JAKARTA: Corporate zero deforestation commitments adopted by palm oil companies in Indonesia may have helped reinforce efforts to protect forests but a new study has found little evidence that they produced additional reductions in deforestation beyond broader changes already affecting the industry.
The research published in the Proceedings of the National Academy of Sciences compared Indonesian palm oil concessions linked to companies with zero deforestation commitments with those not connected to such pledges.
The findings showed that deforestation declined dramatically in both groups. During the 2018–2020 implementation period, annualised deforestation fell to around 0.5% in concessions linked to zero deforestation commitments as well as those without them. The estimated difference between the two groups was statistically indistinguishable from zero.
Researchers said the results suggest that companies making zero deforestation pledges largely complied with them, but the commitments did not appear to deliver an additional measurable reduction in forest loss during the period studied.
One possible explanation is that many of the concessions were already considered “old frontiers,” where large areas of forest had been cleared before the commitments came into effect. By 2012, the average concession linked to a zero-deforestation commitment had already lost about half of the forest it contained in 2000.
Lower palm oil prices may also have reduced incentives for companies to expand plantations and clear remaining forests. At the same time, Indonesian government policies, including restrictions on new concessions and peatland clearing, may have constrained expansion across the sector.
However, researchers cautioned that the findings do not necessarily mean corporate commitments are ineffective. Companies without formal zero deforestation pledges may also have changed their behaviour because of pressure from buyers, environmental groups and wider industry initiatives, making it harder to measure the commitments’ separate impact.
The researchers said the true value of zero deforestation commitments could become clearer during future periods of intense pressure on forests.
That possibility may soon be tested as Indonesia expands its palm oil based biodiesel programme. Rising demand for palm oil could create fresh incentives for plantation expansion, potentially putting remaining forests at greater risk.
Researchers argue that during such periods of renewed deforestation pressure, zero deforestation commitments could play a more important role in preventing forest loss.
The study highlights a key challenge for environmental policy: high compliance with sustainability pledges does not always mean those pledges are solely responsible for positive environmental outcomes. As Indonesia faces growing demand for palm oil, the effectiveness of corporate commitments may be tested when economic incentives to clear forests become stronger once again.