Initial public offering of the world’s biggest palm oil corporation threatens livelihood of 113,000 farming families
The planned initial public offering (IPO) of Malayan state-owned enterprise Felda Global Ventures Holdings (FGVH) will take place this month (28th June). It will be underwritten by Deutsche Bank, JP Morgan and Morgan Stanley; with an expected valuation of around 2.5 billion Euro this will be the second biggest IPO ever, trailing Facebook. A significant detail is that FGVH is controlled by the governing part UMNO, led by Prime Minister Mohd Najib Abdul Razak. The upcoming privatisation might be prompted by a need to generate capital for the upcoming elections.
FGVH also encompasses the world's biggest cooperative of small-scale palm oil producers, comprising over 113,000 farming families. Historically FGVH is always presented as an extraordinary success where it comes to the position of these state-organised farmers. The IPO, however, may have serious consequences for their position, land rights and other privileges, since their land is to be privatised. This situation is even more remarkable considering that these small holders, as of old, represent a significant part of the rural electorate. Investors acquiring FGVH shares are taking a large risk in the social and political sphere that is accompanied by financial risks. These risks are underexposed in the IPO prospectus.
Financial institutions that are directly or indirectly stakeholders in FGVH and it's shareholders, and that simultaneously have an ambition to make the world a better place, now face an opportunity to ensure the basis of existence of 113,000 farming families remains secure. If their supervision prevents the violation of farmers rights they will prove that such cooperation has a future. Money can achieve good things.
Read the ProFundo press release for more information, and take a look at their report for more in-depth information on the issue.
Both ENDS is a member of the Roundtable on Sustainable Palm Oil and has contributed to the design of the RSPO Dispute Settlement Facility
Read more about this subject
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Letter / 30 June 2022
Open letter to the European Commission concerning plant variety rights in the Free Trade Agreement with Indonesia
Today, almost 90 organisations and networks from around the world, including Both ENDS, sent a letter to the European Commission to urge the EU to stop including UPOV91 in Free Trade Agreements (FTAs). The main objective of UPOV91 is to further erode traditional seeds rights and to regulate local seed markets in the interest of internationally operating seed companies.
This matter is urgent because currently, the EU and Indonesia are negotiating an FTA. Including UPOV91 in this FTA means that Indonesia will have to change its policies, which will take away the farmers' rights to:
- breed, save and exchange all seeds and other planting material
- participate in decisions concerning seed improvement/ breeding, selection, quality standards, pricing, production, distribution and diversity
- customary practice especially in regard to indigenous seed
- be protected from being sold fake and inappropriate seed
- have a true choice between the use of certified and seed from fellow farmer managed seed systems. -
Press release / 30 June 2022
Civil society calls upon EU and Indonesia to respect the rights of Indonesia’s farmers
89 NGOs and farmers' organisations from Indonesia, the EU and around the world sent open letters to the EU Commission and the Indonesian government today, calling on them to refrain from any clause that restrict farmers' rights in a future free trade agreement.
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Letter / 30 June 2022
Open letter to the Indonesian Government concerning plant variety rights in the Free Trade Agreement with Indonesia
On behalf of almost 90 CSO's and networks including Both ENDS, IGJ has sent a letter to the Indonesian government about the free trade agreement with the European Union. In this agreement, the EU pushes Indonesia to align its plant variety protection laws with UPOV 91, which would threaten farmers' access to seeds, food souvereignty and agrobiodiversity. The main objective of UPOV91 is to further erode traditional seeds rights and to regulate local seed markets in the interest of internationally operating seed companies.Including UPOV91 in this FTA means that Indonesia will have to change its policies, which will take away the farmers' rights to:
- breed, save and exchange all seeds and other planting material
- participate in decisions concerning seed improvement/ breeding, selection, quality standards, pricing, production, distribution and diversity
- customary practice especially in regard to indigenous seed
- be protected from being sold fake and inappropriate seed
- have a true choice between the use of certified and seed from fellow farmer managed seed systemsThe joint organisations therefore call upon the Indonesian government to resist the ask of the EU to comply with UPOV 91.
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News / 28 June 2022
In solidarity with daughter of murdered Indigenous leader
On Tuesday 28 June, the Honduran organisation COPINH and the Global Justice Association filed a complaint with the public prosecutor in the Netherlands against Dutch development bank FMO. For COPINH, this is part of their continued efforts to bring to justice those involved in the murder of their leader Berta Cáceres. FMO financed the Agua Zarca project in Honduras in 2014. The new complaint is based on documents indicating that FMO's money has been used improperly.
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Event / 19 June 2022, 12:30
"Stop Fossil Finance" block Climate March
Still, more funds are spent on the fossil industry than on sustainable solutions. Banks, pension funds, insurers and governments keep investing in fossil infrastructure which endangers people and the environment. Therefore we call on financial institutions to stop funding the climate crisis.
Join our "Stop Fossil Finance" block at the next climate march!
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External link / 15 June 2022
Open letter to Trade Ministers at the World Trade Organization (WTO)
Joint CSO call to all WTO Trade Ministers to not accept the current draft of Ministerial Decision on the TRIPS Agreement and demand a real Waiver
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Event / 14 June 2022, 15:00 - 16:30
Empowering civil society and communities through open land data
Both ENDS and the Land Portal Foundation invite you to the second webinar in the Whose Land? Inclusive Pathways to Land Governance series, which will focus on the opportunities and constraints of civil society organizations (CSOs) and local communities in advocating for more open land data and in harnessing its power for improved land governance.
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News / 13 June 2022
The WTO and intellectual property rights: what it means for us
Intellectual property law is regulated at various levels around the world. At the international level, intellectual property rights are mainly laid down within the World Trade Organization (WTO) and in trade agreements. But what does this in practice mean for us? With this infographic, we've visualized what happens when a holder of intellectual property rights - usually a big company - thinks his rights are being violated.
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Dossier
Uganda’s Energy Future
Despite the existence of many hydropower dams, foreign investments and large government spending on energy, and new plans for hydropower, oil and gas projects, the vast majority of rural Uganda still remains without electricity. Together with our local partners we are striving towards a sustainable energy strategy for Uganda that starts from the needs and wishes of local communities.
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News / 10 June 2022
FMO fails to meet best practices on financial intermediaries
In a new Position Statement on Financial Intermediary (FI) Lending, Dutch development bank FMO argues for limited responsibility over the outcomes investments that are channeled through commercial banks, investment funds, and other financial intermediaries, representing by far the bigger sector of its portfolio. In doing so, FMO is undermining its development mission, including the protection of human rights and addressing the climate crisis. FMO intends to delegate these key responsibilities to its FI clients only, falling short of best practices of peer financial institutions. In a joint submission prepared by Both ENDS, Oxfam Novib, Recourse and SOMO, we argue that FMO can do much more to ensure the protection of human rights, the environment, and to measure the development impact of its indirect investments.
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Letter / 10 June 2022
Joint submission on FMO’s Position Statement on Financial Intermediaries
Both ENDS, SOMO, Oxfam Novib and Recourse sent in a submission to FMO's public consultation on its Position Statement on Financial Intermediaries. In this position statement, FMO only takes limited responsibility for the consequences of its investments through so-called financial intermediaries. We call upon FMO to publish a position statement that focuses on protecting human rights and the environment and take full responsibility for this.
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Letter / 9 June 2022
Appeal to the FAO to rescind the FAO partnership with CropLife
Pesticide Action Network and 430 civil society and indigenous peoples organizations from 69 countries have sent a letter of concern to the 170th session of FAO council about the FAO partnership agreement with CropLife International.
CropLife International is a global trade association whose members are the world's largest agrichemical, pesticide and seed companies: BASF, Bayer Crop Science, Corteva Agriscience, FMC Corporation, Sumitomo Chemical and Syngenta. The UN Food and Agricultural Organisation (FAO) en CropLife International have started a partnership in 2020 to collaborate on pesticide use. We think that this partnership is incompatible with FAO's obligations to uphold human rights, directly counters any efforts toward progressively banning Highly Hazardous Pesticides, and undercuts the FAO and several Member States' support for agroecology and other transformative practices.
The letter asks the Council to review and end immediately the partnership agreement with CropLife International.
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News / 9 June 2022
Burghard Ilge and Fernando Hernandez: "This WTO conference will be more important than ever"
This week, Geneva will be the epicenter of world trade, as trade ministers and other representatives from around the world gather for the World Trade Organization (WTO) ministerial conference. Liesje Schreinemacher, the Dutch Minister of Foreign Trade and Development Cooperation, is present with a delegation. Our colleague Burghard Ilge is joining as an official member of the delegation, to represent civil society organisations. Colleague Fernando Hernandez will also travel to Geneva, to follow and try to influence the negotiations from outside the conference room together with other civil society organisations from around the world.
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Event / 28 May 2022, 13:00 - 14:15
Afrikadag: Future of food and farming in Africa: the role for small-scale agroecological food production
Join us this Saturday the 28th of May for an inpiring session about the role of agro-ecology in the trasformation to a future proof food and farming system on the African continent (and beyond).
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Blog / 27 May 2022
Divest from EACOP before it’s too late
and Abigail Kyomuhendo*
This week the annual shareholder meeting (AGM) of TotalEnergies took place. Whilst the shareholders celebrated their profits, Ugandan people were being evicted from their lands, thousands of kilometers away, for Total's East African Crude Oil Pipeline (EACOP). -
Press release / 25 May 2022
Award of export support for controversial project in Manilla undermines the Netherlands’ environmental and CSR ambitions
Dutch export credit agency Atradius DSB announced yesterday that it is to provide export credit insurance worth 1,5 billion euros to Dutch dredging company Boskalis for a controversial land reclamation project in the Philippines. According to Dutch and international organisations, including Both ENDS, CARE Netherlands, IUCN NL, Kalikasan PNE and Oceana Philippines, the award of export credit insurance for this project runs contrary to the Netherlands' ambitions in the areas of environment and corporate social responsibility (CSR).
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News / 19 May 2022
Response to government’s letter to parliament on implementation of the Glasgow Declaration
Both ENDS and 95 other organisations* today sent a letter to State Secretary for Finance Marnix van Rij and Minister for Foreign Trade and Development Cooperation Liesje Schreinemacher calling on them to implement the Glasgow Declaration in full. In this agreement, which the Netherlands and 33 other countries signed at the Glasgow climate conference, the signatory countries pledge to stop all public funding for fossil projects by the end of 2022.
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Press release / 19 May 2022
122 CSOs warn signatory countries they have only six months left to meet COP26 commitment to end international public finance for all fossil fuels
Today, 122 civil society groups are releasing letters to eleven government signatories to the Glasgow Statement on International Public Support for the Clean Energy Transition, laying out the actions they must take as soon as possible to meet their commitment. In this joint statement at COP26, 35 countries and 5 public finance institutions committed to end their international public finance for 'unabated' fossil fuels by the end of 2022, and instead prioritise their "support fully towards the clean energy transition."
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Event / 18 May 2022, 10:45 - 12:15
UNCCD-COP15: Monitoring Tree Cover and Enhancing Decision Making Tools Across Africa’s Great Green Wall
Join us for an open space for a reflection and exchange on a new dataset, developed by WRI, to monitor regreening efforts, and its applications in the Sahel.
In the drylands of Africa, land degradation threatens the livelihoods of millions of people. Fortunately, there are promising initiatives emerging all over the continent that are turning the tide. Throughout the Sahel, for example, vast tracts of land along the Great Green Wall have been restored by local communities. They have nurtured the plants that spontaneously spring from the soil, protecting young sprouts from cattle and other hazards.
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Event / 16 May 2022, 13:00 - 15:00
UNCCD-COP15: How funders can best support agroecological initiatives by local communities in drylands
Join our dialogue on how to set up more and better financial mechanisms that can support agroecological initiatives of local communities living in drylands.
The land degradation neutrality (LDN) response hierarchy of Avoid > Reduce > Reverse land degradation is an overarching principle for LDN implementation, which guides people in planning interventions to achieve LDN. The hierarchy articulates which interventions should be prioritised based on their potential to maximise the conservation of land-based natural capital, recognising that avoiding or reducing land degradation is generally more cost-effective than efforts to reverse past degradation. As value for money is highest in the Avoiding and in Reducing Land Degradation response, a smart way to spend money is to support sustainable land management approaches like agroecology that work with nature, not against it.