Cargill Demands IOI Issue a Responsible Sourcing Policy: Greenpeace Reaction

Press release - June 24, 2016
Jakarta, June 24, 2016 – Yesterday Cargill Inc. published a statement defining its expectations after its supplier IOI Group was suspended from the Roundtable on Sustainable Palm Oil (RSPO). Cargill is calling for IOI to issue a responsible sourcing policy as well as a detailed implementation plan for that policy – including specific measures to address the grievances at the heart of the RSPO complaint – all by by July 15, 2016.

"This is a clear ultimatum from Cargill, one of IOI's largest remaining customers. The palm oil giant has a simple choice. It can implement sweeping reforms to meet the market’s demand for responsibly produced palm oil, or it can continue trying to swim against the tide – and drown," said Head of Greenpeace Indonesia Forest Campaign Kiki Taufik.

Cargill is also requesting IOI establish a formal public grievance process by September 15, 2016. Recent Greenpeace field investigations have shown that the negative impact of IOI’s activities – including peatland drainage and deforestation – is far greater than originally recognized in the RSPO complaint. These destructive practices are not in compliance with Cargill’s own policy on sustainable palm oil.

Greenpeace calls on IOI to implement strong sustainable standards aligned to internationally recognized best practices across its entire operations – including third-party suppliers. IOI must commit to develop a comprehensive land management plan that includes protection and restoration of peatland, as well as the implementation of the High Carbon Stock Approach (HCSA). The HCSA methodology is the most reliable standard to implement companies’ ‘No Deforestation’ commitments.

“Cargill is committing to drop any new business if IOI fails to comply with its request. Greenpeace expects Cargill to take a further step, pledging to phase out IOI as a supplier from existing purchasing contracts in case it fails to do so," Kiki said.

Greenpeace demands that all IOI customers – including Cargill – take a strong stance requiring corrective action in proportion to the real scope of the Malaysian company’s deforestation, peatland degradation, social conflict and bad labor practices.


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