Unilever put the brakes on destructive palmoil!

Unilever put the brakes on destructive palmoil!
The expansion of palm oil in Southeast Asia often comes at the expense of small farmers and forests. Following heated criticism of the palm oil industry and palm oil purchasers, companies promised to work hard on making palm oil production more sustainable. That’s why the Roundtable for Sustainable Palm Oil (RSPO) was founded, which has established a certification system. In practice, however, it turns out that companies with a RSPO certificate don’t always comply with the guidelines. In spite of having a green label, they are guilty of destructive practices. This is called greenwashing. The Malaysian concern IOI, with its Dutch subsidiary Loders Crocklaan, is such a company. In this Earth Alarm, we call on Unilever, as a major customer of IOI, to use its market position to exert pressure on the palm oil producer. Unilever has to force IOI to stop deforesting and stealing land from local people in developing countries.

In March, Friends of the Earth Netherlands, together with other organisations including Malaysian and Indonesian NGOs, submitted a complaint to the RSPO. The RSPO suspended all certification activities for the Malaysian palm oil producer and IOI was given a deadline of 2 May to propose a solution for the identified problems. The RSPO expressed dissappointment with the response which was finally made by IOI. Nevertheless, the RSPO has extended the deadline to 25 May so that IOI can still present an action plan. But up till now there has been no sign that IOI recognises the land rights of the residents of Long Teran Kanan or has acknowledged the problems it has caused in Ketapang.

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In its sustainable procurement policy, Unilever has promised to use sustainable palm oil. However, it does not do enough to tackle the abuses that take place at IOI. Unilever needs to stand behind what it says: its supplier IOI must come round...or be gone!

By writing a letter to IOI’s major purchaser Unilever, you can help to exert pressure on the palm oil concern. Call on Unilever as prominent buyer of IOI’s products to make the company change its practices. If Unilever doesn’t succeed, it should stop buying palm oil from IOI. The palm oil producer must work harder to improve!

Write with us and increase pressure to stop the production and use of unsustainable palm oil.

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Unilever and IOI

IOI is a large Malaysian palm oil concern that recently expanded its plantations to Indonesia. It is the largest supplier of palm oil to the Netherlands. IOI is a leading player in promoting the use of palm oil as biofuel and possibly also as aircraft fuel.

Unilever is a major purchaser of IOI’s palm oil, and makes a variety of consumer products from it, such as crisps, chocolate and cosmetics. The Dutch company has announced that it will exclusively use certified sustainable palm oil as quickly as possible and at the very latest by 2015. Both Unilever and IOI are on the RSPO steering committee. Both should therefore abide by the RSPO code of conduct, which prohibits unsubstantiated green claims.

Using certification as a smokescreen

IOI has had a number of its plantations in Malaysia certified. According to the RSPO requirements, this prohibits abuses at any other locations as well. This is, however, not the case.

Following complaints on the certifications, the RSPO concluded that IOI has violated the RSPO rules in Ketapang and Sarawak. The company is doing too little to resolve land use conflicts with local people. IOI is also involved in deforestation and draining peat lands, which endangers wildlife. Nevertheless, IOI still presents itself to its customers and potential investors as a green model company.

Harmful consequences to the environment in Ketapang

Exactly a year ago, Friends of the Earth Netherlands confronted IOI with the abuses it had committed in expanding its plantations in Ketapang. The palm oil producer had committed fraud in order to obtain permits and did not have permission to fell timber. The company had also destroyed forests in the Danau Manismata Reserve, which falls outside of its own lands, with serious consequences to the rare plants and animals. Up till the present IOI has denied that there have been problems in Ketapang.

Human rights violation in Sarawak

Despite a court ruling against it one year ago, IOI continues to plant and harvest oil palms on the land of villagers in Long Teran Kanan. The forest has been sacrificed for the plantations, even on the steep hills and buffer zones along the river. This is in breach of RSPO environmental requirements. Among other things this has led to soil erosion and pollution of villagers’ drinking water. In spite of earlier promises of settlement and compensation, after 12 years of legal proceedings the company wants to continue litigation.

The villagers are totally fed up with IOI’s arrogant position. At the end of March, indigenous people from Long Teran Kanan blockaded the entrance to the plantations, and harvested and sold the palm oil on their lands themselves. The police were asked to enforce the court’s decision that prohibits IOI passage.

What does Milieudefensie want?

In March, Friends of the Earth Netherlands, together with other organisations including Malaysian and Indonesian NGOs, submitted a complaint to the RSPO. The RSPO suspended all certification activities for the Malaysian palm oil producer and IOI was given a deadline of 2 May to propose a solution for the identified problems. The RSPO expressed dissappointment with the response which was finally made by IOI. Nevertheless, the RSPO has extended the deadline to 25 May so that IOI can still present an action plan. But up till now there has been no sign that IOI recognises the land rights of the residents of Long Teran Kanan or has acknowledged the problems it has caused in Ketapang.

As long as IOI takes no responsibility for the problems it has caused, Unilever must use its position as a major purchaser to force the company to change. If that does not bring results, Unilever must stop purchasing its palm oil from IOI.

Therefore, ask Unilever to demand from IOI:

  1. that they comply with all of the RSPO’s criteria for sustainable palm oil, and that they submit a constructive action plan by 25 May;

  2. that they recognise the land rights of the people of Long Teran Kanan;

  3. that they acknowledge, limit and compensate the environmental damage caused in Ketapang and Long Teran Kanan.

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