be converted to plantations. In Nunukan district (EastKalimantan), the Bupati (Head of District) is planningto convert 230,000 hectares of land for oil palmplantations.

In Malaysia, a significant amountof forests has been and is beingconverted into plantations. In the1980s, only 1 percent of Sabah'sland area was planted with oil palm.In 1998, 11 per cent or about842, 496 hectares of Sabah's landarea is planted with oil palm.Currently, new plantations are beingdeveloped from forest land in theLabuk-Sugut district, Tongod, aswell as in Kinabatangan and lowerSagama.

Forest conversion activities havealso led to a string of environmentalproblems such as flooding (wherepalms are planted on floodplainland), soil loss and riversedimentation.

WWF believes the solution lies in putting the conceptof sustainability into practice. By adopting responsible

practices, plantations are not only able to tackle

environmental issues wisely, but also maintain

productivity.

The loss of HighConservation ValueForests hasinevitably led to theloss of importantanimal and plantspecies.

World production ofpalm oil: Some factsand figures!!!!! Palm oil is the secondmost important oil after soy oil,producing 23.18 million tonnes(2001) or 19.8 per cent of thetotal production of 17 oils andfats.!!!!! Malaysia is currentlythe world's largest palm oilproducer, contributing 50.9 percent of total global production.Indonesia comes second,accounting for 32.3 per cent.!!!!! It was reported by theJakarta Post (February 28,2003) that conversions of forestsinto oil palm plantations inIndonesia has reached 200,000hectares per year since 1997.!!!!! Between 1990-2002,Malaysia's oil palm areaincreased by 1.6 millionhectares. Over the same timeperiod, oil palm expansion wasmost extensive in Sabah whereit increased from 276,171.

The Forest Stewardship Council (FSC) defines a High Conservation Value Forest (HCVF) as a forest of outstanding and critical

importance due to their environmental, socio-economic, biodiversity or landscape values (www.fscoax.org).

1

The Palm Oil Profile

Over the past decades, the global oil palmindustry has witnessed incredible productiongrowth. This is especially

so in Malaysia and Indonesia whereland has been available forconversion.

Due to the high demand for the crop,oil palm plantation areas inMalaysia expanded from 1.7million hectares in 1990 to 3.37million hectares in 2002. InIndonesia, the areas used for oilpalm plantations have expandedfrom 1.1 million hectares in 1991to 4.1 million hectares in 2002 .Globally, oil palm area increased by43 per cent from approximately 6million hectares in 1990 to 10million hectares in 2002.

Looking at the current trend, thepalm oil industry is set to grow evenmore. This means that more forestareas will be converted for oil palmplantations. In most cases, theseforests are not just ordinary forests.The same prime oil palm lands mayalso contain High ConservationValue Forests (HCVFs).

In Indonesia, the expansion rate of oil palm plantationis rapidly increasing. The Papua province has allocatedapproximately 3 million hectares of mainly forests to

1

WWF-Malaysia

What are Better Management Practices?

The development of Better (or Best) Management Practices (BMPs) for oil palm plantations has been driven bythe rationale that these practices enhance the overall productivity of the operations. It illustrates the industry'spositive efforts to protect the environment from its own footprint. WWF believes that BMPs are importanttools to ensure sound land use policies and good plantation management.

The lack of uniformity or consistency in implementing BMPs by industry members has become a cause ofconcern for both the industry and WWF. In addition, BMPs have not adequately addressed conservation-related issues that represent one pillar of sustainability, such as managing conflicts with wildlife.

Unsustainable practices result in the lossof important ecosystems

An aerial view of a flooded oil palm plantationWWF-Malaysia WWF-Malaysia

1 GAPKI stands for Gabungan Pengusaha Kelapa Sawit Indonesia or Indonesian Palm Oil Producers’ Association

BMPs in BriefBMPs in BriefBMPs in BriefBMPs in BriefBMPs in Brief

! HCVF: Provides a tool to identify High Conservation Values at the landscape andplantation level for management.

! Human-wildlife conflict resolution: Generates guidelines for managing human-wildlife conflicts at the plantation and district/regional levels. These include guidelinesfor the establishment and/or maintenance of wildlife corridors, riparian reserves orforest reverts.

! Habitat conservation & restoration: Conserves forest areas within plantation area toenhance its natural biodiversity. This includes areas classified as unsuitable for oil palmcultivation.

! Restoring and avoiding land tenure conflicts: Identifies potential disputeresolutions with local communities with claims over lands that are appropriated for newplantations, e.g. customary resources and land rights of indigenous peoples.

! Zero Burning: Non-polluting commercial techniques for land preparation.! Integrated Pest Management (IPM): Management of pest populations by using a

mix of suitable techniques in plant protection that minimises damage to theenvironment.

! Waste minimisation and utilisation: The efficient use of field residues to minimisepollution generated in palm oil production.

What WWF is doing

Globally, WWF has worked to promote sustainable practices within the oil palm and soy industry through itsForest Conversion Initiative. The Forest Conversion Initiative was set up to ensure that forests of highconservation value are no longer threatened by the expansion of palm oil and soy.

Since 1999, WWF-Malaysia has collaborated with the oil palm industry to build greater environmental awarenessand promote Better Management Practices (BMPs). Together with the Malaysian Palm Oil Association (MPOA),WWF-Malaysia has been conducting numerous dialogue sessions and seminars to promote BMPs in a moreintegrated manner within the industry.

In Indonesia, the second largest producer country, WWF-Indonesia has opened dialogue and built a commonplatform where industry representatives (e.g. GAPKI and several companies) and the government worktogether to promote BMPs. These include mitigating human-elephant conflicts as well as identifying andmanaging HCVF in Riau and other plantation areas.

Why is it important for oil palm companies toimplement BMPs?

! A management solution or potential reduction in wildlife impacts on plantationsreduces unnecessary crop loss.

! Proper land-use policies minimise unnecessary environmental problems and increaseproductivity per hectare.

! A reduction in pollution will result in a better environment.! Enhances corporate image and competitive edge.! Maintaining a responsible corporate image will reduce potential conflicts with the

surrounding communities and avoid future reputational or financial risks.! Efficient waste management is cost-effective.! Maximum use of field residues generates renewable energy source for mills.! Residues generate additional income for company such as animal feed or raw

materials in the wood-based industries.

Effluent Pond - Wherefield residues are processedfor assorted usage.

Shredding palm trunks is acommon non-pollutingpractice in plantations.

Beneficial plants helpbiological control of pests.

Riparian reserves conservebiodiversity withinplantation areas.

Golden Hope Plantations Golden Hope Plantations Golden Hope Plantations WWF-Malaysia

For more information on how yourcompany can be actively involvedin the development of BMPs,please contact:

WWF Malaysia49 Jalan SS 23/15

47400 Petaling JayaT: + 603 7803 3772F: + 603 7803 5157

E-mail: ang@wwf.org.my

National Coordinator forSustainable Palm Oil in Indonesia

WWF IndonesiaKantor Taman A9, Unit A-1,

Jl. Mega Kuningan, Lot 8-9/A9Kawasan Mega Kuningan, Jakarta 12950

IndonesiaT: +62-21-5761070 ext. 502

F: +62-21-5761080Email: fardiansyah@wwf.or.id

WWF Forest Conversion InitiativeCoordination OfficeWWF Switzerland

Hohlstrasse 110CH-8010 Zürich

SwitzerlandT: +41 1 297 21 21F:+41 1 297 21 00

info.conversion@wwf.ch

Acknowledgements

Golden Hope Plantations BerhadUnited Plantations Berhad

WWF- International (Asia Pacific ForestFutures Programme)

WWF-MalaysiaWWF-Switzerland

The Future of a Sustainable OilPalm Industry:

What's Next?

Today, environmental concerns in the oil palm industry arebecoming serious issues that need serious consideration bystakeholders. Worldwide, consumers are becoming more sensitiveand aware of the origins of the products they purchase. They areincreasingly demanding for products from sustainable sources.

In maintaining consumer confidence and thus, ensuring the futureof our oil palm industry, the industry needs to implement the variousBetter Management Practices (BMPs) in a consistent and effectivemanner.

Your plantation's choice affects the environment and futuregenerations. Let's steer the industry towards greatersustainability.

WWF’s mission is to achieve the conservation of nature and ecological processes by:- Preserving genetic, species and ecosystem diversity;- Ensuring that the use of renewable natural resources is sustainable both now and in the

longer term, for the benefit of all life on earth;- Promoting actions to reduce, to a minimum, pollution and the wasteful exploitation and

consumption of resources and energy;

WWF’s ultimate goal is to stop, and eventually reverse, the accelerating degradation of our planet’snatural environment, and to help build a future in which humans live in harmony with nature.

Sustainable practices within the industry ensurea future for both the environment and industry.