Our aspiration is to deliver this by the end of 2020 through: Our strategy is informed by our understanding of the key sustainability challenges facing palm oil, including deforestation, biodiversity loss, the role of smallholder farmers, and respect for human rights. The objective of the group was to support members in developing and implementing approaches to sustainable landscapes. Jakarta. We will continue working with our suppliers to increase visibility of the mills in our palm oil supply chain. Jakarta, Indonesia – Palm oil suppliers to the world’s largest brands, including Unilever, Nestlé, Colgate-Palmolive and Mondelez, have destroyed an area of rainforest almost twice the size of Singapore in less than three years, according to a new investigation by Greenpeace International. PepsiCo has acknowledged the difficulty of monitoring and enforcing sustainability in the Leuser region, and said it will accelerate the implementation of its NDPE policy there this year. “For full-time employees, they got severance pay twice, but for casual workers, they didn’t get anything.”. With their CO 2 and methane emissions, palm oil-based biofuels actually have three times the climate impact of traditional fossil fuels. In addition to formal risk assessments, we also rely on other sources of information, including: Engagement with direct and indirect suppliers. We can therefore identify more capable partners who are poised to help drive industry leading actions, as well as suppliers at the other end of the spectrum where we can focus capability building efforts to improve their foundational programs. So do its elephants. Some of the biggest brands in the world are still sourcing palm oil from a supplier known to clear intact forest in the critical ecosystems of Indonesia. A supplier of palm oil with links to major brands including Unilever, Nestle, PepsiCo and Mars, has been destroying rainforests in a protected … Specifically, we seek to foster continuous improvement through our Supplier Scorecards and to identify risks of non-compliance and necessary corrective actions to address issues that arise through our agricultural grievance process. Previously it had committed to no longer buying palm oil from cleared forests or peatlands as of the end of 2015. Greenpeace says palm oil-fueled deforestation remains rampant in countries like Indonesia and Malaysia because global consumer brands like Unilever, Nestlé and PepsiCo … Interim Definition from the Traceability Working Group (TWG). FAIR Company-Community Partnerships address sustainability, human rights, and economic development issues holistically through a multi-stakeholder, inclusive, and landscape-based approach. Feedback from assessments and audits conducted as part of our sustainable sourcing and sustainable agriculture programs. PepsiCo has been an active member of the group since 2017. We have a complex global supply chain with 39 direct suppliers sourcing from more than 1,600 mills and tens of thousands of farmers who grow the palm. "PepsiCo's palm oil policy is a step in the right direction, but it doesn't really do enough to prevent deforestation," said Katherine Tu, campaign leader at SumOfUS. Smallholders and indigenous people who have … The world’s second largest food and drink company PepsiCo, has come out with a renewed commitment to promote sustainable palm oil production, including by only buying palm oil that does not cause deforestation, is not developed on peat and does not exploit the rights of indigenous peoples, workers and local communities. Enhancements to our grievance mechanism to improve its effectiveness and efficiency in line with the UNGPs; Improved coordination with others that share the grievance in question, including peer companies and suppliers; Formal guidance for managing non-compliances with suppliers and business partners, including criteria by which actions up to and including suspension, and requirements for re-entry of suppliers would occur; Public disclosure of grievances linked to PepsiCo's agricultural supply chain, including actions taken by PepsiCo, and its suppliers and business partners to address them; and. The update strengthens our policy, including by: We will review our policy and update our Implementation Plan during 2020 as we continue to drive progress in our own supply chain and contribute to a more sustainable palm oil industry. Updating our Global Policy on Sustainable Palm Oil to reflect our commitment to No Deforestation, No Development on Peatlands and No Exploitation of Indigenous Peoples, Workers and Local Communities (“NDPE commitments”); Continuing to disclose the direct suppliers and mills from which we sourced; Playing an active role in industry platforms such as the Consumer Goods Forum (CGF) and AIM – Progress; and. “We support the RSPO’s Complaints Panel process and continue to urge IndoAgri to act immediately to resolve the identified issues and strengthen their palm-oil policy and grievance mechanism.”. Engaging with civil society through formal meetings and ongoing dialogue, contributing to our updated policy, grievance review, and our approach to independent verification. In 2019, PepsiCo, joined other major companies including Wilmar, Colgate Palmolive, Nestlé, Procter & Gamble, and Nestlé and to work with BSR on a program to protect the rights of children living in oil palm plantations. PepsiCo has come under fire for its increased use of ingredients using conflict palm oil. PepsiCo's stipulation that its palm oil suppliers and business partners should have no link to deforestation since the end of 2015 could be retrospectively checked through … However, with the release of the Moment of Truth report , we’ve learned that consumer companies are not on track to meet these commitments. PepsiCo sources more than 25 crops across 60 countries and supports over 100,000 jobs throughout our agricultural supply chain. PepsiCo and Nestlé criticised over palm oil rainforest clearance in Borneo. Independent verification is essential for credibility by providing assurances that information and claims on compliance and progress towards NDPE are accurate. Among the issues raised in 2019 were: To deliver systemic change we have increased our efforts to engage in and lead collective discussions and actions with peer companies and suppliers. We will inform this work with our experiences to date (e.g. Palm oil supply chains are complex, often involving multiple tiers of suppliers and thousands of intermediaries. Supplier engagement: How we engage with suppliers to communicate expectations and improve performance. By Carina Perkins 2018-04-12T12:33:00+01:00. PepsiCo has updated its palm oil sustainability policy to require all its suppliers, not just direct ones, to commit to ending deforestation, conversion of pealands… If you want to post a public comment, you can do that at the bottom of the page. Nevertheless, we strive to use our position in the global supply chain to catalyze action within our own value chain and promote industry-wide collaboration and action. Estate information (> 50ha): Estate names, parent company names, certification status, % of overall fresh fruit bunch (FFB) tonnage to mill, and a GPS point coordinate as a representative location of the source, Dealers: dealer names and % of overall FFB tonnage to mill, Smallholders (< 50ha): number of smallholders, certification status, and % of overall FFB tonnage to mill. And in 2018 it updated its policy by setting 2020 as the deadline for the full implementation of its NDPE commitment. Pepsico, Unilever and Nestlé accused of complicity in illegal rainforest destruction. “But since this new policy applies to all Indofood [businesses], we hope PepsiCo will discuss [with Indofood] about its new policy.”. In 2020, capability building activities will expand further to cover additional topics where our suppliers require support in improving practices. Palm oil is not only bad for the climate: As their forest habitat is cleared, endangered species such as the orangutan, Borneo elephant and Sumatran tiger are being pushed closer to extinction. In February 2018, PepsiCo committed to participate in Oxfam’s FAIR Company-Community Partnerships project in Indonesia. Gemma Tillack, agribusiness campaign director, RAN, said in a statement that “PepsiCo has a moral obligation to confront the fact that the conflict palm oil currently in its supply chain, and possibly in hundreds of its products the … In 2020, the project is expected to begin implementation in the new location. "PepsiCo has no evidence that its palm oil is deforestation-free. San Francisco, CA – PepsiCo Inc., the world’s second-largest food and beverage company, has announced the adoption of a comprehensive palm oil sourcing policy and committed to a broad set of actions aimed at ensuring the palm oil in its supply chain will not contain deforestation, peatland destruction, or human and labor rights abuses. In May 2019, Citigroup cancelled a $140 million revolving credit facility to Indofood and divested from the company entirely. We are contributing funds for projects and providing relevant business perspectives to the initiative, as well as sharing the lessons in our own supply chains and with our sector peers. In 2019, PepsiCo purchased 12,177 independent smallholder credits and received an award from FORTASBI (Forum of Sustainable Oil Palm Smallholders in Indonesia) in recognition of the support that PepsiCo’s sourcing of RSPO independent smallholder credits had made to the livelihoods of farmers in cooperatives in South Sumatra. In the United States, however, very little palm oil is used because we rely on other edible oil crops that are widely grown in North America. In Indonesia, that centers on the alleged clearing and planting activity by a PepsiCo supplier inside the Leuser Ecosystem in North Sumatra. “In total, there had been 362 people fired,” Herwin said. The timing is perfect. The Danger of Palm Oil Extraction In Africa. For further information on the program, please see the site here and the video below. “Even though they already had a sustainability policy, it didn’t apply to their business partners such as Indofood,” said Fitri Arianti, the RAN coordinator for Indonesia. Feedback from civil society including through reports and direct engagement. Sep 28 2016. In late 2019, it was agreed to integrate this group under the Tropical Forest Alliance (TFA) umbrella as part of the TFA's "jurisdictional exchange network". Mongabay Series: Indonesian Forests, Indonesian Palm Oil. Achieving 82% Roundtable on Sustainable Palm Oil (RSPO) physically certified sustainable palm oil, exceeding our interim target of 80% for 2019. It found that just ten palm oil groups were behind more than half of the 19,894 hectares of nature destruction recorded in these … We recognize that our policies and programs may not prevent all adverse impacts in our value chain. The pair run a joint venture to produce some of PepsiCo’s brands for the Indonesian market, and one of their palm oil suppliers was an Indofood subsidiary, Indofood Agri Resources (IndoAgri). Nestlé's palm oil supply chain is reportedly 90% free of deforestation, up from 77% earlier this year, according to the company. As we seek to expand these benefits and reduce any potential harm, it is important that we address standards in our own supply chain, while also addressing systemic issues through collaboration with suppliers, peer companies, civil society, governments, and certification bodies to help sustainable production to become the norm and for human rights to be respected. Emma Keller, palm oil expert at WWF-UK, said: “Consumers don’t want their food or other purchases to come with a side order of deforestation and destruction of wildlife. “They will meet the government and independent labor union organizations to learn about labor issues in palm oil plantations and find the solutions. Delivering virtual training to 27 auditors from various certification bodies around the globe, including Control Union, Bureau Veritas, SGS, and TUV Nord; Developing internal processes to ensure quality and harmonization among different consumer brands and auditors, including training materials and webinars in multiple languages; Providing suppliers with a tool through which they can uniformly measure and communicate external traceability commitments, as well as the quality and accuracy of the data received and passed further in the chain. CSL is a group of civil society and private sector organizations with a shared interest in sustainable development, active investments in Aceh and North Sumatra, and a desire to work collaboratively with government. hbspt.cta.load(5981609, 'ffe07749-0055-4a95-85b3-bce123fc330c', {}); Mongabay is a U.S.-based non-profit conservation and environmental science news platform. Palm oil, obtained from the fruit of the oil palm tree (Botanical name Elaeis guineensis), was the most widely used vegetable oil in the world and went into the processing of a wide array of food products including cookies, chocolates, peanut butter, crackers, breakfast bars, potato chips, instant noodles, baby formula, margarine, and dry and … As part of its role in the CSL, PepsiCo has been supporting the development of the Aceh Tamiang district initiative and implementation of the landscape plan that the coalition has formulated. The company’s products are being sold in more than 200 countries, through famous brands such as Pepsi, Lays, Tropicana, Quaker, Walkers, Starbucks, and Doritos. At the end of 2019, our suppliers reported approximately 97% of our palm oil volumes were traceable to the mill level. PepsiCo is supporting Femexpalma to implement sustainability across the palm growing regions in Mexico and further promote the RSPO by providing technical support and capacity building. “PepsiCo has repeatedly stated that we are absolutely committed to 100 percent sustainable palm oil in 2015 and to zero deforestation in our activities and sourcing,” the company said last year after an advocacy organization released an ad slamming Doritos, a PepsiCo subsidiary, for its lax palm oil policy. PepsiCo has launched an investigation into reports of deforestation in one of its supplier’s oil palm plantations, located in the Leuser Ecosystem, a biodiversity hotspot that is home to some of the last Sumatran tigers, rhinos, orangutans and elephants left on Earth.The investigation comes in response to a complaint from the Rainforest Action Network (RAN), […]

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