Palm oil cultivation

Natural capital on which palm oil sector depends

  • Water supply and other hydrological services
  • Soil structure
  • Decomposition of organic matter
  • Nutrient cycling
Impacts of unsustainable practices of palm oil sector on natural capital
  • Clearance of natural forest (timber value supports plantation development);
  • Heavy fertilizer and pesticide application can result in water pollution;
  • Clearance of natural forest can increase soil erosion disrupting watershed functions (including natural water flows) and causing eutrophication;
  • Clearance of natural forest results in loss of biodiversity and carbon emissions.
Impacts of declining natural capital on palm oil and other sectors Disrupted hydrological cycle can result in water supply issues for palm oil cultivation and mill operation, transport challenges and social problems;

Loss of natural forest and potential for sustainable timber production, nontimber forest products, carbon stocks and sequestration;

Polluted waterways severely impact freshwater fish and water supply sectors.