16/12/05 (Friends of the Earth) -  Friends of the Earth welcomed the announcement today that Asda, the UK's second biggest supermarket, has agreed to take action to source more sustainable palm oil by joining the Roundtable on Sustainable Palm Oil. The Roundtable is an association of business and NGO representatives seeking to promote sustainable palm oil [1].

Palm oil is found in one in ten products on supermarket shelves and its production is associated with rainforest destruction and human rights abuses in south-east Asia. Friends of the Earth and the world's leading orang-utan conservation groups released a report in September, "The Oil for Ape Scandal" that revealed that oil palm plantations were wiping out the habitat of the orang-utan in Indonesia and Malaysia, threatening the species with extinction [2]. Palm oil is found in a diverse range of products from bread, crisps, margarine and cereals to lipstick and soap.

Friends of the Earth Corporate Accountability Campaigner Ed Matthew said:

"It is good news that Asda has now acknowledged the damaging impacts associated with most palm oil production and agreed to join the Roundtable. It must ensure this is matched by committed action to use credibly certified palm oil in their products as quickly as possible. The litmus test is how fast this can be achieved. I understand that Asda is now talking to its parent company Walmart about also joining the Roundtable and it is to be hoped that they will follow suit. "

"While it is good news that companies like Asda are starting to recognise their wider responsibilities, this has only happened after sustained campaigning to highlight the particular problem with palm oil. Government action is needed to ensure that all companies realise the need to minimise their environmental impacts in all areas. That is why the UK Government must amend the Company Law Reform Bill now going through Parliament to make sure company directors are accountable for the environmental and social impacts of the products they sell."

There are over 500 companies in the UK that buy and sell palm oil and palm oil products, and only 16 of these have joined the Roundtable on Sustainable Palm Oil. Co-op Retail is the only other British supermarket to be a member. A survey by Friends of the Earth in 2005 revealed that the vast majority of UK companies don't even know where their palm oil comes from.

Friends of the Earth believes the failure of most UK companies to take effective action to stop sourcing palm oil from destructive sources demonstrates the need for stronger regulation to raise corporate standards. Friends of the Earth is calling for the Government to introduce an amendment to the Company Law Reform Bill, currently in Parliament, which requires company directors to minimise the environmental and social impacts of their operations.


Notes:
[1] The Roundtable on Sustainable Palm Oil (RSPO) is an "association created by organisations carrying out their activities in and around the entire supply chain for palm oil to promote the growth and use of sustainable palm oil through co-operation within the supply chain and open dialogue with its stakeholders." The RSPO was formerly established on 8th April 2004 and on 23rd November 2005 adopted the "Principles and Criteria for sustainable Palm Oil Production". For more information go to: www.sustainable-palmoil.org


[2] http://www.foe.co.uk/resource/reports/oil_for_ape_summary.pdf