POSCO vows to go green in palm oil business

POSCO International's palm oil plantations in Papua, Indonesia / Courtesy of POSCO International

By Baek Byung-yeul

POSCO International will implement a "no deforestation, no peat, no exploitation" (NDPE) policy for its palm oil business in Indonesia with the aim of protecting the environment and seeking sustainable growth with local companies and residents, the trading arm of POSCO group said Sunday

The company entered the palm oil business in Papua, Indonesia in 2011 and completed plantation development at the end of 2017. Its palm oil business involves the extraction of oil at the plantation and the production and sales of oilseed products. In 2019, the company produced 80,000 tons of palm oil.

The NDPE policy is the company's commitment to residents, local companies and the environment in its palm oil business area. POSCO is determined to achieve sustainable palms by preserving the environment of the plantation; protecting the human rights of residents and workers; and better communicating with every party involved in the business, the company said.

"We are declaring the adoption of the NDPE policy, which has been increasingly taken up in the palm oil sector as part of our efforts to create a virtuous cycle in our palm oil business," a spokesman for the company said.

To improve transparency, the company will report every year starting 2020 on how it has prevented deforestation, found alternatives to developments on peat-lands and contributed to the welfare and human rights of the region's indigenous peoples.

POSCO International said it has significantly contributed to the community of Papua by creating 3,500 jobs and offering education programs for indigenous peoples. It also established three clinics helping 25,000 residents there receive medical services at no cost.

"As a member of the global community we will continue to make efforts to be responsible in the countries where we are doing business and working on creating sustainable ecosystems," the company added.

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