The palm oil industry plays a vital role in global economies but simultaneously raises pressing concerns regarding sustainability due to its environmental impacts. This systematic literature review examines the consequences of palm oil cultivation, particularly deforestation, biodiversity loss, and pollution. The review employed a systematic literature review approach adhering to PRISMA guidelines, searching two major databases (Scopus and Web of Science) using a single-line search string that included keywords like "Oil Palm," "Environmental Sustainability," and "Deforestation". Out of 75 initial records from various sources, 49 studies were ultimately included in the review. The rapid growth of oil palm plantations causes deforestation, disrupts ecosystems, increases carbon emissions, and leads to severe biodiversity loss, threatening ecological balance and placing numerous plant and animal species at risk Industrial activities cause pollution through chemical waste, worsening environmental damage. Sustainability initiatives like the RSPO promote responsible palm oil production that balances economic growth with conservation. However, socio-economic challenges including labor shortages, land disputes, and resource conflicts continue to hinder fair development and the achievement of sustainable and equitable palm oil practices. The meaningful participation of local communities in sustainable practices is also vital in ensuring long-term benefits and social inclusivity. Overall, the findings emphasize the urgency of collective responsibility and collaborative action among governments, industries, and civil society to mitigate the negative consequences of palm oil cultivation. Strengthening stakeholder cooperation is critical to safeguarding biodiversity, addressing environmental degradation, and ensuring that economic benefits are achieved without undermining global sustainability goals.

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