelie.

While a complete boycott is not the answer, it is clear that the path that Indonesia and Malaysia are on now is one that will inevitably lead to the destruction of a species and further displacement of local people.

"I think that a complete ban on deforestation is the only way out. In order to affect real change, it needs to be from the top down," says Dr Commitante.

With the Indonesian government currently in turmoil, it seems rare that a complete ban on deforestation will occur anytime soon.

Still Dr Commitante and WWF's Benjamin Loh agree that action at the local level can also be impactful. They say that people can be drivers for this change. If consumers want sustainable palm oil or if they do not want any new plantations, and they make that clear through their buying habits, palm oil corporations would be forced to listen.