Gambling on Green

Chapter 7How Public and Private Partnerships Can Support ESG

One of the best ways to understand why corporate partnerships—whether with other corporations, governments, or NGOs—are such an effective tool in ESG settings is through a partnership story. This particular story is focused on finding a remedy for deforestation.

Solidaridad, the international organization focused on supply chain sustainability in partnership with Henkel, the German chemical and consumer goods company provides an example of working together for improved outcome for consumers and the environment. One of the aims of the partnership was to help small farmers produce greater amounts of palm oil without the need for using more land—which is costly—to do so. Solidaridad began providing farmers with training to help them yield more palm oil using less land, as well as helping them get their palm oil certified as “sustainable.” Although critics point out the sustainability designation is far from perfect, certifications do support meeting requirements around production and responding to growing consumer demand around this level of sustainability.¹

Henkel along with Solidaridad developed The Forum for Sustainable Palm Oil in 2013 to support not only elevating the message that palm oil could be developed in a way that did not include massively increasing the amount of land needed, which is the main thing contributing to deforestation, but also supported small farmers who historically haven't had the resources ...