Controversial Buyout Raises Environmental Concerns

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While the purchase of Canada’s Tim Hortons by Burger King has been met with resistance and questions from many parties, the environmental concerns of the acquisition have received less attention. There is no denying that a buyout from an American company may pose a threat to the classic Tim Hortons Canadian tradition, however, the buyout could increase the stress on the Southeast Asia rainforest.

The increased global demand for palm oil has lead to massive deforestation, highly concentrated in Southeast Asia. Both Burger King and Tim Hortons use palm oil, and have had “appalling track records on palm oil,” according to Lael Goodman, an analyst with the Union of Concerned Scientists. Although Burger King is now a member in the Roundtable on Sustainable Palm Oil, the non-profit organization has also been met with some scrutiny.  The major issue that environmental groups are having with palm oil grown in deforested land is the negative pressure it is putting on orangutan, elephant, tiger, and rhino populations in Southeast Asia, as well as the conflict arising between developers and locals. If Burger King continues on their proclaimed mission of sourcing sustainable palm oil, the acquisition of Tim Hortons could be good news for the suffering rainforest.

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Sources: http://www.huffingtonpost.com/2014/08/28/burger-king-palm-oil_n_5729630.html

http://www.theglobeandmail.com/report-on-business/environmental-groups-take-aim-at-tim-hortons-use-of-palm-oil/article19000503/

http://www.businessgreen.com/bg/news/2362201/burger-king-urged-to-use-tom-hortons-acquisition-to-correct-appalling-palm-oil-policies

Photo: http://environmentalgeographies.wordpress.com