27th Mar 2015 09:09
LONDON (Alliance News) - Equatorial Palm Oil PLC Friday said it is taking part in a global independent study that is focused on responsible land use by palm oil operators and said it will not plant any plantations on new land until the results of the study are revealed later in 2015.
The company said it was taking part in the High Carbon Stock Study as its parent company, Kuala Lumpur Kepong Bhd, was taking part. Equatorial said the study conclusions are expected to provide clear parameters for the establishment of new plantations in non-arable areas.
The company said the study is a "key component" of the Sustainable Palm Oil Manifesto, which was signed by numerous palm oil growers from around the world, including Sime Darby Plantation, IOI Corp Berhad, Musim Mas Group, Asian Agri and global palm oil trader Apical Group Ltd.
The manifesto includes a commitment to no deforestation, creating traceable and transparent supply chains and protecting peat areas, whilst ensuring economic and social benefits for the local people and communities where oil palm is grown, it said.
The final conclusions of the study are expected to be revealed in the fourth quarter of 2015, and Equatorial said it will not develop any new areas of land until the results are revealed, but said it still plans on planting a further 1,000 hectares before the end of September on existing land being used for plantations.
"The study will help to shed light both on the biophysical and socio-economic dimensions of what is a critical area of enquiry, taking a fully integrated approach in order to address the concerns of all stakeholders," said Equatorial.
Equatorial shares were down 0.7% on Friday morning at 3.60 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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