Over the past two decades, the palm oil industry has emerged as a key global sector for both domestic consumption and exports. However, its expansion has come with significant environmental consequences, particularly due to non-compliance with sustainable cultivation practices. This has led to widespread deforestation and the degradation of peatlands, which play a crucial role in climate regulation.

According to the Earthqualizer report, between 2016 and 2024, 471,238 hectares of forest and 115,587 hectares of peatland were cleared. Alarmingly, 125,092 hectares remain unaccounted for in terms of supply chain integration—referred to as "Orphan cases." These areas cannot be clearly linked to specific market actors, highlighting a lack of transparency and accountability within the industry.

Our report suggests that the root cause of this issue lies in the complexity of the palm oil supply chain and insufficient mechanisms for tracing raw materials. Without transparency, it becomes difficult to hold companies responsible or to implement effective advocacy and reform.

Addressing non-compliance requires urgent action—through improved transparency, stronger regulations, and better monitoring technologies—to reduce deforestation and promote a more sustainable future for the palm oil industry.

To know more, read the full report below!