Greenpeace investigates palm oil trader linked to rainforest destruction
A Greenpeace investigation suggests that Wilmar International, the world’s largest palm oil trader that supplies palm oil to global consumer companies, is still linked to forest destruction for palm oil, despite its commitment five years ago to end deforestation.
A Greenpeace investigation suggests that Wilmar International, the world’s largest palm oil trader that supplies palm oil to global consumer companies, is still linked to forest destruction for palm oil, despite its commitment five years ago to end deforestation. According to the non-governmental environmental organization, an area twice the size of Paris has been destroyed by Gama, a palm oil business run by senior Wilmar executives and members of their family.
Gama, one of Indonesia’s largest palm oil plantation companies, was set up by Wilmar’s co-founder, Martua Sitorus and his brother Ganda in 2011. Gama’s concessions are owned and managed by members of Ganda’s and Martua Sitorus’s family, which includes Wilmar’s country head and deputy country head for Indonesia.
In December 2013, Wilmar became the first palm oil trader to publish a “No Deforestation, No Peat, No Exploitation”’ (NDPE) policy that applied to its own plantations and those of its suppliers. Mapping and satellite analysis shows that Gama destroyed 21,500 hectares of rainforest or peatland since Wilmar made its commitment. According to Greenpeace, Wilmar also has a history of evading responsibility for environmental and human rights abuses by offloading problematic concessions to Gama.
Wilmar denies having any influence over Gama, although it admitted in a communication to Greenpeace that Gama is run by Wilmar senior executives and members of their family.
Wilmar is on the board of the Roundtable on Sustainable Palm Oil (RSPO), whose bi-annual conference was held last month in Paris. At least one Gama company, S&G Biofuel Ltd, is also an RSPO member. Under RSPO membership rules, companies that share management or control should be treated as one group. This makes Wilmar responsible for what happens in Gama’s concessions, concludes Greenpeace.
In response to the Greenpeace report, Wilmar released the following statement: “Wilmar and Gama Corp are two separate corporate groups, operating independently of each other. Wilmar has no control, management or otherwise, over Gama Corp. Wilmar executives with familial ties with Gama Corp do not hold any decision-making power or influence on Wilmar’s sustainability policy.
Wilmar has engaged with and will continue to engage with Greenpeace on the issues raised in the report. In the meantime, as reflected in the report, Wilmar has, as of 20 June 2018, ceased sourcing from all suppliers that are allegedly associated with Gama Corp. as identified by Greenpeace. Wilmar will not buy from any company that cannot prove to our satisfaction that they do not belong to Gama Corp. because of the alleged identified non-compliance with Wilmar’s No Deforestation, No Peat and No Exploitation (NDPE) Policy.”
Wilmar statement (pdf)