World’s largest palm oil trader unveils plan to monitor suppliers

The world’s largest trader in palm oil has unveiled plans to step up its supplier monitoring in a “potential breakthrough” in stopping rainforest destruction.

Wilmar International, which supplies around 40% of the world’s palm oil, including for popular consumer goods brands, has set out an action plan to prevent forests and peatland being destroyed for palm oil plantations.

Under the plans to implement its “no deforestation, no peat, no exploitation” (NDPE) policy, Wilmar is supporting sustainability consultancy Aidenvironment to draw up a comprehensive mapping database of suppliers.

The database will allow satellite monitoring to spot any deforestation or development on peat, with the company pledging to immediately suspend the suppliers involved, while also engaging with them to improve their operations.

Destruction of rainforests and peatlands in countries such as Indonesia and Malaysia for palm oil production releases large amounts of carbon emissions, which fuel climate change, and threatens wildlife such as orangutans.

Greenpeace, which has been campaigning against rainforest destruction for palm oil, hailed the announcement.

Kiki Taufik, global head of Indonesian forests campaigns, Greenpeace Southeast Asia, said: “Wilmar supplies palm oil to most of the world’s major food and cosmetics brands. So today’s announcement is a potential breakthrough.

“If Wilmar keeps its word, by the end of 2019 it will be using satellites to monitor all of its palm oil suppliers, making it almost impossible for them to get away with forest destruction.

“As the world wakes up to the climate and extinction crisis, inaction is not an option.”

Wilmar’s chief sustainability officer Jeremy Goon said: “We remain steadfast in our commitment to our NDPE policy and this new enhanced plan is part of our sustainability strategy as we strive towards a supply chain free of deforestation and conflict.”