Nestlé Resumes Palm Oil Purchases from SMART

19-Sep-2011 --- SMART then implemented innovative processes and supply chain controls to ensure that the delivered oil is fully traceable from the supplying plantations, through processing and transportation to the Nestlé factory in Indonesia.

Sep 19 2011 --- PT SMART Tbk (SMART) has announced that Nestlé has placed an order to resume palm oil purchases from the company. SMART views this order as an acknowledgement of its on-going sustainability commitments and efforts to find solutions to continuously produce palm oil in a sustainable, environmentally and socially responsible manner.

In May 2010, Nestlé, together with international NGO, The Forest Trust (TFT) announced Responsible Sourcing Guidelines  (RSGs), a set of critical requirements to guide the Nestlé procurement process and to ensure compliance with the Nestlé Supplier Code. In late 2010 SMART's parent company Golden Agri-Resources (GAR) developed a joint action plan with TFT to help GAR ensure that its subsidiaries could meet the Nestlé RSG requirements. To ensure that oil delivered to Nestlé meets the RSG requirements, the plantations supplying Nestlé were subject to TFT assessments. SMART then implemented innovative processes and supply chain controls to ensure that the delivered oil is fully traceable from the supplying plantations, through processing and transportation to the Nestlé factory in Indonesia. This full traceability across the supply chain has been further audited by Nestlé-appointed international agency, TÜV Rheinland Group.

Mr Daud Dharsono, President Director of SMART said: We welcome Nestle's decision which is an acknowledgement of our  sustainability efforts. This represents an important milestone in our journey toward the continuous production of sustainable palm oil. Sustainability is an on-going journey and we are committed to managing the environment responsibly and empowering communities. We believe that our achievement of full traceability with this order is another significant milestone.

GAR has also been working with TFT on the implementation of a Forest Conservation Policy (FCP) which aims to ensure that GAR has no deforestation footprint and also seeks to achieve long-term sustainable growth for GAR and the palm oil industry. The FCP focuses on there being no development on High Carbon Stock (HCS) forests, where a provisional definition of exceeding 35 tonnes of carbon per hectare will be used as HCS  forest definition; no development on High Conservation Value (HCV) forest areas; no development on peat lands; to have free, prior and informed consent from indigenous and local communities and compliance with all relevant laws and National Interpretation of Roundtable on Sustainable Palm Oil (RSPO) Principles and Criteria.

Added Mr Dharsono: "We believe the FCP is a strong platform where all stakeholders can collaborate to find solutions for sustainable palm oil. We would like to thank TFT, Greenpeace and all other stakeholders for their positive contributions and collaboration to implement the FCP initiative."

In addition to the FCP and as part of a holistic approach to sustainability, GAR is developing a Yield Improvement Policy to improve its productivity. The company is also developing a Social and Community Engagement Policy to guide its approach to conflict resolution. GAR is collaborating with TFT and is in constructive dialogue with a number of other civil society organisations to ensure that it develops robust policies which represent best practice.

Related Articles

Business News

Nestle youth initiative to develop next generation of entrepreneurs

19 Sep 2017 --- A new initiative from Nestlé aims to create the next generation of front-runners for the company, with the Swiss giant aiming to nurture successful agripreneurs, entrepreneurs and game-changers. Announcing a new ambition for its global youth initiative: Nestlé needs YOUth, the company says that by 2030 it will help 10 million young people around the world have access to economic opportunities.

Business News

“Dirty cocoa beans” getting into the supply chain

15 Sep 2017 --- UK national newspaper, The Guardian, has written an expose about what it describes as “dirty cocoa” following an investigation which involved the news organization visiting the Ivory Coast, where much of the world’s cocoa grows. The article – entitled “Chocolate industry drives rainforest disaster in Ivory Coast” says the world’s chocolate industry is “driving deforestation on a devastating scale in West Africa.”

Business News

Nestle acquires majority interest in Blue Bottle Coffee

15 Sep 2017 --- Nestlé has entered the fast-growing, super premium coffee shop segment by acquiring a majority stake in Blue Bottle Coffee, a Californian-based high-end specialty coffee roaster and retailer that has built a strong reputation among discerning coffee drinkers. 

Business News

Kellogg's and Mondelez named in Dow Jones Sustainability Index

14 Sep 2017 --- The Kellogg Company and Mondelez International have both been named in the Dow Jones Sustainability Index, an independent validation of the important work the food giants are carrying out in the area of corporate responsibility. The DJSI serves as a benchmark for investors who recognize sustainable business practices as a critical component to generating long-term shareholder value.

Business News

Bunge to acquire 70 percent stake in IOI Loders Croklaan for US$945m

13 Sep 2017 --- Bunge plans to strengthen its edible oil presence with a US$946 million deal to acquire a 70 percent controlling ownership interest in IOI Loders Croklaan Corporation which will retain a 30 percent ownership interest. The global agribusiness and food company has entered into a definitive agreement to acquire the majority ownership interest in IOI Loders Croklaan from IOI Corporation Berhad, comprising €297 million (US$356 million) and US$595 million in cash. 

More Articles