Indonesia: PepsiCo’s new palm oil commitment criticised for exempting partner Indofood from heightened social & environmental standards; PepsiCo responds

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24 November 2015

Indofood: A Massive Loophole for Conflict Palm Oil

Author: Rainforest Action Network

Following two years of escalating public outcry over its use of Conflict Palm Oil, PepsiCo released a new palm oil commitment…that environmental and human rights organizations immediately labeled as both inadequate and incomplete. PepsiCo’s newly announced commitment specifically exempts its joint venture partner Indofood from adhering to its heightened social and environmental standards. Indofood produces the PepsiCo products containing palm oil in Indonesia. It is the third largest private palm oil company in Indonesia and remains the last company among the top three palm oil growers yet to adopt a responsible palm oil policy…[We invited Indofood and PepsiCo to respond; PepsiCo response provided; Indofood has not responded.]

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Company response
23 November 2015

PepsiCo response

Author: PepsiCo

PepsiCo recognizes the social impact, including human rights, inherent to sustainable sourcing, and is working to realize zero deforestation in our company owned and operated activities and supply chain.  To support this, we are committed to a 100-percent sustainable palm oil policy for all PepsiCo brands and products, regardless of the source of production…

…For joint ventures, the company is working diligently to develop sustainable palm oil sourcing agreements for PepsiCo products and will continue to report on its progress…

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