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Land Grabbing, Forests & Finance

One of the fastest growing drivers of deforestation, greenhouse gas emissions, and displacement of forest-dwelling communities is the expansion of monoculture palm oil plantations across the tropics for the production of food, fuel, and cosmetics. The expansion of palm oil plantations has led to massive forest destruction and social conflicts that pit plantation companies against indigenous groups and local communities – and too often fracture and divide these communities.

Deforestation driven by industrial agriculture is second only to fossil fuel combustion as a leading driver of global climate change. In turn, key drivers of this trend include investments in large-scale land acquisitions (often referred to as ‘land grabbing’), the rapid rise in both commodity prices and commodity speculation, and the exponential growth of biofuel use and investment — trends that will continue unless curbed through targeted action.

In recent years there have been very effective campaigns to get consumer companies to trace their palm oil from the retail shop back to the plantations where it’s grown, and to then eliminate deforestation and human rights abuses from global supply chains. But more effort is needed to drive these campaigns home – as well as to “follow the money” to prevent banks and investors from financing dirty palm oil.

Because the palm oil industry is financed in part by investment firms in the U.S. and Europe, dirty palm oil linked to deforestation and conflict could be in your retirement fund, your mutual fund, your IRA, or your school’s endowment.

Join the movement to fight deforestation by calling on U.S. investment firms to #DefundDeforestation and commit to human rights by implementing Deforestation and Land Grab-Free Investment policies. U.S. investment firms, including the firms that manage pension funds for many government and university employees, are among the largest financiers of palm oil. That means that we have the power to use our stake in the palm oil industry to bring about change.

  • Forests Tell BlackRock: Stop supporting environmental destruction and human rights violations
  • Forests Stop a hydro dam from wiping out the newly discovered species of orangutan
  • Forests Tell TIAA to defund deforestation
Impact Stories See All
A Victory for Forests: Cargill Cuts Ties with Palm Oil Producer
A Victory for Forests: Cargill Cuts Ties with Palm Oil Producer

Friends of the Earth and our allies have pushed businesses and corporations to cut ties with abusive and destructive palm oil companies.

Nestlé Cuts Ties With Conflict Palm Oil
Nestlé Cuts Ties With Conflict Palm Oil

More than 40,000 Friends of the Earth members signed our petition urging Nestlé to cut ties with REPSA. And Nestlé responded.

Your Money & Deforestation

As part of our campaign to #DefundDeforestation, we host DeforestationFreeFunds.Org – a search platform that enables people to find out if their money, in the form of individual investments or an employer-provided 401(k), may be causing tropical deforestation through investment in companies that produce, consume, or finance palm oil – the fastest growing cause of rainforest destruction today. DeforestationFreeFunds is a great place to start to find out of your money is financing forest destruction.

We’ve also mapped the top 10 U.S. investment firms with funds in palm oil production, and are campaigning to urge these firms to defund deforestation by adopting four pillars of responsibility:

to disclose their exposure to deforestation and land risk in palm oil and other commodities;

to commit to a deforestation and land grab-free investment policy;

to exclude bad actors and advocate for responsible financing;

to repair the damage and ensure justice for affected communities, and support only companies that restore ecological damage as part of their commitment to forests.

To learn more, read our report: Are You Invested in Exploitation? Why US investment firms should quit financing conflict palm oil and commit to human rights

Is Your 401 OK?

For many of us, the majority of our investments are in 401(k) plans offered by our employers. These 401(k)s invest mostly through mutual funds and exchange-traded funds (ETFs). But those funds can invest in a wide array of securities, and it’s not always easy for investors to investigate what’s inside the funds they own. You can spend hours poring over mutual fund prospectuses, and still not fully grasp everything your 401(k) is invested in.

Your retirement money may be invested in financially and morally risky palm oil plantation companies.

Talk to your 401(k) plan manager about offering Deforestation Free 401k fund options.

Latest News See All
Harvard and TIAA Involved in Destruction of Most Biodiverse Savannah in World

A new report details how Harvard University and U.S.-based pension fund TIAA are involved in forest fires burning in a key ecosystem — the Brazilian savannah (Cerrado).

Friends of the Earth applauds institutional investors’ call to protect the Amazon rainforest, urges Blackrock and others to join

It is essential that investors take action to end deforestation, land grabbing and biodiversity loss in the Amazon, Indonesia and around the world. We are pleased to see over 200 investors voice concern, and we look forward to seeing how these very laudable words are turned into concrete action.

Hundreds of Companies Set to Miss 2020 Deadline to End Deforestation in Supply Chains

For a liveable future, these companies must make good on their promises and cut deforestation, land grabs and human rights abuses out of their supply chains immediately.

Latest Blog Posts See All
Harvard and TIAA’s farmland grab in Brazil goes up in smoke
Harvard and TIAA’s farmland grab in Brazil goes up in smoke

TIAA, Harvard and the other institutions buying up farmland in Brazil and elsewhere around the world must stop pretending that their practices are sustainable.

BlackRock’s recent statement on palm oil reveals an unhealthy addiction to climate risk
BlackRock’s recent statement on palm oil reveals an unhealthy addiction to climate risk

BlackRock, the $6.5 trillion Wall Street asset manager, has quietly released a statement on the company’s approach to engagement in the palm oil sector — an industry notorious for its role in destroying the planet’s last forests.

In the Peatlands of South Sumatra: A Tale of Two Villages
In the Peatlands of South Sumatra: A Tale of Two Villages

The palm oil industry is responsible for destroying some 24 million hectares of Indonesian rainforest since 1990, much of it through burning. But because huge areas of Indonesia’s vast peat bogs have been drained and dried out to make way for the plantations, the industry has also unleashed flooding in…

Featured Resources See All
  • Climate of Risk: Executive Summary
  • Invested in Exploitation? TIAA’s Ties to Land Grabbing and Deforestation
  • Are You Invested in Exploitation?
Resources See All
  • How Palm Oil Poses Material Risks to Investors
  • The Importance of Land Rights for Investors in Agribusiness
  • Environmental Social and Governance Policies of the Top U.S. Financiers of Palm Oil