Interviews with former workers by ICIJ partner The Gecko Project reveal new links between First Resources, the billionaire family that owns it, and a trio of companies that have reportedly cleared more forest for palm oil than any other firm in Southeast Asia.
By Scilla Alecci November 20, 2023
In public statements, First Resources says it is committed to producing the palm oil that ends up in major Western brands’ cosmetics, foods and biofuel in a manner that doesn’t deplete natural resources and protects wildlife and the environment.
But an investigation by nonprofit newsroom The Gecko Project reveals how First Resources’ majority shareholders, the billionaire Fangiono family, have breached their company’s pledge of “sustainable” production by secretly controlling companies that environmental analysts found had cleared large areas of rainforest in Indonesia.
The investigation in collaboration with the International Consortium of Investigative Journalists also spotlights a loophole in the Singapore Exchange’s reporting rules that allows listed companies to publish so-called sustainability reports, without requiring that an independent firm audits the company’s green claims.
The findings are part of Deforestation Inc., a cross-border investigation led by ICIJ that exposed how a lightly regulated sustainability industry overlooks forest destruction and human rights violations when granting environmental certifications. Deforestation Inc. showed how major companies increasingly use certifications based on flawed audits to advertise products and operations as compliant with environmental standards, labor laws and human rights, misinforming shareholders as well as customers.
In a press release, First Resources said that in 2022 it recorded “its best performance” financially since listing on the Singapore exchange with $1.2 billion in revenues. In the sustainability report it published on its website, the company assured investors and customers that its supply chain is “transparent” and that it “encourages” its suppliers to adhere to its environmental standards.
The examination of First Resources’ practices by The Gecko Project appears to contradict the company’s statements.
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