LONDON: Of the seven commodities sectors driving deforestation, palm oil companies are doing the most to alleviate their environmental impact following years of public pressure, a study by a global environmental disclosure group shows.
The CDP study, which will be released on Monday but was given to Reuters in advance, is likely to ramp up pressure on commodity companies to go green given the progress in palm oil, which is widely blamed by environmentalists for much of the destruction of tropical rainforests.
Based on responses from more than 550 leading companies in the agri-commodities sector, the study found nearly all who use or produce palm oil are taking at least one industry accepted measure to address deforestation, such as having sufficiently ambitious traceability targets.
Companies involved with rubber, by contrast, are doing the least, while the coffee and cattle products sector also perform poorly, the study found.
“Palm oil has been the subject of public campaigns in recent years. Companies see palm oil as a reputational risk,” it noted.
CDP measures the environmental risk and impact of more than 10,000 companies, cities, states and regions on behalf of leading global investors.
Sareh Forouzesh, associate director of forests at CDP said: “There is a solid business case for companies (to source) commodities sustainably.”
Companies are requested to make disclosures through CDP because they use or produce the seven commodities that drive deforestation: timber, palm oil, soy, cattle, rubber, cocoa and coffee.
However, only a third of companies asked to disclose to the CDP study did so. This still represents significant progress compared to previous studies but also shows a gap in the commodity industry’s transparency and, most likely, in its actions to tackle deforestation.
Scientists say protecting forests is one of the cheapest and most effective ways to curb climate change because trees suck in carbon dioxide, the main gas heating up the planet.
According to the United Nations, 10 million hectares of forest were destroyed annually in the five years since 2015.
Facing public pressure, palm oil firms are going green — study
https://arab.news/g3b5d
Facing public pressure, palm oil firms are going green — study
- Study: Nearly all who use or produce palm oil are taking at least one industry accepted measure to address deforestation
Closing Bell: Saudi main index rises to 10,894
RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward trend for a third consecutive day this week, gaining 148.18 points, or 1.38 percent, to close at 10,893.63 on Tuesday.
The total trading turnover of the benchmark index stood at SR6.05 billion ($1.61 billion), with 144 listed stocks advancing and 107 declining.
The Kingdom’s parallel market Nomu also rose by 81.35 points to close at 23,668.29.
The MSCI Tadawul Index edged up 1.71 percent to 1,460.89.
The best-performing stock on the main market was Zahrat Al Waha for Trading Co., with its share price advancing 10 percent to SR2.75.
Shares of CHUBB Arabia Cooperative Insurance Co. increased 8.27 percent to SR23.04, while Abdullah Saad Mohammed Abo Moati for Bookstores Co. saw its stock climb 6.17 percent to SR50.60.
Conversely, the share price of Naseej International Trading Co. declined 9.90 percent to SR31.48.
On the announcements front, Arabian Drilling Co. said it secured three contract extensions for land rigs with energy giant Saudi Aramco, totaling SR1.4 billion and adding 25 active rig years to its backlog.
In a Tadawul statement, the company said one rig is currently operational, the second will begin operations by the end of January, and the third — currently suspended — is expected to resume operations in 2026.
Since November 2025, Arabian Drilling has secured seven contract extensions amounting to SR3.4 billion, representing 55 committed rig years.
The three contracts have durations of 10 years, 10 years, and five years, respectively.
“Securing a total of SR1.4 billion in new contracts and expanding our backlog by 25 rig-years demonstrates both the trust our clients place in us and our ability to consistently deliver quality and reliability,” said Ghassan Mirdad, CEO of Arabian Drilling, in a statement.
Shares of Arabian Drilling Co. rose 3.15 percent to SR104.70.
Separately, Alkhorayef Water and Power Technologies Co. said it signed a 36-month contract valued at SR43.35 million with National Water Co. to operate and maintain water networks, pumping stations, wells, reservoirs, and related facilities in Tabuk.
In October, Alkhorayef Water and Power Technologies Co. announced it had been awarded the contract by NWC.
In a Tadawul statement, the company said the financial impact of the deal began in the fourth quarter of 2025.
The share price of Alkhorayef Water and Power Technologies Co. declined 0.49 percent to SR120.70.
