Ongoing deforestation behind forest protection policies: Mitsubishi UFJ's complicity in greenwashing
The Royal Golden Eagle (RGE) Group is one of the worldʼs largest producers of viscose and pulp & paper based in Singapore. From the 1990s to the 2000s, the group faced international criticism for its involvement in large-scale plantation development in Indonesia, which has led to deforestation and violations of the land rights of local communities
In 2015, RGE Group announced its Sustainable Forest Management Policy, signaling a shift toward sustainable business practices. However, investigations by NGOs have revealed that the company continues to engage in destructive forestry practices, using its complex corporate ownership structure as a cover.
In 2021 and 2022, the Asia Symbol pulp & paper mill, Affiliated company of RGE Group based in China, sourced raw materials from the Balikpapan Chip Lestari wood chip mill in East Kalimantan, Indonesia. Investigations found that three suppliers of this raw material were responsible for the destruction of a total of 37,105 hectares of natural forests across Central Kalimantan, East Kalimantan, and North Kalimantan.
APRIL, a pulp & paper manufacturing subsidiary of RGE Group, exports paper products to Japan, including printing and copy paper as well as sanitary paper such as toilet paper. In recent years, many multinational corporations have adopted NDPE policies (No Deforestation, No Peatland Development, No Exploitation). However, it is essential that these policies apply not only to directly involved companies (such as suppliers and financial institutions) but also to the entire corporate groups responsible for environmental and social issues.
Thus, when procuring paper products from APRIL, Japanese companies must also acknowledge their responsibility for issues involving other RGE Group subsidiaries. Buyers in Japan are urged to apply pressure by adopting and enforcing procurement policies that include NDPE commitments to drive improvements on the ground.
Mitsubishi UFJ Financial Group is one of the financial institutions providing funding to RGE Group. In 2024, it will provide funds worth 162 million yen. It stipulates that it be confirmed that there is no heavy logging or deforestation in areas of high conservation value.
