Indonesia: Companies unable to confirm absence of deforestation in their palm oil supply chain, says Greenpeace study

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In its study "Cutting deforestation out of the palm oil supply chain - Company Scorecard", Greenpeace assesses 14 companies that committed to "no deforestation" to understand the actions they take to implement their policies, and their impact in Indonesia.

The companies reviewed are: Colgate-Palmolive, Danone, Ferrero, General Mills, Ikea, Johnson & Johnson, Kellogg, Mars, Mondelēz International, Nestlé, Orkla, PepsiCo, Procter & Gamble, Unilever.

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Article
3 March 2016

Colgate-Palmolive, Johnson&Johnson, and PepsiCo fail to keep palm oil promises

Author: Esther Han, Sydney Morning Herald (Australia)

...A survey of 14 companies that made "no deforestation" promises shows none of them can say with certainty there is no deforestation involved in their palm oil supply chain, and none has published a full list of suppliers.

Only one - Italian chocolate maker Ferrero - is able to trace nearly 100 per cent of its palm oil back to the plantation...

Greenpeace analysed each of the companies' responsible sourcing, transparency and industry reform efforts, and concluded Colgate-Palmolive, Johnson&Johnson and PepsiCo were "failing"…

A Colgate-Palmolive spokeswoman said the company was proud of its goals and progress towards fighting deforestation, through its partnership with the Forest Trust and membership of the Roundtable on Sustainable Palm Oil (RSPO).

"We are targeting over 75 per cent certified mass-balance oils in 2016 and are committed to achieve our goals for a deforestation-free palm oil supply chain within four years," she said…

A PepsiCo spokeswoman said the company took the issue of deforestation and the sourcing of sustainable palm oil seriously.

"Our action plan reflects our enhanced efforts, including traceability to the mill level by 2016 and the sourcing of 100 per cent physically certified sustainable palm oil," she said….

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Article
3 March 2016

Leading brands unsure if palm oil in products comes from rainforest land

Author: Kate Lamb, Guardian (UK)

Some of the world’s largest consumer companies are clueless as to whether palm oil they buy from Indonesia is linked to rainforest destruction, new analysis from Greenpeace shows.

The environmental group surveyed 14 companies including multinationals such as PepsiCo, Mars and Unilever, and found that none could confidently claim that no Indonesian rainforest was destroyed in the making of their products...

"...[O]ur survey shows that brands are not doing enough to stop the palm oil industry ransacking Indonesia’s rainforests.” [said Greenpeace’s Annissa Rahmawati]...

According to Greenpeace, PepsiCo, Johnson & Johnson and Colgate-Palmolive were among the worst-performing companies in the report, placed in the lowest “failed promises” category.

Most companies were graded as “getting there” for making some progress toward their zero-deforestation goals, but only two companies, Nestle and Ferrero were considered to be fully on track.

Johnson & Johnson declined to comment on the Greenpeace report but said it was committed to sustainable practices.

“Johnson & Johnson has an obligation to preserve the environment and we are implementing programs across the world to limit our footprint and environmental impact,” it said...

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Report
1 March 2016

Cutting deforestation out of the palm oil supply chain - Company Scorecard

Author: Greenpeace

In recent years, the world’s biggest companies have woken up to the environmental costs associated with palm oil and the other commodities they buy. Nowhere are those costs more evident than in Indonesia...

Many consumer goods companies, along with the commodity traders that supply them, have committed to remove deforestation from their supply chains. These commitments are promising, but forest destruction is actually increasing in Indonesia...Greenpeace analysis indicates that the palm oil industry is a leading cause of deforestation and peatland destruction.4 The situation is made worse by deep-seated, systemic problems, including legal barriers and the absence of published concession maps that show who controls forested land...

This all presents a serious challenge to companies that source commodities from Indonesia. They have promised their customers and other stakeholders that they will ensure the palm oil they buy is not linked to deforestation. Yet our analysis shows that companies have yet to take control of their supply chains and are unable to say with any confidence that the palm oil they use is not driving the destruction of rainforests, threatening endangered species or contributing to social conflicts in Indonesia...

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