November 2015: The Center for International Forestry Research (CIFOR) of the CIGAR Consortium has published a study on the uptake of sustainability standards in the Indonesian palm oil sector. The paper identifies factors that affect the implementation of sustainability standards, including business risk, shareholder interests, interactions among motivations, diversity in producers and the facilitating role of government.

The objective of the study was to identify and describe the model of sustainable palm oil production being built in Indonesia by analyzing: the motivations affecting the uptake of sustainability standards; how these motivations shape corporate commitments; and the factors that support or prevent implementation of sustainability standards. The authors find that change is driven by business risk as well as commitments made by shareholders in the interest of securing profits, avoiding risks and ensuring social acceptance. These motivations interact with context-specific variables such as relationships between stakeholders, ethical motivations and cultural norms, instrumental risks and benefits, market demand, or the degree of alignment between social, economic and environmental benefits.

The study further finds that the uptake of sustainability standards is challenged by the diversity of Indonesian palm oil producers and that there is a need for the government to facilitate responsible investments and engage multiple stakeholders in the sustainability process. The authors recommend, among other actions: securing government buy-in and support; training in sustainability concepts; and more equitable distribution of costs among producers and downstream stakeholders including retailers, consumer goods manufacturers and traders. [Publication: Risky Business: Motivating uptake and implementation of sustainability standards in the Indonesian palm oil sector] [CIFOR Publication Webpage]