“Though labor issues have largely been ignored, the punishing effects of palm oil on the environment have been decried for years. Still, giant Western financial institutions like Deutsche Bank, BNY Mellon, Citigroup, HSBC and the Vanguard Group have continued to help fuel a crop that has exploded globally, soaring from just 5 million tons in 1999 to 72 million today, according to the U.S. Department of Agriculture. The U.S. alone has seen a 900 percent spike in demand during that same time.
Sometimes they invest directly but, increasingly, third parties are used like Malaysia-based Maybank, one of the world’s biggest palm oil financiers, which not only provides capital to growers but, in some cases, processes the plantations’ payrolls. Financial crimes experts say that in an industry rife with a history of problems, banks should flag arbitrary and inconsistent wage deductions as potential indicators of forced labor.
“This has been the industry’s hidden secret for decades,” said Gemma Tillack of the U.S.-based Rainforest Action Network, which has exposed labor abuses on palm oil plantations. “The buck stops with the banks. It is their funding that makes this system of exploitation possible.”” (Read More)