Nestle to stop sourcing from Indonesian palm oil producer AAL
In this article (5)
Food giant Nestle plans to stop sourcing from subsidiaries of Astra Agro Lestari (AAL), a major Indonesian palm oil producer accused by environmental groups of land and human rights abuses.
The move comes as multinationals face increased reputational and legal pressure from consumers and governments to clean up their global supply chains in the fight against climate change.
Nestle, maker of KitKat chocolate and Nespresso coffee, told Reuters that following a recent independent assessment, it instructed its suppliers to ensure palm oil from 3 subsidiaries of AAL no longer enters its supply chain.
It did not specify the claims again AAL other than to say it had been on its ‘grievance’ list for several months.
The Swiss-based group expects it will not be using any palm oil from the AAL subsidiaries by the end of the year.
Questions & Answers
Q.Which specific companies within AAL will Nestle stop sourcing from?
Which specific companies within AAL will Nestle stop sourcing from?
Nestle has instructed its suppliers to ensure palm oil from three unnamed subsidiaries of Astra Agro Lestari (AAL) no longer enters its supply chain. The article does not specify which three subsidiaries these are.
Q.Why has Nestle decided to stop sourcing from Astra Agro Lestari (AAL)?
Why has Nestle decided to stop sourcing from Astra Agro Lestari (AAL)?
Nestle's decision follows a recent independent assessment. Environmental groups have accused AAL of land and human rights abuses, and Nestle had placed AAL on its 'grievance' list several months ago.
Q.By when does Nestle expect to have completely removed AAL palm oil from its supply chain?
By when does Nestle expect to have completely removed AAL palm oil from its supply chain?
The Swiss-based food giant expects that it will no longer be using any palm oil from AAL subsidiaries by the end of the current year. This is a complete removal.
Q.What is the broader reason for Nestle's move to change its sourcing practices?
What is the broader reason for Nestle's move to change its sourcing practices?
Multinationals like Nestle are facing increasing reputational and legal pressure from consumers and governments. They are being pushed to improve global supply chain practices in the ongoing fight against climate change.
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