The Green Inferno: The Destructive Viscose Empire Behind Indonesia's Deforestation

RGE's response to the Greenpeace investigation has been restrained. The conglomerate issued a brief two-page statement denying control over the companies identified in the report, while avoiding detailed engagement with the specific allegations. This measured response contrasts sharply with the comprehensive evidence presented by Greenpeace, which includes satellite imagery, corporate registry analysis, and on-ground documentation of deforestation activities.

The Forest Stewardship Council (FSC), which has certified some RGE operations, too is under pressure to reassess its relationship with the company. Environmental groups allege that FSC certification has been used to greenwash operations that continue to destroy forests through shadow companies. Any potential decertification could significantly impact RGE's market access and reputation, as FSC certification carries substantial commercial value in global markets.

International brands sourcing from RGE-linked suppliers will now have to take into account serious reputational risks. But, the way things stand, the complex corporate structure makes it difficult for downstream purchasers to verify that their supply chains are truly deforestation-free. This challenge highlights the limitations of current due diligence practices and the need for more sophisticated tracking mechanisms across global commodity chains.

Financial institutions are similarly scrutinised for their exposure to RGE-related entities. Banks and investors increasingly face demands to implement stricter environmental, social, and governance (ESG) criteria that would identify and exclude companies engaged in deforestation. The potential for stranded assets and reputational damage has made sustainable finance frameworks more critical than ever.

Implications for Global Supply Chain Accountability

The Greenpeace findings clearly show fundamental weaknesses in how global supply chains monitor and prevent deforestation. RGE's products—including palm oil, pulp, and paper—flow into countless consumer goods worldwide, from food and cosmetics to packaging and textiles. This extensive market penetration means that millions of consumers may unknowingly support deforestation through their purchasing decisions.

For multinational corporations, the investigation underscores the inadequacy of surface-level supplier relationships. Effective supply chain management requires deep understanding of ownership structures, operational practices, and environmental impacts throughout the entire production network. The sophisticated nature of RGE's shadow company system demonstrates that determined actors can exploit gaps in corporate due diligence.

Certification schemes face particular scrutiny following these revelations. While those like the FSC provide important standards for responsible forestry, their effectiveness depends on rigorous enforcement and the ability to see through complex corporate structures. The RGE case suggests that certification systems must evolve to address increasingly sophisticated attempts to circumvent environmental commitments.

Government regulators in Indonesia and internationally will now have to take head on the challenge of enforcing environmental laws against entities designed to evade accountability. Cross-border information sharing, beneficial ownership registries, and enhanced penalties for environmental crimes become essential tools in addressing corporate structures that span multiple jurisdictions.

The broader implications extend to ongoing debates about corporate responsibility and the effectiveness of voluntary sustainability commitments. The disconnect between RGE's public pledges and the documented forest destruction suggests that self-regulation alone cannot address systemic environmental challenges.

The Under the Eagle's Shadow investigation represents more than an exposé of a single company's practices—it brings to light systemic challenges facing efforts to protect the world's remaining forests. The sophisticated corporate structures deployed by RGE reflect broader patterns across extractive industries, where complex ownership arrangements shield operations from scrutiny.

Addressing these challenges requires coordinated action across multiple fronts. Enhanced regulatory frameworks must close loopholes that enable shadow company operations while improving cross-border cooperation on environmental enforcement. Certification systems need stronger independence, more frequent monitoring, and clearer consequences for violations.

Financial markets increasingly recognise deforestation as both an environmental and business risk. Investors and lenders must develop more sophisticated tools for identifying exposure to problematic operations, even when hidden behind complex corporate structures. The integration of satellite monitoring, artificial intelligence, and blockchain technology offers promising avenues for improving supply chain transparency.

Consumer awareness and demand for sustainable products continue to grow, creating market incentives for genuine environmental responsibility. However, the RGE case demonstrates that consumers need better tools and information to make truly informed choices about the environmental impact of their purchases.

Ultimately, protecting Indonesia's remaining forests requires moving beyond voluntary commitments to enforceable standards backed by meaningful consequences. The Greenpeace investigation provides a roadmap for the kinds of investigative work needed to hold powerful corporations accountable, while highlighting the urgent need for systemic reforms across the global economy.

The stakes could not be higher. Indonesia's forests are among the world's most biodiverse and carbon-rich ecosystems. Their continued destruction not only threatens countless species with extinction but also undermines global efforts to address climate change. The time for half-measures and hidden operations has passed—transparency and accountability must become the foundation of sustainable business practices in the 21st century.

This investigation builds on years of reporting by environmental groups including Rainforest Action Network, Mongabay, and the International Consortium of Investigative Journalists, all documenting RGE's continued links to deforestation despite sustainability pledges.