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. Pepsico buys staggering amounts of conflict palm oil every week. Working with Proforest (and organizations with expertise in managing natural resources sustainably). The Forest Positive Coalition of Action will: PepsiCo is an active member of the Shared Responsibility Task Force, and on October 31, 2019, the RSPO’s Board of Governors approved landmark rules calling for “Shared Responsibility,” and for all members of the organization to do their part to “Mobilize, Act and Transform” to fulfill the RSPO’s mission. PepsiCo and Mars still purchasing palm oil from supplier behind deforestation. 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. Risks discovered and addressed through our grievance mechanism. A follow-up report published later that year revealed little progress in addressing the problems, which had also caught the attention of the Roundtable on Sustainable Palm Oil (RSPO), of which Lonsum was a member at the time. "PepsiCo has no evidence that its palm oil is deforestation-free. “Our hope is for the deforestation monitoring system to be scaled up in Leuser,” Fitri said. At the supplier level, we are engaging with Oleofinos, PepsiCo’s main supplier, to improve transparency and traceability of Oleofinos palm. Since the start of the program, mill traceability has increased by nearly 30%. The productivity rates of smallholders in Chiapas and Tabasco are among the lowest globally and have the potential to double. In July 2017, we formalized a grievance mechanism for our agricultural supply chain to complement our existing programs and processes to prevent, identify, and manage environmental and social concerns throughout our value chain. Add this to PepsiCo’s conflict palm oil file: we’ve released a report that ties the snack food giant to massive-scale deforestation in Indonesia, home to our precious orangutans. Federación Mexicana de Palma de Aceite (Femexpalma), PepsiCo Supplier Code of Conduct - English, Human Rights Statement and Salient Issues Statement, PepsiCo Statement on Working Together in the Leuser Ecosystem, PepsiCo Sourcing of Palm Oil from Indonesia, Combined Circular to Pioneer Foods Shareholders, Global Forest Watch (GFW) Universal Mill List, Statement on Working Together to Preserve the Leuser Ecosystem. Supplier engagement: How we engage with suppliers to communicate expectations and improve performance. At the mill level, volumes can be defined as traceable to plantation with the following information: Engaging with our suppliers is critical for delivering our commitments and helping to realize a sustainable palm oil industry. In 2019, the Coalition developed five working groups to address the key thematic areas requiring attention: governance, metrics, growth, and one for each district initiative: Aceh Tamiang and Tapanuli Selatan. We are also supporting steps to measure and verify sustainable palm oil volumes through the NDPE IRF group and we are convening engagement with industry and civil society on independent verification. While we have information on the remaining approximately 3% of mills, we do not currently believe the quality of data is sufficient, as the supply chain complexity in countries like India can complicate the ability of suppliers to provide timely, complete data. With every pack of Cheetos, Lay's chips and bottle of pepsi you buy, you're supporting child slavery, deforestation and taking away the homes of orangutans. In 2019, we achieved 82%, an improvement over our 2017 and 2018 figures of 32% and 52%, respectively. We are an original signatory to the CGF Forest Positive Coalition, which was launched in 2019. It is almost entirely reliant on GreenPalm certificates and its traceability … Higher performing suppliers (in the top 25%) were approached to partner with us on industry leading protocols and practices, such as traceability to mill verification and NDPE policy compliance through participation in the NDPE IRF (see Risk Management section for more details). If deforestation within oil palm concessions in the three regions continues at this rate, total deforestation by the end of this year would be lower than 2019 . PepsiCo is the first palm oil buyer to publicly commit its participation and will be joined by others as the project progresses. Tools were developed on the allocation process, including guidance on creating and communicating volume profiles. Snacks and drinks giant PepsiCo, Inc. has announced a Global Policy on Sustainable Palm Oil that builds on the Principles & Criteria of the Roundtable on Sustainable Palm Oil (RSPO).. Aside from a comprehensive palm oil sourcing policy, the Global Policy includes a set of actions to ensure the palm oil in its supply chain is not associated with deforestation, peatland … Our approach is set out here. PepsiCo and Nestlé criticised over palm oil rainforest clearance in Borneo. 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. The key objective is to build capability so that member organizations and their suppliers have the knowledge, confidence, and ability to develop and execute robust responsible sourcing programs. For more information, please see our Statement on Working Together to Preserve the Leuser Ecosystem. Sep 28 2016. For further information on our work in addressing palm oil challenges in Indonesia, including a long running grievance about Indofood, please see PepsiCo Sourcing of Palm Oil from Indonesia. In addition to formal risk assessments, we also rely on other sources of information, including: Engagement with direct and indirect suppliers. Snacks and drinks giant PepsiCo, Inc. has announced a Global Policy on Sustainable Palm Oil that builds on the Principles & Criteria of the Roundtable on Sustainable Palm Oil (RSPO).. Aside from a comprehensive palm oil sourcing policy, the Global Policy includes a set of actions to ensure the palm oil in its supply chain is not associated with deforestation, peatland … our approach to verification of mill data) and build on successful examples of verifying delivery of NDPE practices. More. Most have a combination of environmental and social concerns, primarily deforestation and labor rights issues. This enables us to focus our attention and resources on issues and regions of greatest risk to prioritize our actions, engagement efforts, and investments in the most meaningful way. 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). 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. The objective of the group was to support members in developing and implementing approaches to sustainable landscapes. The timing is perfect. 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. 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. In palm oil consuming markets we will: Seek to enhance the EU’s pledged Initiative on Deforestation and forest Degradation – Stepping Up EU Action, resulting in a full-fledged Action Plan on Deforestation; continue promoting legislative restrictions on EU trade in illegal and unsustainable palm oil, and other like agricultural commodities We expect to publish more detailed information on grievances and our grievance management in 2020. In May 2019, Citigroup cancelled a $140 million revolving credit facility to Indofood and divested from the company entirely. In Indonesia, that centers on the alleged clearing and planting activity by a PepsiCo supplier inside the Leuser Ecosystem in North Sumatra. 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. We will continue working with our suppliers to increase visibility of the mills in our palm oil supply chain. It is almost entirely reliant on GreenPalm certificates and its traceability … The project promotes a model for sustainable palm oil that benefits women, smallholder farmers, local communities, the environment, and participating companies. Mexico is one of the largest suppliers of palm oil for PepsiCo. Since our last palm oil report, we have continued to manage risks in our supply chain, including by: PepsiCo became an RSPO Member in 2009, and since then, we have been actively working with suppliers to promote the benefits of this membership, which includes to the environment, workers, local communities, and business overall. They do this through focusing on the issues that matter, such as respect for human rights, prioritizing practical action, not just conversation, to create lasting change in global supply chains,and through collaboration between brands and suppliers (with due respect for anti-trust legislation) to drive convergence in approaches to responsible sourcing. In late 2019, the district government formally adopted the plan and signed an agreement to work together towards specific targets on deforestation, livelihoods, and productivity in partnership with local stakeholders (a production-protection-inclusion model). Fitri said PepsiCo had told RAN it they would visit the country to assess the labor issues. More. During the RSPO Roundtable (“RT17”) conference in Bangkok, for example, PepsiCo and Cargill hosted the latest in a series of discussions with a wide range of civil society organizations – both local and global – that are dedicated to preserving forests and biodiversity, and protecting human rights associated with palm oil production in South East Asia. 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. The company, owner of brands including Pepsi, Lays, Doritos and Quaker Oats, says it will now only buy palm oil from sustainable sources with no further development of high carbon stock (HCS) forests or high conservation value (HCV) areas, and no new conversion of peatlands. FAIR Company-Community Partnerships address sustainability, human rights, and economic development issues holistically through a multi-stakeholder, inclusive, and landscape-based approach. The following month, Standard Chartered dropped Indofood as a client, while Rabobank stopped loans for its palm oil operations. In its newly released 2017 Palm Oil Progress Report, PepsiCo announced that the company sourced 32% certified sustainable palm oil in 2017, exceeding its interim target of 30%, and that it is well on its way to achieving 50% by the end of 2018. PepsiCo’s stipulation that its palm oil suppliers and business partners should have no link to deforestation since the end of 2015 could be … PepsiCo, the world’s second-largest F&B company and a major buyer of palm oil, first rolled out its sustainability policy in 2013. Unlike other companies (like Kellogg’s and Mars), it is okay with buying oil that comes from rainforest destruction. The mechanism allows third parties to raise concerns that our environmental and social goals and policies may not be upheld within our agricultural supply chain. The TFA is a multi-stakeholder partnership platform, initiated to support the implementation of private-sector commitments to remove their deforestation from their palm oil, beef, soy, and pulp and paper supply chains. The protocol is also the basis for independent verification undertaken by suppliers to verify the quality of the management systems used to collect their supply chain data. P&G has not released a progress figure. “It applies to all palm and palm kernel oil that we use globally and covers our entire supply chain, from direct suppliers to production sources at the group level, meaning NDPE should be applied across their entire operations and third-party supply chain and not limited solely to the palm oil sold to PepsiCo,” the company says. We are also supporting smallholders through our suppliers to ensure that PepsiCo’s palm oil policies are implemented in a way that supports them (see Supplier Engagement section), and through our investment and participation in on-the-ground programs (see Positive Impact section). Production, Protection, Inclusion in Aceh Tamiang. In 2020, the project is expected to begin implementation in the new location. PepsiCo’s new policy of “No Deforestation, No Peat, No Exploitation,” or NDPE, addresses a previous loophole by applying to a wider network of suppliers and business partners. PepsiCo and Nestlé criticised over palm oil rainforest clearance in Borneo. We also implemented a training program in both English and Spanish and maintain a helpdesk. 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. Attached to the policy is our implementation plan to 2020, which provides readers with an overview of how we translate our policy vision into specific actions and results. We do this through several avenues, including our reporting efforts, one-on-one meetings, participation in forums and working groups and collaborations that seek to tackle the systemic issues underpinning many of the environmental and social challenges facing the sector. We also continue to provide transparency by publishing our direct suppliers and mill lists for our palm oil supply chain on an annual basis. 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In February 2018, PepsiCo committed to participate in Oxfam’s FAIR Company-Community Partnerships project in Indonesia. PepsiCo has come under fire for its increased use of ingredients using conflict palm oil. The meeting with civil society covered a range of issues including measuring progress on delivering on NDPE commitments; independent verification and how it can be used to drive better outcomes; and human rights, including worker rights and land rights within palm oil production. Building on continued interest from PepsiCo and following the geographic priorities as directed by the Indonesian government, Oxfam has redirected its focus to local economic development needs in Sulawesi.

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