Palm oil is among the most important global commodities and contributes significantly in increasing state income; however, many palm oil industries are still not environmentally friendly. This study aimed to analyze the challenges and opportunities of adopting Green Productivity (GP) practices the industry of palm oil in Jambi, Indonesia. This study used a qualitative approach and comprehensive secondary data analysis, including academic publications, policy reports, and economic-social data. This research analyzed the relationship between socio-economic aspects and environmental sustainability, with a focus on smallholder farmers' livelihood strategies. Farmers face several challenges in implementing GP strategies, particularly in land legality, income diversification, and environmental management. These factors are critical for improving both industrial and environmental sustainability. Green Productivity offers a potential pathway for integrating environmental sustainability with increased productivity of the palm oil industry. The results emphasize the necessity for policy support to address the socio-economic challenges and promote sustainable practices. Moreover, it is emphasized that in Green Productivity, nature serves as unpaid labor. © 2025 The authors.