Prior studies have identified significant flaws in the disclosure practices of palm oil companies, revealing a lack of comprehensive information on ‘environmental and biodiversity conservation efforts’, ‘sustainable practices’, and ‘contributions to responsible consumption and production’. These deficiencies have fuelled ongoing disputes between palm oil producing countries and global communities, creating tensions that impede industry progress and performance.

Grounded in Complex Adaptive System (CAS) Theory, this research conceptualizes the palm oil industry as a complex system involving multiple interdependent actors: government entities, private companies, and international organizations. While transparency initiatives implemented by governmental (such as The Malaysian Sustainable Palm Oil (MSPO)) and international organizations (such as Roundtable on Sustainable Palm Oil (RSPO)) were intended to complement and strengthen company reporting, further investigation reveals these initiatives also exhibit substantial weaknesses, particularly regarding the scope and content of disclosed information. Consequently, these initiatives have failed to adequately address information asymmetry and transparency within the industry, contributing to persistent and unresolved palm oil disputes.

The primary objective of this study is to develop a comprehensive environmental disclosure framework designed to assist reporting entities within the palm oil industry in elevating their disclosure standards by providing relevant, high-quality information. Specifically, this research aims to identify global stakeholders' needs and expectations regarding environmental information disclosure, with particular attention to European Union perspectives. Based on these findings, a disclosure framework grounded in CAS Theory will be developed and subsequently applied to assess disclosure quality across the palm oil industry.

Methodologically, this study will conduct focus group with stakeholders at multiple levels of the palm oil industry and will perform content analysis of narratives in reports made by the reporting entities at the government, companies, and international organizations. The final stage will involve statistical analysis for hypothesis testing, providing empirical evidence on the effects of disclosure quality on industry performance.

The findings of this study are particularly significant in light of the EU Deforestation-free Regulation (EUDR), offering timely guidance to industry participants seeking to prepare information that complies with these rigorous new standards while addressing the broader challenges of environmental sustainability and stakeholder trust.