Wilmar International has finally agreed to eliminate deforestation from its supply chain

Dec 6, 2013 20:36 GMT  ·  By
Palm oil giant Wilmar International moves to cut all ties with deforestation
   Palm oil giant Wilmar International moves to cut all ties with deforestation

Yesterday, Wilmar International, which happens to be the world's largest palm oil trader, finally agreed to eliminate deforestation from its supply chain.

Environmentalists have long argued that the palm oil industry is to blame for the destruction of thousands of hectares of forests annually.

Hence, Wilmar's commitment to end deforestation throughout its supply chain is bound to really make a difference in terms of safeguarding the world's remaining tropical forests. More so given the fact that, for the time being, the company controls about 45% of the world's palm oil market.

“Wilmar International recognizes that while plantation development has contributed significantly to economic development, deforestation and other unsustainable practices have many negative consequences for people and the environment,” Wilmar International writes in a press release.

Furthermore, “To advance this industry transformation, we hereby announce this company policy: no deforestation, no development on peat, and no exploitation of people and local communities.”

The company details that, as part of its commitment to protect forests and cut all ties with unsustainable land clearing, it will closely monitor the activity of not just its subsidies, but also that of its third-party suppliers.

The goal is to ensure that none of the companies it trades with illegally clear forests, set fire to peatland or destroy ecosystems that are known to be home to endangered species. Besides, the company wishes to cut all ties with human rights abuses.

“We believe that the palm oil industry can provide a sustainable and affordable source of vegetable oil to meet rising global demand for responsible products. We can produce palm oil in a way that protects forests, clean air and local communities, all while contributing to development and prosperity in palm oil growing regions.”

“We know from our customers and other stakeholders that there is a strong and rapidly growing demand for traceable, deforestation-free palm oil, and we intend to meet it as a core element of our growth strategy,” reads a statement issued by Wilmar International chairman and CEO Kuok Khoon Hong, as cited by Business Green.