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November 13, 2014

Major Importer IOI Falls Short in Latest Pledge to Eliminate Conflict Palm Oil

Despite sector movement toward more responsible palm oil production, IOI Loders Croklaan new policy does not cover all IOI Group’s plantations and operations.

FOR IMMEDIATE RELEASE

Thursday, November 14, 2014

CONTACT: Christopher J. Herrera, 510.290.5282, Christopher@ran.org

San Francisco, CA – Responding to mounting pressure from large corporate customers, consumers and environmental and social justice organizations, IOI Loders Croklaan announced new palm oil commitments today. IOI Loders Croklaan has stated its intention to eliminate palm oil in its supply chain that is associated with deforestation, degradation of carbon-rich peatlands or failure to protect Indigenous and other human and worker rights.  

IOI Loders Croklaan is a major importer of palm oil into the United States. Its parent company IOI Group has large plantation holdings in Malaysia and Indonesia, as well as sourcing from third-party suppliers.

Unlike other leading palm oil traders, Wilmar and Golden Agri Resources, IOI has yet to commit to eliminate sourcing from palm oil companies whose operations are actively deforesting, expanding on peatlands or violating the rights of local communities and workers.

Rainforest Action Network (RAN) says today’s announcement demonstrates that the IOI Group still needs to fundamentally transform its business model away from the destruction of forests and peatlands and the abuse of local communities and workers.

In response to today’s announcement, RAN’s Policy Director Bill Barclay issued the following statement outlining the steps IOI Group must now take.

“This announcement shows that IOI Group is not only falling behind its peers, it is falling behind its processing arm IOI Loders Croklaan.”

“IOI Loders Croklaan has woken up to the fact that it can no longer traffic Conflict Palm Oil. While one subsidiary of this palm oil giant is declaring an end to the destruction of rainforests, the parent company continues to source from companies that destroy forests, peatlands and abuse the rights of local communities and workers.”

“It is clear that IOI Group has yet to transform itself into a trusted supplier of responsible palm oil. It’s time the entire company realized that business as usual is not an option and took immediate action to shift its policies and practices. IOI Loders Croklaan will not regain the confidence of its customers until they have proof that IOI Group is driving changes that are so desperately needed on the ground. All eyes are now on IOI Group’s next steps.”

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