"Snack giant PepsiCo sourced palm oil from razed Indigenous land – investigation", 18 April 2024

...The US food and drink giant PepsiCo has been linked through its supply chain to Amazon deforestation and the invasion of Indigenous lands in Peru, the Bureau of Investigative Journalism (TBIJ), Mongabay and Peruvian outlet Ojo Público can reveal.

For at least three years, PepsiCo’s Peruvian suppliers have been sourcing palm oil from deforested territory claimed by the Shipibo-Konibo people in Ucayali, eastern Peru.

The company...runs a factory in Mexico that buys Peruvian palm oil after it has been processed at a Mexican refinery. That refinery buys from a Peruvian consortium, Sol de Palma, that shares storage facilities with Ocho Sur, a notorious US-funded business accused of repeated environmental and human rights violations.

The storage facilities mix the various batches of palm oil, meaning PepsiCo products likely contain Ocho Sur oil despite no longer buying directly from the company...

According to CCCA’s analysis, PepsiCo manufactures at least 15 products that contain Peruvian palm oil refined in Mexico – among them Doritos, Cheetos and Gatorade. It has pledged to make 100% of its palm oil supply deforestation-free by the end of 2022 and for its operation to be net zero by 2040...

PepsiCo said: “We take all inquiries like this seriously and have initiated an investigation through our established grievance process to assess whether any action on our part is required.” The company stressed that Ocho Sur is not a direct supplier to the company, and said it has engaged its direct suppliers to better understand their ties to Ocho Sur and ensure they take corrective actions if needed.

Ocho Sur said that it could not be held responsible for the actions of the companies whose assets it had taken over. It referred TBIJ to a document submitted to the UN in December 2023 that repeatedly states that it has no financial or legal links to one of those businesses. In the document it also strenuously denied sowing division in local communities and said that since its founding, the company had made special efforts “to forge a friendly, fruitful and mutually respectful relationship” with Indigenous and other groups. It said that it fully complies with all obligations with respect to Indigenous peoples’ rights and the environment and does not allow deforestation in its supply chain.

On the subject of environmental permits, Ocho Sur added: “The certification has been requested for a long time and [Midagri, the agriculture ministry] has failed to make a statement on the matter, granting it, as it should, or providing reasonable arguments to justify its refusal.”

Oleomex, owner of the Mexican refinery that supplies PepsiCo’s factory, said: “The oil we supply to our customer meets all sustainability standards as it is RSPO-certified oil.” However, it added that supply contracts with Ocho Sur were negotiated through a third party and that it has agreed to suspend them until the complaints raised in the investigation are resolved.

Sol de Palma did not comment...