JAKARTA: Consumer brands including Nestle and Procter & Gamble said they conducted investigations after an environmental group said palm oil sourced from an illegally cleared wildlife reserve in Indonesia may have found its way into their supply chains.
Rainforests within the legally protected wildlife reserve had been cleared to make way for palm oil plantations during the last eight years, the US-based Rainforest Action Network (RAN) said, citing satellite images that it says reveal deforestation in the area.
The group shared images which it said showed stretches of cleared brown land cut into the lush green expanse of Indonesia’s Rawa Singkil Wildlife Reserve, with rows of young palm trees now planted along its borders.
Some images, which RAN said were taken during a field investigation in February 2024, showed that oil palm seedlings were planted on burnt ground surrounded by fallen trees inside the reserve, according to the report published on Monday (Nov 11).
The wildlife reserve, located in Aceh province in the northwest of Indonesia’s Sumatra island, has lost 2,609ha of forest since 2016, with palm trees now growing on 645ha of the cleared area, RAN said.
Reuters could not independently confirm those findings.
Indonesia’s forestry ministry did not respond to a request for comment.
RAN said its investigation, conducted in September and October, had found fresh fruit bunches from the illegal plantations were sold to mills PT Global Sawit Semesta (GSS) and PT Aceh Trumon Anugerah Kita (ATAK), both of which supplied major brands including Procter & Gamble, Nestlé, Mondelez and PepsiCo, according to the RAN report.
GSS and ATAK, which are located in remote areas, could not be reached by Reuters for comment.
Companies typically source palm oil from Indonesian mills through intermediaries.
A Nestle spokesperson said it promptly engaged with its direct supplier regarding GSS to investigate RAN’s findings, adding that, by the end of 2023, 96 per cent of its palm oil supply was “deforestation-free”.
“Should there be a need to find remedies, we will take necessary action,” the spokesperson said.
Procter & Gamble told Reuters that it had conducted an investigation following RAN’s findings and immediately suspended sourcing from both GSS and ATAK.
Singapore-based Royal Golden Eagle Group (RGE), Musim Mas and Indonesian firm Permata Hijau also sourced palm oil from GSS, RAN said.
Apical, an RGE unit, and Musim Mas said they were investigating RAN’s findings. Permata Hijau, Mondelez and Pepsi did not respond to multiple emailed requests for comment.
