Golden Agri-Resources (GAR) and its subsidiaries, Indonesia-based PT Sinar Mas Agro Resources & Technology (SMART) and PT Ivo Mas Tunggal, had submitted plans for coming into compliance with the Roundtable on Sustainable Palm Oil, a certification body for “greener” palm oil, reports Dow Jones.
SMART had been threatened with expulsion from RSPO following revelations that it engaged in clearing of natural forests and peatlands, failed to secure proper land-clearing permits, and did not to properly consult with local communities in areas affected by its plantations. The conduct violated RSPO standards and led several major customers, including Unilever, Nestle, Kraft, and Burger King, to suspend buying from SMART.
SMART’s progress toward compliance will be monitored by the RSPO’s grievance panel.
Cleared peatland – as shown here in PT Kartika Prima Cipta’s palm oil concession close to Lake Sentarum National Park, West Kalimantan. © Rante/Greenpeace
“The Panel has evaluated the companies’ responses, and considers them acceptable at this stage
of the Grievance Procedure,” read a statement issued by GAR. “The Panel will monitor progress on the agreed action plans on a
quarterly basis, with an initial progress report scheduled to be received on 15 Jan 2011.”
GAR, which isn’t an RSPO member itself, has been asked to apply for membership by the panel. GAR has 433,000 hectares of oil palm plantations.
(10/23/2010) In an editorial published October 9th in the New Straits Times (“Why does World Bank hate palm oil?”), Alan Oxley, a former Australian diplomat who now serves as a lobbyist for logging and plantation companies, makes erroneous claims in his case against the World Bank and the International Finance Corp (IFC) for establishing stronger social and environmental criteria for lending to palm oil companies. It is important to put Mr. Oxley’s editorial in the context of his broader efforts to reduce protections for rural communities and the environment.
(10/06/2010) The NGO, The Forest Trust (TFT), made international headlines this year after food giant Nestlé chose them to monitor their sustainability efforts. Nestlé’s move followed a Greenpeace campaign that blew-up into a blistering free-for-all on social media sites. For months Nestle was dogged online not just for sourcing palm oil connected to deforestation in Southeast Asia—the focus of Greenpeace’s campaign—but for a litany of perceived social and environmental abuses and Nestlé’s reactions, which veered from draconian to clumsy to stonily silent. The announcement on May 17th that Nestlé was bending to demands to rid its products of deforestation quickly quelled the storm. Behind the scenes, Nestlé and TFT had been meeting for a number of weeks before the partnership was made official. But can TFT ensure consumers that Nestlé is truly moving forward on cutting deforestation from all of its products?
(09/23/2010) The Roundtable On Sustainable Palm Oil (RSPO), a body the sets standards for eco-friendly palm oil production, on Thursday said Indonesian palm oil producer Sinar Mas Agro Resources and Technology (SMART) breached its sustainability criteria and faces expulsion, reports AFP.
(09/02/2010) Burger King announced it would no longer source palm oil from Sinar Mas, an Indonesian conglomerate, after an independent audit showed one of the company’s subsidiaries had destroyed rainforests and carbon-dense peatlands in Borneo and Sumatra, according to a statement on the fast food chain’s Facebook page.
(08/30/2010) Rapid expansion of oil palm plantations across Southeast Asia have run roughshod over customary tenure systems, resulting in exploitation of local communities, conflict, and outright human rights abuses, reports a new assessment of the palm oil sector by the Forest Peoples Programme (FPP), an international indigenous rights group.
(08/19/2010) Sinar Mas, an Indonesian conglomerate whose holdings include Asia Pulp and Paper, a paper products brand, and PT Smart, a palm oil producer, was sharply rebuked Wednesday over a recent report where it claimed not to have engaged in destruction of forests and peatlands. At least one of its companies, Golden Agri Resources, may now face an investigation for deliberately misleading shareholders in its corporate filings.
(08/10/2010) An environmental audit of palm oil company, PT SMART, found that the company had not cut primary rainforest, yet had destroyed carbon-rich peatlands; however the audit analyzed only 40 percent of PT SMART’s holdings and investigated none of its plantations in New Guinea. A subsidiary of agricultural giant Sinar Mas, PT SMART has been accused in a number of reports by Greenpeace of both destroying high conservation value forests and draining peatlands. Greenpeace’s reports caused both food giants Unilever and Nestle to drop PT SMART as a supplier of their palm oil, while Cargill stated it would wait to hear the results of the audit. Given the audit’s results, both sides are claiming victory.