Pepsi Co Is Committed to Adopt Sustainable Palm Oil Policy

Pepsi Co Is Committed to Adopt Sustainable Palm Oil Policy

InfoSAWIT, SAN FRANCISCO - PepsiCo Inc., the second biggest food and drink company in the world has announced to adopt the comprehensive palm oil procurement policy and is committed to run series of action within the goal to make sure that the palm oil in the supply chain would have no deforestation, no peat, or no human rights and labors’ violation. The changing approach of palm oil from the company is the six year – public campaign result and put it as the advanced one of many other companies. It gives signal to the industries that it needs to realize sustainable and responsible palm oil production.

“We do appreciate PepsiCo for adopting the comprehensive policies and advanced action which if they are implemented, would urge the changes in the palm oil chain supply and the wider industries,” Director of Agribusiness Campaign, Rainforest Action Network (RAN), Robin Averbeck said, as in the official statement to InfoSAWIT recently.

The policy is implemented in every supply chain of PepsiCo, starting from the direct supplier up to the producers, covering every crude palm oil and palm kernel which PepsiCo uses whole over the world. Two major changes, are, the policy is implemented in every supplier in the groups of the company, including every operational up to the third suppliers and not only palm oil that is directly sold to PepsiCo. This is the claim of the partners of the business in the group level of the company to do business with PepsiCo, including Indofood—one biggest food company in Indonesia. PepsiCo is the business partner to make snacks in Indonesia and the main company of Indofood, Salim Group.

Indofood and Group Salim have the significant roles in palm oil operational in Indonesia – the labors’ exploitation, the violation of law, the peat new planting were documented. Besides, PepsiCo is also committed to increase the obedience to human rights, and should be more proactive in palm oil industries, solve the deforestation issues which run in Lauser Ecosystem Zone which is now critical in Indonesia.

The policy and agreement of the action to sustainable palm oil chain in PepsiCo should be developed with RAN, Organisasi Penguatan dan Pengembangan Usaha-usaha Kerakyatan (OPPUK), and International Labour Rights Forum (ILRF), through the troubled palm oil campaigns which have been the focus about the deforestation and labors’ violation in the industries.

“The climate crisis gets clearer globally and the archipelago country, such as, Indonesia is the first one getting the worse impact,” Executive Director of OPPUK, Herwin Nasution said.

He thought that when troubled palm oil plantations contribute to the forest damage and the climate, these would make the loss for the labors in the plantations in Indonesia. “As the organization representing the labors in palm oil plantation, we do welcome the commitment of PepsiCo and we would always monitor this until it is really implemented in the society,” he said. (T2)


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