Malaysia: Kellogg, Mars & Unilever in process of dropping palm oil supplier IOI Group following RSPO suspension over environmental & social concerns
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Author: David Fogarty, Straits Times (Singapore)
7 Apr 2016
Three of the world's top food and consumer goods companies that make Dove soap, M&M's and Kellogg's Corn Flakes have dropped a leading Malaysian palm oil producer because of deforestation in its plantations in Indonesia.
Unilever, which owns over 400 brands including Dove, announced last week that it has begun cancelling its supplier agreements with palm oil producer and trader IOI Group over evidence of bad environmental practices in Indonesia.
IOI is Malaysia's No. 2 palm oil company by production and a top 10-listed global palm oil firm. Unilever is one of the world's top buyers of palm and palm kernel oil and refined products.
United States food giants Mars and Kellogg's have also announced that they are in the process of removing IOI as a supplier by progressively dropping contracts with IOI's refining subsidiary IOI Loders Croklaan, which has refineries in Malaysia and Holland…
The green image of one of Malaysia’s largest conglomerates suffered a major blow on Friday with its suspension from the world’s largest association for ethical palm oil production, the RSPO.
IOI Group was one of the founding members of the Roundtable on Sustainable Palm Oil, but it has been suspended over its operations in the Ketapang area of Indonesian Borneo, where three of its subsidiaries are alleged to have violated a raft of RSPO standards meant to prevent rainforest destruction and social conflict, and some laws…