Wilmar International Announces No Deforestation Policy on Palm Oil

06 Dec 2013 --- Wilmar International, Asia’s leading agribusiness group, and global consumer goods leader Unilever have signed a Memorandum of Understanding (MoU) that aims to accelerate sustainable market transformation for palm oil. In parallel, and key part of the MoU, Wilmar launched a new “No Deforestation, No Peat, No Exploitation” policy that aims to advance an environmentally and socially responsible palm oil industry.

The policy, which can be found on Wilmar’s website (www.wilmar-international.com), establishes mechanisms to ensure that both Wilmar’s own plantations and companies from which Wilmar sources will only provide products that are free from links to deforestation or abuse of human rights and local communities. It includes measures to protect high carbon stock and high conservation value landscapes, and to ensure respect for community rights and support for development.

“We believe that the palm oil industry can provide a sustainable and affordable source of vegetable oil to meet rising global demand for responsible products,” said Wilmar Chairman and CEO Kuok Khoon Hong. “We can produce palm oil in a way that protects forests, clean air and local communities, all while contributing to development and prosperity in palm oil growing regions. We know from our customers and other stakeholders that there is a strong and rapidly growing demand for traceable, deforestation-free palm oil, and we intend to meet it as a core element of our growth strategy. We welcome more participation from the industry, financial institutions, and civil society to join this initiative, which will accelerate the achievement of our common goals.”

“We are truly impressed by the commitment Wilmar announced today,” said Pier Luigi Sigismondi, Unilever’s Chief Supply Chain Officer. “Unilever firmly believes that it is only through constructive dialogue and close cooperation that we can lead the transformation of the industry. Wilmar, as our strategic partner in palm oil, is clearly committed, with us, to accelerating the much needed sustainable market transformation and to helping us to achieve transparent, traceable and certified palm oil supply chains. We will continue to engage with our suppliers, NGOs, governments, the RSPO, end users and other industry stakeholders to develop collaborative solutions to halt deforestation, protect peat land, and to drive positive economic and social impact for people and local communities. We applaud Wilmar’s commitment and new policy and are looking forward to our other leading suppliers to following suit."

Wilmar will consult with a wide range of stakeholders including governments, local communities, civil society, non-profit organizations and business partners to guide effective implementation of the policy. As a crucial part of its commitment, Wilmar announced that it will become a member of The Forest Trust (TFT), a global non-profit organization that works with businesses to deliver responsible products. TFT’s Executive Director Scott Poynton and Climate Advisers’ Managing Director Glenn Hurowitz have been working closely with Wilmar to develop the policies. “We are grateful for the vision and contributions provided by Catapult and Climate Advisers to help achieve a sustainable palm oil industry, and look forward to working with them to protect forests, wildlife, and the climate,” Kuok said. “TFT’s proven track record and immense expertise will ensure that our commitment is implemented rapidly, effectively, and with broad involvement from stakeholders. We will work closely with our suppliers to provide the support they need to transition to sustainable production.” “Wilmar’s new policies include all the elements needed for success: a commitment to production that doesn’t involve deforestation, peatland conversion, or exploitation, and a credible plan for implementation,” said Scott Poynton, Executive Director of TFT.

“Given its central role in the palm oil industry, Wilmar’s commitment has the potential to truly transform agricultural production to a responsible basis,” said Glenn Hurowitz. “Wilmar and Unilever’s efforts can be a model for other companies that want to grow their businesses in a way consistent with the urgent need to address deforestation and climate change.”

Greenpeace said that Wilmar’s policy has the potential to be a landmark win for the world’s forests and the people that depend on them for their livelihoods.

Bustar Maitar, head of the Indonesia forest campaign at Greenpeace International said: “Wilmar has responded to years of pressure from Greenpeace, other NGOs, and a growing movement of consumers around the world demanding clean palm oil and an end to forest destruction. Wilmar’s commitment to No Deforestation has the potential to transform the controversial palm oil industry.”

“Wilmar’s policy shows that the sector has a massive problem, and while this policy is great news for forests and tigers, its success will be judged by Wilmar’s actions to implement and enforce it. Our challenge to Wilmar is this: will it now immediately stop buying from companies such as the Ganda Group, which is closely linked to Wilmar and is involved in ongoing forest clearance, illegal peatland development and social conflict?”

Over the last seven years, Greenpeace has repeatedly exposed Wilmar’s role in gross acts of forest destruction; sourcing from national parks, destroying prime tiger habitat, sourcing from suppliers linked to orang-utan ‘graveyards’ or this year’s forest fire crisis in Sumatra, to name a few.

“For years companies, including Wilmar, have been hiding behind so called sustainability bodies such as the Roundtable on Sustainable Palm Oil. Greenpeace will be closely monitoring how Wilmar will put these words into action, and will welcome Wilmar’s immediate end to all trade with companies involved in deforestation. The gauntlet is thrown to other palm oil traders such as Cargill, Musim Mas and Sime Darby to release similar policies,” added Bustar.