Natural capital and biodiversity accounting in palm-oil production

Publication date: 29/01/2024
Extent: 22 pages

Contributions by: Gunnar Rimmel, Aalborg University Business School, Denmark; and Maizatulakma Abdullah, The National University of Malaysia, Malaysia

Chapter synopsis:

This chapter reviews natural capital and biodiversity accounting in Malaysian palm-oil production. It outlines the palm-oil industry’s impact on biodiversity and natural capital. It then assesses the transparency of sustainability information in the Malaysian palm-oil industry. Five initiatives for improving the transparency of sustainability reporting and the implementation of best practice by palm-oil companies are highlighted. These five initiatives are Carbon Disclosure Project, Forest 500, No Deforestation, No Peat and No Exploitation Implementation Reporting Framework, Sustainability Policy Transparency Toolkit (SPOTT), and Worldwide Fund for Nature Palm Oil Buyers Scorecard. The chapter includes examples of SPOTT data from Malaysian palm-oil companies. This chapter ends with a discussion of weaknesses in current governance that justify the need for more governmental initiatives towards sustainable palm-oil production.

DOI: 10.19103/AS.2023.0128.09