Practices such as those identified in Amnesty International’s report have no place in our supply chain. Nestlé engaged extensively with Amnesty during the drafting of the report, including supplying detailed information on our relationship with palm oil supplier Wilmar and on our actions to address human rights and labour rights issues in the sector. We will investigate allegations related to our purchasing of palm oil, along with our suppliers.
Wilmar supplies around 10% of the total palm oil that we use in our products. We are working closely with the company to improve traceability. Now, 83% of the volume that we purchase is traceable back to the mill of origin and 11% is traceable to plantation. This traceability does not yet extend to the plantations at the centre of the allegations in Amnesty International’s report.
For six years, we have worked with partners, including The Forest Trust, to improve transparency, traceability and supplier behaviour in the palm oil industry. We have processes in place to assess where the risk of labour or human rights violations exist in our supply chain and we are taking action to address these. Where our suppliers fail to meet the provisions in our Supplier Code (pdf, 1.67MB), including on labour rights, we will suspend them.
Given the complexity of the palm oil industry and the estimated four million people that it employs in South East Asia, progress in addressing labour and human rights issues relies on cross-industry efforts. We will continue to play an active role, alongside others.
For further information, please contact:
Nur Shilla Christianto
Head of Corporate Communication
PT Nestlé Indonesia
e-mail: [email protected]