Golden Agri-Resources says Nestle has resumed palm oil purchases from its Indonesian business after the company made progress to meet Nestle's sourcing guidelines; Nestle discontinued palm oil sourcing from Sinar Mas in 2010
September 16, 2011
– Golden Agri-Resources Ltd. said Sept. 14 that Nestle SA has resumed palm oil purchases from its Indonesian business after the company made progress to meet Nestle’s sourcing guidelines, Dow Jones Newswires reported Sept. 15.
Nestle discontinued palm oil sourcing from PT Sinar Mas Agro Reources & Technology Tbk in 2010 after allegations of draining of peat lands and environmental law violations, but Nestle said its recent decision is based on assessments that Golden Agri is making “continuing progress” toward its sourcing guidelines.
Continued business with Golden Agri will be dependant upon whether the company can deliver sustained progress towards meeting Nestle’s responsible sourcing guidelines and Roundtable on Sustainable Palm Oil certification, a Nestle spokeswoman said in response to an inquiry by Dow Jones.
Nestle has used the non-governmental organization The Forest Trust to help assess compliance in Golden Agri’s plantations. Nestle also noted Golden Agri’s progress toward implementing a forest conservation policy and attaining of RSPO membership, the spokeswoman added.
Golden Agri said it has been cooperating with TFT to enforce a forest conservation policy to ensure the company doesn’t have a deforestation footprint, and attain sustainable growth in the long term.
The primary source of this article is Dow Jones Newswires, New York, New York, on Sept. 15, 2011.