Shariah Compliant Palm Oil Companies and Sustainability Certification in Malaysia
Shariah Compliant Palm Oil Companies and Sustainability Certification in Malaysia
Author: Siti Hanisah Fuad & Shahida Shahimi
Publisher: UKM Press
ISBN: 9789672388883
Weight:
Page: 71
Year: 2020
Price: RM20
Sustainability certifications are introduced to ensure the sustainable operation and production of palm oil. The most internationally recognized sustainability certification is Roundtable on Sustainable Palm Oil certification (RSPO). Meanwhile, Malaysia has initiated its own certification namely, the Malaysian Sustainable Palm Oil certification (MSPO). In 2017, there are 39 listed palm oil companies in Bursa Malaysia and the majority of them are shariah compliant. As shariah-compliant companies, they are expected to fulfill maqasid al-shariah (objectives of shariah) including preservation of life and the environment in the operation and production of palm oil. However, only 16 out of 31 shariah-compliant companies adopted sustainability certification. The non-adoption may signal companies' ignorance of environmental preservation. Given the recent announcement by the Malaysian government on the mandatory MSPO adoption by the end of 2019, these companies have no option but to consider sustainability certification. Therefore, it is important to examine the effect of sustainability certification on shariah-compliant palm oil companies in Malaysia. This book will help to promote sustainable practices among shariah-compliant palm oil companies through the adoption of sustainability certification and provides a better understanding of certification.
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