29/06/2012 (The CSR Digest) - Earlier this week, Carrefour presented IDR 165 million of premiums to smallholder farmers from PT Hindoli, Cargill’s RSPO certified oil palm plantation in South Sumatra, Indonesia. The premiums, from the purchase of RSPO GreenPalm Certificates, affirm Carrefour’s commitment to sustainable business practices.

Carrefour is committed to protecting the environment by taking part in the fight against climate change; preserving natural resources and biodiversity; reducing waste; and maximizing its recycling initiatives.

As part of its commitment to sustainability, Carrefour has a target to purchase its entire palm oil supply through sustainable sources by 2015. Since 2010, Carrefour has been purchasing RSPO-certified palm oil for all of its products that are manufactured in Europe.

In 2011, as part of fulfilling its target, Carrefour purchased 9,000 RSPO GreenPalm Cargill Smallholders’ Scheme Certificates. A total amount of US$18,090 (Approximately IDR 165.2 million) will be paid directly to the PT Hindoli smallholders. The premiums presentation ceremony, which was held on 26 June at Sintesa Peninsula Hotel in Palembang, was attended by representatives from Carrefour and Cargill, as well as Hindoli palm oil smallholders.

“Carrefour believes that Cargill’s partnership with the palm oil smallholders has helped them to increase their yields, improve their incomes and raise their standards of living. This is one of the reasons why we have chosen to partner with Cargill. In line with our business values, our collaboration with Cargill’s PT Hindoli plantation will not only be beneficial to the palm oil industry by promoting the use of sustainable palm oil, but it will also bring about a positive contribution to the economic development of Indonesia, as well as to the welfare of the people,” said Adji Srihandoyo, Corporate Affairs Director, PT Carrefour, Indonesia.

“Thanks to our partnership with Carrefour, the premiums the smallholders receive today will contribute to the well-being of the farmers and the management of the smallholder cooperatives, better safety equipment as well as the smallholders’ ability to continue their sustainable practices. Sustainability is key not just for the palm oil sector, but for all of agriculture, particularly in Indonesia. We are proud to lead the move to sustainability, with our smallholders being great role models in demonstrating Cargill’s sustainable business practices,” said Anthony Yeow, President Director, PT Hindoli.

In line with its support to the development of sustainable palm oil in Indonesia, Carrefour also announced that it is lending support to 250 households of palm oil smallholders in Ukui Sub-district, Pelalawan, Riau, to obtain RSPO certification. The initiative, which was announced on 2 May 2012, willl make the smallholders to be the first independent group of RSPO-certified smallholders in Indonesia.

This year, Carrefour Indonesia will also be launching its EcoPlanet cooking oil, the first product derived from palm oil plantations in line with international standards on sustainable and environmental-friendly management. The palm oil used in every EcoPlanet product is sourced according to the standards outlined by the RSPO. By buying Carrefour’s EcoPlanet cooking oil, consumers will be supporting responsible consumption and contributing to the long-term development of the palm oil industry in Indonesia.