One of the leading suppliers of “green” palm oil to Europe is causing illegal encroachment upon Indonesian forest and peat land, according to a report published by Friends of the Earth Europe. This report exposes the illegal activities of the Malaysian showcase company IOI Group and shows that the increasing demand in Europe for palm oil in food and biofuels is leading to deforestation, breaches of environmental law and land conflicts in Asia.

This report demonstrates that despite extensive commitments to sustainability via corporate social responsibility policies and engagement in multistakeholder initiatives, the IOI Corporation is failing to live up to its green reputation. To put into the spotlight what is really happening on the ground, Milieudefensie commissioned Aidenvironment to investigate a number of IOI’s oil palm plantations in the south of Ketapang, West Kalimantan, Indonesia, where the company is expanding. Based on the findings of this study, Milieudefensie argues that policy-decision makers and buyers cannot rely on perceived sustainable reputations when making decisions about the feasibility of green targets or purchasing agreements.