NGOs from Korea and Indonesia file OECD complaint against POSCO International for causing palm oil abuses and National Pension Service and the Export-Import Bank of Korea for financing the abuses

Seoul, December 12, 2019 – Today Korean Transnational Corporations Watch (KTNC Watch), Yayasan Pusaka (Indonesia), WALHI Papua (Indonesia), and SKP KAMe (Indonesia), filed a complaint at Korea’s National Contact Point (NCP) for the OECD (Organization for Economic Cooperation and Development) against POSCO International and two Korean public financial institutions, the Korean National Pension Service (NPS) and the Export-Import Bank of Korea (KEXIM).

The complaint concerns POSCO International, the controlling owner, and the NPS and KEXIM, the financers of POSCO International. The complaint is related to the adverse impacts caused by the operation of the palm oil company PT. Bio Inti Agrindo (PT. BIA), a subsidiary of POSCO International in Papua, Indonesia. The adverse impacts include large-scale deforestation of tropical rainforest and loss of biodiversity; failure to implement Free, Prior and Informed Consent (FPIC) with the customary owners of the land in the process of developing the plantation; and violation of local residents’ right to water by degrading the Bian River water quality.

The complaint is supported by evidence of misconduct by PT. BIA, which is owned by POSCO International. POSCO International has not addressed the deforestation carried out by PT. BIA or put in place policies to prevent further deforestation. Allegations were repeatedly made in regard to violation of the right to Free, Prior and Informed Consent (FPIC), but POSCO International failed to provide a proper remedy to stakeholders. Due to the degradation of the water quality of the Bian River, local residents can no longer use the water from the river for their daily activities or drinking. However, no measures were taken to ensure that the right to water of the local residents is protected.

Under the OECD Guidelines for Multinational Enterprises (the Guidelines hereinafter), corporations have a duty to respect human rights and address adverse impacts when they occur. Corporations should avoid causing the adverse impacts and should provide remedies when the adverse impacts occur. However, measures taken by POSCO International serve as neither remedies for the harms occurred nor due diligence policies to prevent or mitigate further adverse impacts.

Meanwhile, the Guidelines require the corporations to seek to prevent or mitigate adverse human rights impacts directly linked to financial services by a business relationship. NPS, as an institutional shareholder of POSCO International, should engage with the investee companies damaging shareholder value, but NPS has failed to meaningfully engage with POSCO International despite its awareness on the adverse impacts. KEXIM also failed to review the reasonably foreseeable risk in the palm oil industry when it decided to provide the loans to POSCO International’s subsidiary in Papua.

The Norwegian Government Pension Fund and the Dutch pension fund ABP have divested from POSCO International on the grounds of deforestation, and the Korean media has covered the relevant issues in relation to PT. BIA’s operation. Despite this the NPS continues to hold a more than five percent share in POSCO International, and KEXIM has provided loans for PT. BIA’s operations.

Y.L. Franky, the Director of Yayasan Pusaka stated, “The palm oil industry creates many difficulties for the indigenous people of Papua. The forest they have depended on is disappearing and social conflicts due to land disputes are on the increase.” Pastor Anselmus Amo, the Director of SKP KAMe reiterated that the local residents have suffered since PT. BIA began operating the plantation and further explained, “Daily life has been made particularly difficult for local residents by the now polluted river water. However, local residents do not know where to go to raise these issues.” Shin Young Chung, KTNC Watch lawyer also pointed out, “Well-known pension funds have withdrawn their investments, and public financial institutions in Korea should also adopt policies to consider environmental and social impacts of the business.” She hopes the NCP will make a decision that will bring actual change to the behaviour of POSCO International and the financers.

The complainants request that the Korean NCP facilitate dialogue to persuade POSCO International to acknowledge the deforestation they have caused and provide the remediation. They also call on POSCO International to adopt and publish a comprehensive group-wide cross-commodity No Deforestation, No Peat, and No Exploitation (NDPE) policy to prevent further damages. It is also requested that POSCO International implement FPIC in their operation and ensure the right to water of the local communities relying on the Bian River.

They also request that the NPS engage with POSCO International to use their leverage and consider deforestation and infringement of the rights of indigenous people in their policies for socially responsible investment. The complainants request KEXIM to adopt policies for reviewing environmental and social risks in developing natural resources overseas and refrain from providing further loans to support PT. BIA’s operations that are causing adverse impacts.

Various other NGOs, such as WALHI Kalimantan Tengah (Friends of the Earth Indonesia), Milieudefensie (Friends of the Earth Netherlands), Friends of the Earth Melbourne, Friends of Earth U.S. support the filing of this complaint against POSCO International, NPS and KEXIM by KTNC Watch, Yayasan Pusaka, SKP KAMe and WALHI Papua.

Note for editors
For more information or interview requests you can contact:

KTNC Watch: Shin Young Chung (Attorney-at-Law), [email protected], +82-2-3478-0529

Yayasan Pusaka: Franky Samperante (Director), [email protected], +62-21 -7892137

 SKP KAMe: Father Anselmo Amo (Director), [email protected]

 WALHI Papua: Aiesh Rumbekwan (Executive Director), [email protected],  +62 813 4452 4394

※You can download the full report here

산림파괴 유산 갚기 위해 첫발 뗀 포스코인터내셔널,

기후 비상사태에 책임 있게 대응하는 글로벌 선진 기업으로의 전환을 기대한다

[caption id="attachment_205218" align="aligncenter" width="640"] 포스코인터내셔널의 인도네시아 파푸아 팜유 플랜테이션 PT BIA 전경 ⓒ Mighty Earth[/caption]

국내 최대 무역회사인 포스코인터내셔널이 지난 1일 산림파괴금지(NDPE) 정책을 발표했다. NDPE(No Deforestation, No Peat, No Exploitation; 산림파괴·이탄지파괴·주민 착취 없는 팜유 생산)정책에는 열대우림 보호, 지역 토착민 공동체의 권리 보장, 기업이 자행한 산림벌채에 대한 보상 조치가 포함된다. 팜유 업계가 채택하는 현존하는 자발적인 환경·사회정책 중 가장 높은 수준에 속한다. 포스코인터내셔널은 인도네시아 파푸아섬에서 팜유 플랜테이션 PT BIA을 운영하며 열대림 파괴와 선주민 인권침해 등에 연루돼 국제적으로 문제가 된 바 있다.

환경운동연합을 포함한 국내외 환경·사회단체들은 포스코인터내셔널의 열대림 파괴를 막고 현지 선주민 인권침해, 수질오염 등의 문제를 해결하기 위해 3년 이상 캠페인을 펼쳐왔다. NDPE 정책 채택은 주요 요구 사항이었다. 업계와 투자기관은 시민사회의 목소리를 반영해 NDPE 정책에 입각해 기업 활동을 하지 않는 포스코인터내셜과 거래관계를 종료하거나 투자를 철회했다. 2015년 노르웨이정부연기금(GPFG)의 투자 철회, 2017년 20개가 넘는 글로벌 팜유 생산·유통기업의 포스코인터내셔널 거래 대상 제외, 2018년 네덜란드공적연금(ABP)의 투자 철회가 대표적인 예다.

세계에서 세 번째로 큰 열대우림과 풍부한 생물다양성을 보유하고 있는 파푸아는 기후위기 시대에 인류가 전력을 다해 지켜야 하는 마지막 보루임이 자명하다. 포스코인터내셔널은 NDPE 정책에서 고보존 가치구역(HCV), 고탄소 저장지역(HCSA), 이탄지 등에 신규 개발을 금지하고, 산림 벌채한 면적에 상응하는 산림을 보호하겠다고 발표했다. 국제 환경단체 마이티어스가 인도네시아 환경산림부의 자료를 바탕으로 공개한 지도에 따르면 PT BIA가 개발을 시작하기 전인 2011년에는 19,000 ha 이상의 원시림이 농장 부지를 덮고 있었다. 그러나 PT BIA는 2018년까지 27,000 ha에 달하는 숲을 파괴했고 이는 농장 개발이 80% 가까이 끝났음을 의미한다. 이곳에 남아있는 온전한 산림은 약 7,000 ha에 지나지 않는다.

환경운동연합 국제연대 담당 김혜린 활동가는 “포스코인터내셔널이 산림 보존 계획을 밝힌 것은 매우 고무적이지만 여전히 지역사회에서는 파괴된 숲으로 인해 생계위협, 수질오염 등의 문제를 호소하고 있다. 포스코인터내셔널은 지역사회가 제기한 고통에 귀 기울여 분쟁 해결에 우선적으로 나서야 한다.”고 밝혔다.

환경운동연합이 참여하고 있는 기업과인권네트워크는 인도네시아 현지 단체인 PUSAKA, SKP-KAMe 등과 함께 지난해 12월 산림파괴, 선주민들의 사전인지동의(FPIC) 및 물에 대한 권리 위반에 대해 OECD 국내연락사무소(NCP)에 진정을 제기한 바 있다. 진정을 맡은 공익법센터 어필의 정신영 변호사는 “포스코인터내셔널이 발표한 NDPE 정책에는 이해관계자들과의 적극적인 소통이 포함되어 있다. NCP 절차를 통한 대화에 적극적으로 참여하는 것은 NDPE 정책이 실제로 이행되는 첫걸음이 될 것이다”라고 밝혔다.

우리는 이미 너무 많은 숲과 생명을 인간의 탐욕으로 인해 허무하게 잃었다. 더 이상 이윤이 생태계 절멸에 앞설 수 없음을 기억해야 한다. 포스코인터네셔널은 그들이 밝혔듯이 ‘기업시민’으로서 작금의 지구가열 위기사태에 대해 지구 공동체에 책임을 다해야 한다. 환경운동연합은 포스코인터내셔널의 NDPE 정책이 문서에만 머물지 않고 직접 행동으로 이어질 때까지 국내외 시민사회들과 함께 계속해서 활동할 것이다.

2020년 3월 4일

환경운동연합

Korea Federation for Environmental Movements held a press conference to condemn the South Korea Forest Service's “carbon-neutral” logging policy on Earth Day.

• The Forest Service plans to allow 72% of forests across the country to be logged as part of a “2050 Carbon-Neutral Forestry Sector” plan.

• Despite Forest Service’s claims, older trees retain higher carbon absorption capacity.

• Trees have ecological value beyond carbon absorption

• KFEM urges the Forest Service to completely cancel the plan

In the name of carbon neutrality, the Korea Forest Service has drawn up plans to cut down forests that are more than 30 years old and plant new trees. Such forests represent 72% of total forest area. On Earth Day on April 22, Korea Federation for Environmental  Movements(KFEM) criticized the Forest Service's large-scale logging policy at a press conference in front of the Yeouido Forest Vision Center. They called for the “2050 Carbon-Neutral Forestry Sector” plan to be withdrawn.

[caption id="attachment_215598" align="aligncenter" width="640"] ©KFEM[/caption]

The Korea Forest Service based its plan on research from the National Institute of Forest Science. The institute divided trees into 10-year age groups, and calculated that “old” trees with a level of 4 or higher have a sharp decline in carbon absorption of domestic greenhouse gases. The Forest Service argued that such trees should be felled because they will interfere with national carbon emissions reduction targets. In 2018, forests absorbed 46 million tons of carbon dioxide, and the above calculation estimates that the absorption will drop to 14 million tons by 2050 if the trees are not replaced.

However, it is not difficult to find research showing that older trees have higher carbon absorption capacity. According to a paper published in Nature in 2008, biomass stocks increase rapidly in forests over 100 years old, and the steepest increase is in forests over 300 years old. Professor Hong Seok-hwan, a member of the Natural Ecology Committee of KFEM, stated that “The Korea Forest Service's logic is limited to data for the first 20 to 50 years of growth. At this time, the amount of biomass stock increased for a short period of time and then plateaued for some time. This coincides with the period when trees that were densely growing in a natural state compete with each other and are rapidly culled through competition.” He concludes that the Forest Service’s justification for replacing existing forests with 3 billion new trees, is based on the unfounded assumption that this plateau in carbon absorption would continue long term.

The high carbon absorption capacity of large, old trees was even acknowledged by the Forest Service in a 2018 article in the Korea Forest Service National Arboretum, entitled "Living Fossils of Ecological History." Here researchers found that the difference in annual average carbon absorption capacity between large and normal-sized trees has widened recently (27.5 kg in the 1990s, 29.4 kg in the 2000s, and 35.8 kg in the 2010s). This means a continuous increase in carbon absorption capacity for large tree. In addition, the article stated that "The big trees are valuable forest assets that guarantee the uniqueness, naturalness, and historicity of the forest ecosystem and have a very high conservation value."

[caption id="attachment_215599" align="aligncenter" width="640"] ©Eco-Activist Researcher Choi Jinwoo[/caption]

At the press conference Jung Myung-hee, head of the Ecological Conservation Bureau of KFEM stated that, “now is not the time to cut down trees, but the time for the government to take the lead in conserving biodiversity,” She added, “tidal flats, which are the largest source of carbon trapping, should be restored; rivers effected by the Four Rivers Project should be re-naturalized; and areas with high biodiversity should be designated as protected areas so that they are no longer damaged by humans.” She concluded that, “if the goal of carbon neutrality is to be achieved this kind of policy of plundering trees should be abolished.”

[caption id="attachment_215602" align="aligncenter" width="640"] ©Eco-Activist Researcher Choi Jinwoo[/caption]

KFEM International Solidarity Director, Kim Hye-lyn, addressed the global dimensions of this issue, stating that “the Korea Forest Service has been criticized by the international community for providing billions in loans to Korean companies involved in the destruction of Indonesia's natural tropical forests and related human rights violations,” However, in the name of carbon neutrality, the service is planning to expand overseas greenhouse gas reduction projects (REDD+) to secure carbon credits by cutting down trees in other countries and planting production forests. She concluded, “I will never stand by and watch the use of other countries’ forests as a mere carbon business, I will respond with support from global civil society.”

At a press conference KFEM criticized the Forest Service's plan to achieve carbon neutrality by cutting down healthy forests, while ignoring the major changes that need to be made in industry, the economy, and consumption patterns if we are to tackle the climate emergency. KFEM called on the Korea Forest Service to:

• Completely withdraw the current "2050 Carbon-Neutral Forestry Sector” plan, and ensure civil society's participation in the revision process.
• Halt plans to log forests.
• Publicly disclose all details of the current plan, including planned deforestation, local ecological survey plans, new planting sites, planted tree species, and information on private companies involved and to whom the wood is intended to be sold.

▽Press Conference Statements 

South Korea Forest Service Opens up 72% of Forests to Logging

• We oppose decision to reduce minimum age for felling

• We oppose the use of the term carbon absorption to justify new policy, when economics and biomass production are at the forefront of this decision.

In last years updated NDCs, South Korea identified forestry as an important tool in its greenhouse gas reduction plans. In response the Korea Forest Service changed its definition of “old” trees from 50 to 30 years, opening up 72% of total forest area to be cut down and replaced with “young” trees. This includes forests in national parks and protected areas.

The National Institute of Forest Science justified the nationwide deforestation plan, by labelling it carbon-neutral, ignoring international research on the carbon absorption potential of old forests and the carbon emissions from logging. The designation of a 30-year tree as old, is also highly dubious, and not at all in sync with standards in other countries. A 30-year rotation age only makes sense in light of the country’s push for biomass energy production.

Fundamentally this decision, is yet another attempt by the Korean state to "solve” the climate crisis, without having to touch industry, the economy, or consumption patterns.  The Korea Federation for Environmental Movements calls on the Korea Forest Service to:

✔︎ Completely withdraw the current "2050 Carbon-Neutral Forestry Sector” plan, and ensure civil society's participation in the revision process.

✔︎ Halt plans to log forests.

✔︎ Publicly disclose all details of the current plan, including planned deforestation, local ecological survey plans, new planting sites, planted tree species, and information on private companies involved and to whom the wood is intended to be sold.

April 22, 2021

Korea Federation for Environmental Movements

Translated and Edited by Sam Macdonald

‘친환경’ 연료로 정부의 환경 혜택과 금융지원을 받는 바이오연료는 사실 생산 과정에서부터 막대한 온실가스 배출과 인권침해를 수반합니다. 아시아 각국의 기후, 환경, 사회를 담보하는 즉각적인 정책 변화가 필요합니다.

이번 웨비나에서는 한국, 인도네시아, 일본, 유럽연합의 시민사회가 모여 팜유 기반 바이오연료 공급, 생산, 소비 정책 현황을 공유합니다. 특히, ▲아시아 바이오연료 공급망과 투자 리스크 ▲최근 정책 동향 및 제안 ▲국내외 사례 및 정책 활동을 이야기하고자 합니다.

현행 바이오연료 정책의 문제를 해결하기 위한 노력에 여러분의 참여를 부탁드립니다. 본 행사는 에너지, 지속가능성, 인권, 자연보전, 환경정의에 관심있는 분은 물론, 투자분석 및 공적기금 운용 관계자 분들에게도 의미 있는 계기가 될 것입니다.

개요

세부일정(안)

문의

• (사)기후솔루션 송한새 ([email protected])
• (사)기후솔루션 우진택 ([email protected])