This aligns with RSPO’s long-term outcome (ToC L6), which envisions sustainable ecosystem management to achieve no deforestation and promote restoration of environmental value.
The development of oil palm cultivation has been intrinsically linked to the transformation of tropical landscapes, particularly in Southeast Asia. Originally growing wild in West and Central Africa, oil palm became a global commodity, with Indonesia and Malaysia emerging as leaders in production. This expansion has led to significant deforestation, particularly during the late 20th century. While deforestation rates in Indonesia and Malaysia have declined in recent years, the pressure for oil palm expansion is now emerging in other tropical forested regions across West and Central Africa, Latin America and Papua New Guinea.
Recognising the need for sustainable practices, the palm oil sector has made strides in governance over the years, starting with the establishment of RSPO in 2004 to promote sustainable production. In the years that followed, additional corporate No Deforestation, No Peat, No Exploitation (NDPE) commitments, landscape-level conservation approaches, enhanced traceability systems, and evolving regulatory requirements such as national legislations on stricter forest protection laws, and sustainability disclosures on nature-related risks have emerged.
These evolving regulations make it increasingly crucial for palm oil producers to demonstrate no deforestation in their operations to maintain legal compliance for continued market access, secure investments and financing through verified sustainable practices, and build trust with increasingly eco-conscious consumers and stakeholders.
Today, forest protection has evolved from an environmental concern to a business imperative for the palm oil sector. Companies that fail to prevent forest conversion risk market exclusion, financial isolation, and reputational damage in an increasingly transparent global marketplace.