Fair Finance Japan Case Study on environmental problems associated with plywood production in Indonesia

Fair Finance Guide Japan published a Case Study on environmental problems associated with plywood production in Indonesia operated by the Alas Kusuma Group and financed by Sumitomo Mitsui Banking Group, Sumitomo Mitsui Trust Bank, Mizuho Bank, Norinchukin Bank, and Mitsubishi UFJ Bank.

FFGJ's coalition member JATAN was able to confirm that Japanese companies with policies to prioritize FSC-certified wood in their procurement policies and which adopts NDPE policies (no deforestation, no peat land development, and no exploitation) nonetheless still hold business relations with Indonesian companies with problematic business practices. Banks are complicit in this scheme, FFGJ demands stricter due diligence of material procurement.

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